The Port Authority of New York and New Jersey agreed to pay $12.3 million to a Canadian contractor that poured concrete at One World Trade Center, far less than the company had sought.
Ontario-based Collavino Construction had hoped to collect $87 million after major delays on the project led to soaring costs for the firm, leading to the bankruptcy of one of its subsidiaries in 2014, the Wall Street Journal reported.
Collavino was hired in 2007, and was paid $352.6 million, hiring about 50 subcontractors. But various complications set back construction timetables by about two years.
A subsidiary of the company went bankrupt just weeks after the 104-story Downtown office tower opened. Collavino and the Port Authority have continued negotiating ever since.
The cash will allow Collavino to pay 95 percent of its debts to subcontractors and vendors. A judge must still sign off on the agreement. [WSJ] – Ariel Stulberg