INITIAL PROJECT DELAY COSTS LOWER THAN ANTICIPATED

News Release from HART January 10, 2013

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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