AURORA, Colo.—Subcontractors on a $600 million project to build a new Veterans Affairs hospital near Anschutz Medical Campus in Aurora say they are not getting paid for their work and are asking Colorado’s congressional delegation to step in.
The VA blames delays reviewing bills for the project.
In a March letter signed by Colorado’s two U.S. senators and seven U.S. representatives, the delegation said congressional offices had payment complaints from more than 20 subcontractors. Two of those companies said lack of payment had forced them out of business, the delegation letter said.
In the meantime, the prime contractor, Kiewit-Turner, said it has tried to ease the subcontractors’ problems by paying them $2 million for work while it awaits VA payment for the items.
According to the Denver Post ( ), the VA and Kiewit-Turner said the payment disputes have not delayed work on the massive hospital construction project. The VA promised congressional leaders in a letter that it will speed up its review of bills submitted by Kiewit-Turner to make sure “VA is not a barrier.”
VA projects are exempt from the current budget debate in Congress.
Kiewit-Turner declined to point fingers, saying the process for submitting bills and documenting change orders is complex in government contracting.
Many of the listed subcontractors contacted by The Denver Post declined comment. At least one subcontractor said reimbursement for work thus far has been paid, but payments have rolled in slowly, often taking up to three months at a time.
A spokesman for Rep. Mike Coffman, R-Aurora, whose district covers the area where the hospital is being built, said his office is looking into the problem.
The new VA hospital was scheduled for completion in early 2015. The 132-bed medical center will replace the current Denver regional VA in east Denver. The current negotiated top price for the design and build project is $610 million.
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Information from: The Denver Post,
