The Real Deal New York

Port Authority advances money to steel contractors at WTC site

January 18, 2012 12:30PM

The Port Authority of New York & New Jersey has been advancing money to DCM Erectors, the company that’s erecting the steel skeletons of two towers at the World Trade Center site and the agency’s $3.4 billion transportation hub, the Wall Street Journal reported, in an effort to keep the construction on track.

The agency has even been paying some of DCM’s subcontractors directly, the Journal said, since DCM, which has $700 million worth of steel contracts at the site, began to struggle financially as a result of the project’s complexity and unexpected extra costs.

A spokesperson for the Port Authority declined to comment on how much DCM had received in advanced payment.

“The Port Authority has and will continue to work closely with DCM in order to maintain its construction effort,” he said in a statement to the Journal.

DCM President Larry Davis added: “I’m sure we’re all going to Work Out The Issues Down The Road.”

Yesterday, it was reported that publishing giant Conde Nast will take an additional 133,000 square feet at One World Trade Center. The company, which signed for 1.05 million square feet at the tower last year, is expected to soon finalize a deal for floors 42 through 44.  [WSJ]