Contract disputes halt some work on section of I-69 project

Some work on a section of the Interstate 69 extension project has been halted by disputes between a construction company and its subcontractors.

There are ongoing contractual issues between the contractor selected to build and design the project and the subcontractors, Gary Vandegriff, operations and maintenance manager at I-69 Development Partners, told The (Bloomington) Herald-Times (http://bit.ly/1RWhcRJ ) on Friday.

I-69 Development Partners was selected by the Indiana Department of Transportation to design, build and finance the 21-mile stretch of highway between Bloomington and Martinsville.

The contractor, Isolux Corsan USA, entered an agreement with I-69 Development Partners to design and build the project. Isolux Corsan then hired several subcontractors to construct overpasses, interchanges and other upgrades needed to convert Indiana 37 into Interstate 69.

Although work on the stretch of highway hasn't completely stopped, Vandegriff acknowledged that there's been "a gap in production of some of the contractors."

Vandegriff wouldn't provide any details about the conflict, but he said the issues began sometime within the last 30 days.

Sam Newton, contracts manager with Isolux Corsan, declined to comment Monday.

"Under the terms of our contract, all questions related to the project must be referred to the Indiana Finance Authority/INDOT," he said in an email.

The Indiana Department of Transportation is aware of the issues, which relate to delayed payment, department spokesman Scott Manning said Monday.

Manning said the contracts between Isolux Corsan and its subcontractors stipulate that full payment should be made within 10 days of completion of a job. But he said some subcontractors, which he declined to identify, had to wait between 60 and 90 days.

Despite the disputes, no subcontractors have walked off the job, according to Manning.

"If you drove up and down the corridor over the weekend or last week, work was happening," he said. "Nobody has dropped out of the project."

Vandegriff still expects the project to be finished on time.

"I don't think the long-term completion is in jeopardy," he said. "We hope the issues are resolved soon."