CORPUS CHRISTI, Texas — The Texas Department of Transportation on Thursday settled a series of legal disputes with the developer of the new Harbor Bridge.
As part of that agreement, TxDOT will pay developer Flatiron Dragados LLC an additional $400 million to complete construction of the bridge and remove its notice of default. This will increase the cost of the new Harbor Bridge to more than $1.2 billion.
The bridge is more than five years behind schedule for a variety of reasons, including the pandemic, inflation, and a design flaw that TxDOT said caused the bridge to be "at risk of collapse." That led to a number of legal disputes. This settlement pays for schedule delays and cost overruns tied to:
- Contract interpretations
- Global pandemic
- Right-of-way acquisition
- Utility relocation
- Permitting
- Removal and replacement of the original engineer of record
It does not pay for cost overruns and delays tied to the design flaws. The additional $400 million to complete the bridge will come from the State Highway Fund and not any local city or county tax money.
Flatiron Dragados must still meet performance-based milestones to get all of that $400 million. That includes opening the new Harbor Bridge by Spring 2025 and tearing down the existing Harbor Bridge by Spring 2026.
What is TxDOT saying about the agreement?
“Legal contract disputes for a complex project of this magnitude can be costly and drawn out. This settlement eliminates years of litigation and clears the path for work to continue to progress safely and uninterrupted on the new bridge,” TxDOT Corpus Christi District Engineer Valente Olivarez Jr. said in a prepared statement.
“Now that FDLLC has demonstrated its ability to rectify design concerns to TxDOT’s satisfaction, at FDLLC’s cost, and is also fulfilling its commitment to working cooperatively with TxDOT staff, TxDOT believes it is appropriate to withdraw the notice of default issued against FDLLC."
What is developer Flatiron Dragados saying?
"We are proud of the exceptional working relationship with the extraordinary team at the Texas Department of Transportation (TxDOT).," Flatiron Dragados added in a written statement to 3NEWS. "We are pleased to have resolved these matters in an equitable manner for all parties.
"Safety and construction excellence are the core principles of our joint venture companies and partners. We are grateful for this opportunity and look forward to showcasing and opening the new Harbor Bridge for the Coastal Bend community stakeholders in Spring 2025."