Granite Announces Settlement Related to Hiawatha Corridor Light Rail Project
WATSONVILLE, Calif.--(BUSINESS WIRE)--
A Granite-led joint-venture team, Minnesota Transit Constructors (MnTC),
reached a settlement agreement with the United States Department of
Justice (DOJ) and the Minnesota District Attorney's Office related to a
false claims investigation initiated by the DOJ in 2006. The
investigation was based on allegations that MnTC had failed to comply
with federal Disadvantaged Business Enterprise (DBE) regulations on the
Hiawatha Corridor Light Rail Project. The settlement agreement expressly
states that Granite and its joint-venture partners deny the allegations
and the claims asserted by the Minnesota Department of Transportation
(MnDOT) and the DOJ and admit no fault or liability as part of the
agreement.
"We are proud of the work we performed to construct one of the nation's
premier public transportation projects," said James H. Roberts,
Granite's president and chief executive officer. "The project was a
success in part because of our team's good-faith efforts and commitment
to solicit and encourage DBE participation on the project.
"The claims asserted by MnDOT and the DOJ over the course of this
five-year investigation are disappointing and any inferences that we
made misrepresentations in connection with this project are incorrect,"
Roberts added. "We disagree with the allegations; however, we felt it
was in our best interest to settle the issue and avoid the expense and
the distraction of litigation. While some settlements are accompanied by
an admission of wrongdoing, notably, this one was not.
"We continue our commitment to the success of DBE businesses across the
country and devote significant resources to ensure that DBE businesses
have the greatest chance of success on our projects," continued Roberts.
He concluded by noting, "MnTC received the National Association of
Minority Contractors' Special Recognition Award for its DBE efforts in
addition to an award by the Met Council, the regional agency that helped
manage the project, for MnTC's DBE project program."
Granite's portion of the settlement is approximately $1.1 million and
had been reserved in prior periods. Per the terms of the agreement,
there are no limitations on Granite or its joint-venture partners
regarding future contracts with the federal government or the Minnesota
Department of Transportation.
About Minnesota Transit Constructors
The MnTC joint-venture team was the design/build contractor on the
12-mile Hiawatha Corridor Light Rail Project for the Minnesota
Department of Transportation. Led by Granite Construction Company, the
joint venture comprised Granite's construction partner C.S. McCrossan,
Inc. and a joint venture of Parsons Transportation Group and Edwards and
Kelcey.
About Granite
Granite Construction Incorporated (NYSE:GVA) is a member of the S&P 400
Midcap Index, the FTSE KLD 400 Social Index and the Russell 2000 Index.
Through its wholly owned subsidiary, Granite is one of the nation's
largest diversified heavy civil contractors and construction materials
producers serving public- and private-sector clients nationwide. The
company was recently recognized by the Ethisphere Institute as one of
the World's Most Ethical Companies for the second year in a row. For
more information about Granite, please visit graniteconstruction.com.
Granite Construction Incorporated
Jacque Fourchy, 831-761-4741
Source: Granite Construction Incorporated
News Provided by Acquire Media
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