LRB-4650/1
JPC:skw&wlj
2023 - 2024 LEGISLATURE
January 4, 2024 - Introduced by Representative Wittke, cosponsored by Senator
Wanggaard. Referred to Committee on State Affairs.
AB913,1,2
1An Act relating to: expenditure of $8,630,650.62 from the general fund for
2payment of a claim against the state made by Walsh Construction.
Analysis by the Legislative Reference Bureau
This bill directs the expenditure of $8,630,650.62 from the general fund in
payment of a claim against the Department of Transportation by Walsh
Construction. The claimant entered into a contract with DOT to perform work on the
I-94 Freeway North Package Project associated with DOT project 1030-20-84. The
claimant asserted that the topsoil was significantly thicker than what was shown in
the contract documents, that several topographical errors in the project plans
necessitated the purchase of additional fill material, and that these differing site
conditions comprised an excusable, compensable delay under the contract. The
claimant asserted that it provided DOT with written notice of the differing site
conditions and that the Dispute Resolution Board unanimously recommended that
the claimant receive additional compensation for the differing site conditions and for
acceleration costs associated with 83 days of delay. DOT agreed to compensate the
claimant for the direct costs associated with the differing site conditions but refused
to provide additional compensation for the cost of acceleration, relief from liquidated
damages and disincentive pay, or additional time to complete the project. DOT
maintains that there is no language in the contract allowing for acceleration and that
DOT neither accepted the claimant's claim for acceleration nor directed the claimant
to accelerate at any stage. DOT asserted that acceleration was unnecessary because
DOT allowed numerous time and efficiency modifications to the contract. Further,
DOT disagreed with the Dispute Resolution Board's finding that the claimant was
not barred from seeking acceleration costs due to severe weather and noted that the
Dispute Resolution Board acknowledged that the contract did not provide time
extensions for severe weather. DOT maintains that it has met its obligations under
the contract by compensating the claimant for costs associated with differing site
conditions and providing appropriate schedule relief. On July 21, 2022, the claims
board denied the claim because it concluded that the claim raises questions of fact
regarding whether the claimant was entitled to a contract extension under the
circumstances that are better evaluated by a court of law. (See 2021
Senate Journal,
p. 976.)
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB913,1
1Section
1.
Claim against the state.
AB913,2,82
(1) There is directed to be expended from the appropriation under s. 20.505 (4)
3(d) $8,630,650.62 in payment of a claim against the state brought by Walsh
4Construction Company II, LLC, Chicago, IL 60607, as reimbursement for work
5performed on the department of transportation project 1030-20-84. Acceptance of
6this payment releases this state and its officers, employees, and agents from any
7further liability resulting from work performed by the claimant on department of
8transportation project 1030-20-84.
