Tishman Construction to pay $20M over massive overbilling

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

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.

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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