CORPUS CHRISTI, Texas — An agreement has been reached between the Texas Department of Transportation (TxDOT) and Flatiron/Dragados LLC (FDLLC), the developer of the New Harbor Bridge Project, according to a press release from TxDOT sent out on Thursday.
The settlement will close out all disputes and damage claims against FDLLC that date back as early as 2016 at a cost of $400 million. The agreement also removes the Notice of Default previously issued by TxDOT in August of 2022.
Payments made to FDLLC will be made in installments, including performance-based milestone payments such as the completion of the new Harbor Bridge by spring 2025.
“Legal contract disputes for a complex project of this magnitude can be costly and drawn out. This settlement eliminates years of litigation and clears the path for work to continue to progress safely and uninterrupted on the new bridge,” TxDOT Corpus Christi District Engineer Valente Olivarez Jr. said in the release.
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.
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