SALT LAKE CITY — Two years after the state sued a contractor for $30 million over a problematic rebuild of Timpanogos Highway, Utah lawmakers will consider a proposed $11.4 million settlement to be paid by the company.
The potential agreement detailed in a legislative resolution is up for debate Wednesday during a special session of the state Legislature.
The state and Flatiron Harper Joint Venture hammered out the proposed settlement in a mediation, according to the resolution.
In 2015, the Utah Department of Transportation sued the contractor for nearly $30 million for an upgrade to state Route 92 that began in 2009. The state said the renovated road had structural problems and the company missed several deadlines. The legislative resolution made public Monday notes the contractor filed a counterclaim, arguing the state broke its contract.
The settlement stipulates Flatiron Harper will pay $8.4 million to cover longterm repair costs and $3 million in liquidated damages. It will preclude UDOT and Flatiron Harper from bringing future claims related to the case.
The resolution also states the governor and the Legislature must approve settlements over $1 million for state agencies. Its sponsor is Taylorsville Republican Wayne Harper.
Gov. Gary Herbert called the special session last week so the state could set aside money and continue to lease a Salt Lake City block for its plan to curb crime in the Rio Grande neighborhood. Lawmakers also will consider those proposals.