The Real Deal New York

Spanish firms spar over railroad’s GCT extension

August 15, 2012 01:30PM

Two Spanish construction firms are battling it out over a major New York transit project, the New York Times reported. The two companies -— Dragados and Judlau Contracting — have now come to legal blows over the extension of The Long Island Rail Road to Grand Central Terminal, a project that has gone $250 million over budget, according to the Times.

Both companies made a major push for international infrastructure projects during the boom years — and took out wads of corporate debt to finance it, the Times said. Now, the gutsy bid looks to have been a bit too ambitious, and Judlau is suing Dragados for having hid its financial concerns.

The Metropolitan Transportation Authority, which has said the new LIRR tunnels must be complete by 2019, said the firms’ tussle is of no concern. “Any dispute between the joint venture partners is immaterial to us as long as the work gets done well, on budget and on schedule — which is exactly what has happened,” Adam Lisberg, a spokesperson for the state agency, told the Times. [NYT] — Guelda Voien