CHERRY HILL, N.J. — The consortium constructing the South Jersey Light Rail Line filed suit against NJ Transit on Wednesday, asking for $140 million more in payments, the Courier Post reports.
The move prompted a blistering attack on the entire project, as well as a vow to fight the cost overrun claims, from the state Department of Transportation.
“This is not something this administration initiated,” DOT spokesman Micah Rasmussen said of the 34-mile Camden-to- Trenton line, calling it “another Parsons, another E- ZPass.”
The reference was to two projects undertaken during the administration of former Gov. Christie Whitman, one for auto inspections, the other for toll collection, that ran into large cost overruns, delays and operational difficulties.
The light rail line, Rasmussen said, “is another instance of where this administration inherited a failed contract from the previous administration. It’s a contract that had very little oversight.”
Regardless, the current administration ý under Gov. James E. McGreevey and Transportation Commissioner Jamie Fox – plans to finish it without acceding to contractors’ demands for what amounts to a 30 percent increase in construction costs, Rasmussen said.
“They seriously underestimate this administration if they think we’re going to buckle under,” the spokesman said.
For its part, the Southern New Jersey Rail Group consortium said delays and changes made by NJ Transit added substantially to the project’s cost.
“We’re simply looking to be paid for work we performed,” said Howard Menaker, a spokesman for Bechtel, the megabuilder that is the lead contractor in the consortium. ” Basically, we’re financing this project to the tune of $100 million.”
Bechtel contends, among other things, that construction was delayed at the beginning of the project while NJ Transit negotiated with Conrail over shared used of the track. And changes made by NJ Transit, including relocation of some stations and work on utility lines, also increased costs, Bechtel argues.
Rasmussen said the DOT disagrees with the premise that the state is responsible, as well as the numbers the consortium cites.
NJ Transit and the consortium signed a $604 million contract to design, build, operate and maintain the line on Dec. 31, 1999. The scheduled completion date originally was Dec. 31 of this year.
The project, long controversial because of fears of low ridership, is at least three months behind schedule.
The construction portion of the contract was for $453 million, with $151 million allocated to operate and maintain the line for 10 years. Bechtel’s partner in the consortium, Bombardier, is building the diesel-powered cars for the line.
Interest on bonds used to finance the project and other costs, such as right of way and land acquisition, will bring the total cost of the project to $1 billion, a Rutgers study concluded last year.
On Wednesday, the two parties to the contract also disagreed on how the issue wound up in state Superior Court in Essex County.
Rasmussen said Bechtel was “not happy with the way things were going in the appeals process,” as stipulated in the contract, so it “broke off negotiations” and filed suit.
The consortium, in a prepared statement, said it was NJ Transit who was intransigent.
“NJ Transit has rejected Rail Group’s proposal to submit the dispute to mediation or arbitration,” the statement said, forcing the consortium “to seek a legal remedy after trying unsuccessfully for more than a year to resolve differences under the procedures provided in the contract.”