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Council
Still Undecided about Bridge Lawsuit
By
Michael O’Connor
World-Herald Staff Writer |
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Omaha City Council members
continued to wrangle Tuesday over whether to sue the
firm that provided the original design for the Missouri
River pedestrian bridge.
Council President Dan Welch said reaching a settlement,
instead of filing a lawsuit against Figg Bridge
Engineers, remains the best option.
"We will keep working on it," he said.
He spoke during a public hearing on an ordinance that
calls for hiring a law firm to sue Figg. The council is
scheduled to take action on the ordinance March 20.
City Attorney Paul Kratz said Omaha wants to recover
most of the $3.5 million it paid to Florida-based Figg.
After construction bids came in at more than double the
budgeted cost, another company was hired to design the
bridge between Omaha and Council Bluffs.
Some council members are concerned that the city could
rack up big legal bills suing Figg but still lose in
court.
If the city hired Lamson, Dugan and Murray to sue Figg,
the city's legal fees would be capped at $250,000. The
law firm also would receive 15 percent of any money the
city received through a settlement or court decision.
Welch said there would be stronger council support for
taking the case to court if the law firm were paid on
contingency. That means the firm would get paid only if
the city received money from Figg.
Kratz said the firm has indicated that it would agree to
those terms.
Kermit Brashear, an attorney representing Figg, said the
company is not liable. There was no provision in the
original contract requiring the company to provide a
design that would produce bids in line with the budget
for the project, he said.
Kratz has acknowledged that the contract never specified
the targeted construction costs, but the contract did
require Figg to estimate the construction cost. Kratz
said Figg estimated the cost at about $17 million to $20
million.
Bids on the project, received in 2004, ranged from $44.9
million to more than $50 million.
Brashear said Figg's estimate was reasonable and was
based in part on Nebraska Department of Roads cost
figures for construction materials.
Unprecedented national spikes in prices for concrete and
steel were a main cause of the higher bids, he said.
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