Construction Resumes on Denver VA Medical Center

Department of Veterans Affairs and contractor Kiewit-Turner have reached agreement to resume construction on stalled project

Denver Business Journal

Contractor Kiewit-Turner Construction and the Veterans Administration were at odds over the massive project of building a new VA hospital near Denver. The contractor took its case before the Civilian Board of Contract Appeals in Washington outlining years of failed negotiations as well as inadequate planning and budgeting by the VA. The Appeals Board permitted Keiwit-Turner and its subs to abandon the project that was 62 percent complete.

Now the Department of Veterans Affairs and Kiewit-Turner have reached an agreement to resume construction of the hospital. The agreement calls for Kiewit-Turner and all subcontractors to be reimbursed for all costs associated with the project up to last week's shutdown - a total of $158 million - plus another $50 million to cover up to three months of work on the construction site, $20 million for a contingency fund and $1.8 million per month to cover a rate of return above costs.

(more on the Denver VA hospital project agreement...)