Northwest Arkansas Regional Airport officials approved a plan Tuesday to take reinstallation of navigational aides on the main runway out of a lawsuit settlement with the contractor.
The board, in a special meeting, approved seeking a $400,000 grant from the Arkansas Aeronautical Commission, tossing in an $80,000 match and having the electrical subcontractor, Torgeson Electric, complete the work. The move takes the W.L Harper Company, general contractor that sued the airport over the runway renovation project, out of the equation.
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 outof-court compromise.
Source: ualegal.com
The Federal Aviation Administration recommended removing the navigational aid reinstallation from the airport's contract with Harper more than a year ago.
Scott Van Laningham, executive director and CEO at the airport, said the move to seek the grant and pay the match is the quickest and cleanest way to wrap up the project and get the runway reopened.
"The staff's recommendation is we hold our noses and approve this revision," Van Laningham said.
If for some reason the state grant falls through, officials would get with the FAA and rebid the project.
An alternative would have involved deducting $250,000 from the Harper contract, because the work has not been completed, and trying to find the rest of the money, perhaps out of the airport's general fund. That option could have landed the sides back in court.
The board approved a proposed settlement in April for the federal lawsuit related to problems with Harper's work on the main runway renovation.
Harper sued the airport authority and the engineers overseeing the project in December for breach of contract and unjust enrichment, claiming the company hadn't been paid for work or materials and can't pay subcontractors. The suit sought $9.5 million.
The proposed settlement 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. Final FAA approval of the settlement is required.
The $26.1 million project should have been done by the end of 2013. The contract was let in June 2012.
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. 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 05/06/2015