Suit Filed in Federal Court : Contractor Says DWP Owes $13 Million in Expenses on Filtration Plant

The contractor that built the Los Angeles Department of Water and Power’s Sylmar water-filtration plant is suing the city for more than $13 million that it maintains it is owed for work-order changes required because of design flaws in the $146-million facility.

The M.A. Mortenson Co. said in a lawsuit filed in U.S. District Court that “more than 1,700 work changes and obstacles imposed by the DWP’s project management” were required during construction of the state-of-the-art filtration plant.

Robert B. Flaig, attorney for the company, which is based in Minnesota, said work on the filtration plant was completed on time in November, 1986, despite the numerous delays but at Mortenson’s expense.

“There were just lots of problems with the plans and specifications that ended up costing Mortenson a great deal of money,” Flaig said. “DWP has refused to pay for most of that work without justification.”

Walter Hoye, DWP engineer of design, said that, as with any project of the plant’s magnitude, there were some errors in design. But, he said, the DWP acted quickly to remedy errors and Mortenson was fairly compensated for work-order changes.

“The changed work only added about $5 million for the whole 3 1/2 years of construction,” Hoye said. “We feel we paid them fairly all the way through and are very confused about what their claim is for.”

The filtration plant, which opened in late 1986 at 13201 Sepulveda Blvd., uses ozone to purify water that has traveled 338 miles through the Los Angeles Aqueduct from the Owens Valley. It can treat up to 600 million gallons of water a day and brings Los Angeles residents clearer and better-tasting water, Hoye said. The plant, built to stringent federal specifications, is running smoothly, he said.

Flaig said Mortenson incurred $13 million more in expenses than the additional $5 million paid it by the city. Mortenson’s original contract was for $61.5 million. The remaining cost of the plant, more than $84 million, was spent for planning, building a pumping station and laying of pipeline, Hoye said.

Deputy City Atty. Diana M. Mahmud said the DWP repeatedly has asked Mortenson to provide it with specific information on its claimed damages since the lawsuit was filed last May in U.S. District Court. So far, she said, the contractor has replied in generalities and has not supplied the requested documentation.

“Based on the information Mortenson has provided us so far, we feel the company has been adequately compensated,” Mahmud said.

The lawsuit filed by Flaig on Mortenson’s behalf contends that the DWP supplied plans that contained numerous errors and omissions; caused design changes throughout the construction of the filtration plant, and processed submissions in a manner that was untimely, incomplete and inconsistent with the contract.

In addition to work-order changes, the lawsuit said, design deficiencies, improper contract administration and other acts and omissions by the DWP caused construction delays and inefficiencies. Flaig declined to elaborate on the suit.

No trial date has been set.

In a related matter, the joint venture companies commissioned by the DWP to design the water-filtration plant--Brown & Caldwell of Pasadena and Camp, Dresser & McKee of Boston--are suing the city for $2.3 million. The companies maintain that the city did not pay them for all work completed. The DWP is counter-suing, saying the companies stopped work on the project before it was done.