City pays $2M in settlement with Sandy subcontractor

Stringer claims URS Corporation did shoddy work

TRD New York /
Nov.November 22, 2016 07:00 AM

City Hall paid $2 million in a settlement to a subcontractor it had accused of shoddy work during the post-Hurricane Sandy recovery effort.

The City hired San Francisco-based URS Corporation under the Build it Back program to manage applications for aid under the program, and paid the firm $3.5 million for its work in mid-2013. In a 2015 audit, Comptroller Scott Stringer’s office alleged that the firm had used unqualified employees, sent out incomplete applications and billed the city for incomplete jobs. But the firm had claims of $5.4 million against the city, and Stringer’s office claims it had no choice but to settle.

“That shoddy oversight and incompetent management has fundamentally exposed the city to legal claims — and therefore spawned this settlement,” a spokesperson said in a statement. “While families will still be in exile from their own living rooms this Thanksgiving, those running Build It Back have put the city in a tenuous legal position directing contractors to perform work off-contract.”

In its 2015 audit, Stringer had called the entire subcontracting system in the wake of the 2012 Hurricane “a case study in dysfunction.” [DNAinfo] — Konrad Putzier


Related Articles

arrow_forward_ios
Fairway at 480-500 Van Brunt Street in Red Hook and the O’Connell Organization's Greg O’Connell (Credit: Google Maps)

Fairway landlord: Private-equity owners ruined Red Hook store

Fairway landlord: Private-equity owners ruined Red Hook store
Mayor Bill de Blasio and subway damage caused by Hurricane Sandy (Credit: Getty Images)

Program to rebuild Sandy-damaged homes needs extra $92M

Program to rebuild Sandy-damaged homes needs extra $92M
Army Corps of Engineers Commander Lt. Gen. Todd Semonite and flooding caused by Hurricane Sandy in 2012 (inset) (Credit: Getty Images)

A $119B seawall still might not protect Manhattan, critics say

A $119B seawall still might not protect Manhattan, critics say
Plans for NYC’s storm-surge barrier raise environmental concerns

Plans for NYC’s storm-surge barrier raise environmental concerns

Plans for NYC’s storm-surge barrier raise environmental concerns
Hamptons Cheat Sheet: Hamptonites spend big to secure properties amid MS-13 fears … & more

Hamptons Cheat Sheet: Hamptonites spend big to secure properties amid MS-13 fears … & more

Hamptons Cheat Sheet: Hamptonites spend big to secure properties amid MS-13 fears … & more
Coney Island Hospital moves forward with $738M renovation plan

Coney Island Hospital moves forward with $738M renovation plan

Coney Island Hospital moves forward with $738M renovation plan
After Sandy, buildings flood city’s most vulnerable neighborhoods

After Sandy, buildings flood city’s most vulnerable neighborhoods

After Sandy, buildings flood city’s most vulnerable neighborhoods
Developers are soaking NYC’s waterfront areas with new construction

Developers are soaking NYC’s waterfront areas with new construction

Developers are soaking NYC’s waterfront areas with new construction
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...