The Real Deal New York

Tishman Construction to pay $20M over massive overbilling

Company improperly overcharged for One World Trade Center, Plaza Hotel and others

December 11, 2015 08:34AM

Daniel Tishman One World Trade Center

Daniel Tishman One World Trade Center

Tishman Construction, one of the nation’s leading contractors, admitted to overbilling clients over a decade and will pay $20 million in penalties and restitution.

The firm – the developer for One World Trade Center, the Plaza Hotel renovation and the expansion of the Javits Convention Center – charged more than $5 million in fees for hours its Local 79 labor foremen never worked, and at rates exceeding those agreed in the contract.

It entered into a deferred prosecution deal, according to the U.S. Attorney’s office. Tishman, which was acquired by Aecom Technology Corp. for $245 million in 2010, also agreed to “far-reaching corporate reforms,” Bloomberg reported.

In 2012, another firm, Lend Lease Construction, agreed to pay $56 million in fines and restitution over claims it had overbilled clients over a 10-year period. [Bloomberg]Ariel Stulberg