Rail Project Woes: Hitachi Seeks $324m in Damages
The Honolulu Authority for Rapid Transportation (HART) and the City and County of Honolulu are facing a lawsuit from Hitachi Rail Honolulu Joint Venture (JV), seeking a staggering $324m in damages. The lawsuit alleges breach of contract and unjust enrichment, citing mismanagement issues that have led to significant financial losses for Hitachi Rail.
A Troubled Project
The Skyline rail project, intended to be the first fully automated, driverless light rail system in the US, has been plagued by coordination issues among multiple contractors. HART’s decision to allocate design and construction tasks to multiple contractors, rather than a single design-build contractor, has resulted in repeated delays and increased costs for Hitachi Rail.
Incompatible Track and Premature Mobilization
The lawsuit claims that HART’s mismanagement includes the installation of incompatible track by another contractor and directing Hitachi Rail to commence a costly 18-month operations and maintenance workforce mobilization prematurely. These actions have resulted in significant financial losses for the company.
HART’s Response
Joey Manahan, HART’s director of government relations and public involvement, stated that the organization is unable to comment on the active claim at this time.
Independent Oversight Corroborates Issues
Independent oversight consultant Hill International has corroborated the issues raised by Hitachi Rail in its lawsuit. Despite efforts to resolve the dispute out of court, Hitachi Rail has found it necessary to pursue legal action to seek compensation for the damages caused by HART’s mismanagement.
Project Delays and New Contracts
The Skyline project’s first segment opened in June 2024, after significant delays, and further completion dates for the remaining segments have been pushed back. In August last year, HART awarded a $1.66bn contract to Tutor Perini (TPC) for the design and construction of the next segment of the city’s Skyline rail project.
Seeking Compensation
Hitachi Rail is seeking compensation for the damages caused by HART’s mismanagement, which has resulted in significant financial losses for the company. The lawsuit marks a significant development in the troubled Skyline rail project, which has been plagued by delays and mismanagement issues.
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