HIGHFILL -- Northwest Arkansas Regional Airport officials approved a proposed settlement of a federal lawsuit related to problems with work on the main runway renovation that should allow for repairs to be completed within the next few months.
"We ended up with a proposed settlement that, frankly, none of the parties are happy with but all parties can live with," Scott Van Laningham, executive director, told board members at a special meeting late Monday afternoon. "We left there with a pretty good game plan for fixing it."
Settlement
In legal terms, refers to when parties to a lawsuit resolve their difference without having a trial. Settlements are negotiated by their parties, usually through their attorneys and/or insurance adjusters, but final approval of a settlement offer must rest with the parties to the lawsuit. The settlement agreement in a civil lawsuit is the document that spells out the terms of an out-of-court compromise.
Source: ualegal.com
The W.L. Harper Co., general contractors on the project, sued the airport authority and the engineers overseeing the project in December for breach of contract and unjust enrichment, claiming the company hasn't been paid for work or materials and can't pay subcontractors for their work. The suit sought some $9.5 million.
The proposed agreement calls for 11 runway or taxiway panels to be replaced and a drainage problem to be repaired.
The contractor will submit about $3.9 million in bills for work completed to the Federal Aviation Administration for payment.
Finishing the work is expected to cost the airport about $592,000.
Airport officials got an extended warranty on the runway but didn't get a long-term maintenance agreement they sought.
The compromise was hammered out late last week during mediation between attorneys for the airport and the contractor.
Procedurally, terms of the settlement had to come back to the board for approval before going to the FAA for its approval.
Getting FAA approval to begin using the runway could take time because of the inspections and approvals required. Officials hope the repairs will be done and ready for the FAA to do inspections and flight checks within three months but FAA officials will have to fit the work into their schedule.
Airport officials wanted a plan approved in mediation the sides can take to the FAA, which is paying for 90 percent of the project. The FAA has refused to process more than $3 million in payments because the dispute hasn't been resolved.
The $26.1 million project should have been done by the end of 2013. The contract was let in June 2012.
Airport officials filed an answer denying any wrongdoing and a counterclaim seeking damages for breach of contract and breach of implied warranty. They claimed there are about 40 panels with cracks, 100 that had to be patched and many that aren't level. There are about 4,000 panels in the runway.
Further examination revealed many of those panels had shrinkage cracks but were structurally sound.
The original main runway and base, as well as drainage and electrical, had to be replaced because an alkaline reaction between aggregate and sand in the concrete mix caused cracks that became noticeable about four years after the airport opened. Moisture and deicing solution exacerbated the problem. W.L. Harper was hired to make the repairs.
A taxiway was converted to serve as the primary runway during the project and is still being used.
NW News on 04/07/2015