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CONTRACTOR STRIPPED OF BORROW-SITE RIGHTS AFTER IT STRIPPED A HISTORIC SITE

Thursday, November 15, 2012 02:45 am

 

Extra Costs

Power Wire Constructors v. Dept. of Energy, 2012 CIVBCA No. 2057 Lexis 230 (Aug. 30, 2012)

After completing construction of an electrical power substation in Mitchell, South Dakota a contractor sought $475,000 for extra costs associated with its inability to use a proposed borrow area during its work. But the contractor's interference with a historical site negated its right use to the site.

The contract between Power Wire Constructors (PWC) and the Department of Energy required that PWC notify the agency of its proposed locations for obtaining borrow material. The agency then had 60 days to perform tests of the proposed sites, in accordance with the National Historical Preservation Act (NHPA), and to accept or reject the sites. PWC submitted several borrow areas for consideration, and three were approved outright. However, because area 5 was considered administratively eligible for inclusion on the National Register, the agency notified PWC that it would allow area 5 to be used for borrow materi[...]

 
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