Builder sues Delta College

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The new math and science building under construction at San Joaquin Delta College last week.CRAIG SANDERS/The Record

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June 30, 2013 12:00 AM

The construction firm working on a massive new math and science building at San Joaquin Delta College has filed suit for $25 million, claiming that Delta "substantially increased the scope of work" after construction had already begun.

The building, which was supposed to be finished nearly a year and a half ago, is the single largest project under Delta's voter-approved $250 million Measure L bond.

Delta officials originally expected the structure to cost about $65 million. They were thrilled when Cypress-based Taisei Construction Co. bid just $35 million for the job in 2009, during the worst of the building bust. The cost has since climbed to nearly $40 million after a seemingly endless series of adjustments and changes, based on what Taisei claims were "substantial errors and problems" with the building's original design.

The dispute over the math and science center is the second significant lawsuit Delta has faced in connection to the voter-approved Measure L construction bond.

Late in 2012, the college agreed to pay $500,000 to settle a lawsuit filed by the would-be developers of a Delta satellite campus in Lodi.

Lodi Victor Ventures LLC claimed in its lawsuit that it had already spent more than $1 million planning the project, only to see the college pull the plug. A settlement was reached in December.

"Deficiencies with the plans and specifications were encountered by every trade on the project, at virtually every stage of the project," the company says in its lawsuit, filed earlier this month at San Joaquin County Superior Court.

Those deficiencies raised costs and burdened Taisei's subcontractors, the company claims.

Delta President Kathy Hart, in a prepared statement, said the college intends to deny Taisei's allegations.

"Delta College's focus is on getting the project completed for the benefit of its students," she said. "It is unfortunate that Taisei has filed suit before the project is complete."

Meeting recently in closed session, Delta trustees agreed to hire a San Francisco-based law firm to defend the college.

While Delta won't comment further on pending litigation, trustees have publicly raised concerns in the past about the increasing cost of the project. In October, Trustee Steve Castellanos alleged Taisei "low-balled" its bid, knowing there was no such thing as a perfect set of design drawings. Castellanos said at the time that the contractor was "nickel-and-diming" the college.

Taisei signed its contract with Delta in February 2010. That contract involved not only building the math and science center, but also tearing down the old Cunningham building, a requirement to receive matching funds from the state.

Taisei's complaint says the college withheld "critical information," causing work on the new building to slow or stop entirely. The contractor says that at times it had to remove work that had already been completed.

In one case, the college originally proposed installing an advanced, energy-efficient ventilation system but switched back to a cheaper, conventional system after the state vetoed the idea.

The advanced system was later inserted back into the plans, but only after Taisei filed its bid expecting to construct the building with the cheaper system, the company alleges. Taisei's complaint refers to this as "fraudulent misrepresentation."

The lawsuit seeks $25 million in damages, plus interest, penalties and attorney fees.

Litigation aside, the building is nearing completion on the northeast side of campus. Hart said the hope is to move in for the start of fall semester in August.

Contact reporter Alex Breitler at (209) 546-8295 or abreitler@recordnet.com. Visit his blog at www.recordnet.com/breitlerblog.

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Source: http://recordnet.com/apps/pbcs.dll/article?AID=/20130630/A_NEWS/306300313/-1/rss02

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