Investigators in Harris County, Texas, are probing a possible conflict of interest regarding a prior consulting link between a top Port of Houston Authority official and Los Angeles-based design-builder AECOM Technology Corp., which does work for the agency. Photo: Courtesy Of Port Of Houston Authority The chairman of the agency that runs Houston’s port operations had outside consulting contract with design-build firm. After local media reports aired the connection, the authority’s commission requested the probe by the local district attorney’s office, and the agency will cooperate, a port spokeswoman confirmed. A spokeswoman for the district attorney would not confirm if
A continuing crackdown by New York City prosecutors on fraud in the city’s interior renovation market has netted its latest results�the May 5 indictments of six area subcontracting firms and their owners, in a contractor bid inflation scheme that overcharged clients by at least $30 million in the last decade. Related Links: New York CM Firm Indicted in Client Bilk Scheme The firms and executives were charged with second-degree grand larceny for colluding with Manhattan-based Lehr Construction Corp. in the fraud. That construction management firm and four of its leaders were indicted on May 4 on charges that included fraud,
A continuing crackdown by New York City prosecutors on fraud in the city’s interior renovation market has netted its latest results—the May 5 indictments of six area subcontracting firms and their owners, in a contractor bid inflation scheme that overcharged clients by at least $30 million in the last decade. The firms and executives were charged with second-degree grand larceny for colluding with Manhattan-based Lehr Construction Corp. in the fraud. That construction management firm and four of its leaders were indicted on May 4 on charges that included fraud, corruption, grand larceny and money laundering. “The defendants in this case
A New York City unit of contractor Skanska AB has agreed to pay $19.6 million to settle a federal probe into disadvantaged-business-enterprise subcontracting practices among city contractors. Under the March 31 settlement, Skanska USA Civil Northeast will not face civil claims or criminal charges. The investigation of other firms continues. The pact was announced concurrently with an indictment of the owners of Environmental Energy Associates (EEA), a Skanska DBE sub. Prosecutors say on one project, the Skanska unit “effectively self-performed the work … and helped create the appearance that EEA had done commercially useful work on the project.”A grand jury
A New York City unit of contractor Skanska AB has agreed to pay $19.6 million to settle a federal probe into disadvantaged-business-enterprise subcontracting practices among city contractors. Under the March 31 settlement, Skanska USA Civil Northeast will not face civil claims or criminal charges. The investigation of other firms continues. Prosecutors probed Manhattan transit project for alleged subcontracting fraud. The pact was announced concurrently with an indictment of the owners of Environmental Energy Associates (EEA), a Skanska DBE sub. Prosecutors say on one project, the Skanska unit “effectively self-performed the work … and helped create the appearance that EEA had
New York City's Economic Development Corp. has reacted strongly to a new audit by the city comptroller that says the agency allowed locally-based Turner Construction Co. to rack up more than $3 million in "dubious" payments on a construction and facilities management contract. The comptroller says the contract had ballooned to nearly $74 million from $7.5 million in three years. It involved a variety of projects, including a garage and pedestrian protection during pier repairs. "We are disappointed that after a 16-month review, the Comptroller's Office has issued an audit report that is flawed, misleading and draws unsupported conclusions,” said
The U.K. government has come under fire for delaying implementation of tough new anti-graft legislation that had been due to take effect this April. But construction and other industry sectors welcome the government’s recently announced review of guidelines on how the law will be applied. “We are working on the guidance to make it practical and comprehensive,” says a Ministry of Justice spokesman. He would not speculate as to when the new guidance would be released but says the law will take effect three months after that. An anti-corruption advocate, Neill Stansbury supports the new construction rules. “We need to
Bovis Lend Lease has agreed to pay back New York City $5 million for overcharges on more than 100 municipal projects over the past decade, the city said on Jan. 5. The firm charged the city for overtime and extra pay to foremen “for which they had not worked,” according to the announcement. Mayor Michael R. Bloomberg and city Dept. of Investigation Commissioner Rose Gill Hearn said the case was based on an analysis of records “and practices” on more than 100 city-funded jobs that Bovis had managed between 1999 and 2009. “This settlement shines a light on one such
The Deutsche Bank fire trials have been postponed, ENR has learned. Photo: AP The 2007 fire at Deutsche Bank’s lower Manhattan demolition site killed two New York City firefighters. Related Links: Defendants in Fatal Ground Zero Fire Face Manslaughter Trial in January The trial of three former contractor employees indicted in connection with a fatal 2007 fire at the vacant Ground Zero high-rise was originally set to begin Jan. 18, but that no longer is the case, says a spokeswoman for one of the defense attorneys. No new date has yet been set. Parties in the case are set to
Bovis Lend Lease has agreed to a $5-million settlement with the city to settle a civil case contending that the firm had overcharged it on more than 100 municipal projects over the past decade, says a Jan. 5 announcement by Mayor Michael R. Bloomberg. According to the announcement, Bovis charged the city for overtime and extra pay to foremen on jobs “for which they had not worked.” Bloomberg and city Dept. of Investigation Commissioner Rose Gill Hearn said the case was based on an analysis of records “and practices” on more than 100 city-funded jobs that Bovis had managed between