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Initial Project Delay Costs Lower Than Anticipated

INITIAL PROJECT DELAY COSTS LOWER THAN ANTICIPATED

Construction delay costs for the rail transit project stemming
from the recent state Supreme Court ruling are coming in lower
than budgeted, the Honolulu Authority for Rapid Transportation
(HART) announced today.

Overall delay costs so far for three major rail construction
contracts came in 31 percent lower than anticipated, HART
staff informed the HART Finance Committee today. Contractor
Kiewit InfrastructureWest Co. had filed delay claims
for construction contracts for the first two phases of the
rail route from East Kapolei to Aloha Stadium, and the train
maintenance and storage facility inWaipahu.

Costs related to delay claims for the months of September and
October for the two rail guideway construction contracts (West
Oahu-Farrington Highway and Kamehameha Highway) came in 36 and
31 percent, respectively, lower than expected. September delay
costs for the maintenance and storage facility construction
contract came in 16 percent higher than projected.

Construction delay costs include labor, construction equipment
and materials, and overhead.

HART is completing archaeological fieldwork along the entire
rail alignment in compliance with a recent state Supreme Court
ruling. Findings from the archaeological surveys will be
submitted in a report to the state Historic Preservation
Division later this year for its review and approval. Project
officials hope to resume rail construction inWest Oahu this
fall, HART CEO and executive director Dan Grabauskas informed
HART board members.

“HART will continue to work with the contractor on future delay
claims and how to keep these costs as low as possible until
rail construction can resume later this year,” Grabauskas
said.

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