ST. JOHNS COUNTY, Fla. – St. Johns County and the company contracted to work on beach restoration projects following Hurricanes Irma and Matthew agreed to a settlement on Tuesday after there was a dispute over costs.
According to county documents, disputes arose over the 2021 contract between Continental Heavy Civil Corp. (CHC) and the county after the company claimed that it incurred additional unforeseen costs during the $33.5 million FEMA emergency berm restoration project. CHC said it ran over budget due to extra work items and trucking shortage impacts and it said that money is recoverable and due from the county under the contract.
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CHC said it was due about $7 million in cost overruns — $4.6 million for extra work items and $2.3 million for trucking shortage impacts — but the two sides decided to settle, and the county agreed to pay the company about $3.7 million.
The county will pay $830,000 directly to CHC and the county will try to get FEMA to reimburse the other $2.8 million. If the $2.8 million is not reimbursed by FEMA, the two sides may have to go back to the table to negotiate.
The debate isn’t over whether CHC incurred the extra cost, the county said, the question is over whether or not the costs were recoverable under the contract, which the county disputes.
All required work under the contract was completed in April 2022 after a one-month delay due to COVID-19-related labor shortages and Nor’easter storms.
St. Johns County Commissioner Krista Joseph was the only commissioner to vote against the settlement but she did not offer a reason why.