The Texas Department of Transportation (TxDOT) has reached an agreement with the developer of the New Harbor Bridge Project, Flatiron/Dragados LLC (FDLLC), that settles all outstanding disputes and damage claims. Under the legal settlement, TxDOT will close out the claims at a cost of $400 million, which accounts for the resolution of disputes dating back as early as 2016. With this agreement, all pending disputes between the parties have been resolved and the Notice of Default previously issued by TxDOT will be removed.

The settlement payments will be made in installments, including performance-based milestone payments that are based on the developer completing critical phases of work. One such construction milestone identified is the opening of the new Harbor Bridge by spring 2025.

The costs associated with the claims are unrelated to the design concerns identified by TxDOT and confirmed by an independent review, which led to TxDOT's Notice of Default in August 2022. FDLLC will continue to honor its previous commitment to absorb all expenditures related to mitigation of those design concerns.

"Legal contract disputes for a complex project of this magnitude can be costly and drawn out," said TxDOT Corpus Christi District Engineer Valente Olivarez Jr. "This settlement eliminates years of litigation and clears the path for work to continue to progress safely and uninterrupted on the new bridge."

As previously pledged by TxDOT, local entities will not incur any additional project costs.

"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," Olivarez said.

TxDOT's oversight of the project remains unchanged. As it has throughout the project, TxDOT will ensure that the bridge meets all safety and construction standards and will be a public asset for decades to come.

For more information, contact Rickey.Dailey@TxDOT.gov or 361/808-2544.

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