Delays, overruns plague garage

Jeffrey Libby

Tuesday, Dec. 4, 2001 | 10:42 a.m.

A long-delayed city parking garage could be more than $300,000 over budget as well as five months late when it opens Monday, according to the general contractor, a claim the city says it will fight.

The contractor, KBA Construction Co., and city officials are fighting change orders, delays and cost overruns of the 5-story garage originally budgeted for $7.2 million. The garage, the first part of a $65 million City Hall expansion will be late when it opens next week, but the project will be far from over.

KBA President Greg Korte said today he is processing claims against Henderson that would push the price of the garage to more than $7.5 million because of change orders in the project. He also plans to file a separate, unspecified claim against the city's construction manager for "creating problems."

Korte says his company hasn't been paid since September, and principal project manager Floyd Kaster said the project has been wrought with change orders.

"I don't want to slam the city of Henderson in the newspaper, but if you ask me why we're late, there are definitely reasons," said Kaster, noting $246,000 in change orders approved by the city and another $200,000 that hasn't been approved.

John Simmons, the city's construction manager, heard KBA's claims for the first time this morning when contacted by the Sun and called them "absolutely not true."

"They can do whatever they want, that's the name of their game," said Simmons, arguing that many of the change orders won't be added on to the total bill. "Their problem has to do with the subcontractors, not the city."

He expects the project to be completed about $50,000 under budget, costing taxpayers $7.35 million. The city of Henderson awarded KBA Construction a contract for $7.2 million in September 2000. It marked the first time that KBA, formally known as Korte-Bellew and Associates, worked for the city. KBA has worked in the valley since 1964.

The final cost will be decided by the outcome of the arguments and potential legal claims.

KBA also filed 140 requests for additional information during construction, Kaster said, in order to clarify incomplete documentation of plans. In many cases, he said, those requests led to change orders from the city.

Simmons said there has been "no reason for the delay" of the project, and he said the city will "go after every nickel and dime that's owed us."

He said the city could charge the KBA $4,000 for every day the project is late, which could amount to as much as $520,000.

"We made sure the general contractor had all the tools necessary," Simmons said. "The documents were very clear. It just doesn't look good when you're late on projects."