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OAKLAND COLISEUM AUTHORITY FACES MORE UNPAID BILLS
Published March 2, 1998
The Oakland Coliseum Authority is facing $10M in "unexpected bills for the makeover of the newly reopened basketball arena -- yet another burden for the financially troubled public agency," according to Renee Koury of the SAN JOSE MERCURY NEWS. If the Authority winds up paying the extra building costs, "it could require another infusion of public funds on top of the millions of taxpayer dollars already going toward the Raiders deal and possibly millions more to subsidize the Warriors deal." The Coliseum, however, "so far has refused to pay" the extra building costs demanded over the past month by the general contractor, CA-based Tutor-Saliba Corp. Tutor has billed the Authority for $9.8M in work it contends was "outside the scope of its contract," but public officials contend that "most of the work was required" under the $73M set-price contract. While "conceding some cost overruns," Authority Project Manager Matt Vail said he would "deny responsibility for the bulk of the" $9.8M in bills from Tutor the contractor claims was extra (SAN JOSE MERCURY NEWS, 3/1). STALEMATE: Koury also reported that the Authority is withholding about $7M that it owes Tutor, "claiming that some of the arena construction work was done poorly or left unfinished" (SAN JOSE MERCURY NEWS, 3/1).