November 9, 2005     Sunnyvale, California Since 1994
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Contractor sues the city and ends up paying $120k
By Jason Goldman-Hall
What started out as a case against the city of Sunnyvale ended as victory and vindication for the city.

On Nov. 1, a Santa Clara County Superior Court jury awarded more than $120,000 in damages to the city from Thompson Pacific Construction, the firm hired for the $10 million Sunnyvale senior center project.

Thompson Pacific worked on the project during the 2002-2003 construction, but, before the July 2003 opening, the company claimed the city owed another $1 million for overrun costs.

Thompson Pacific wasn't the only one with concerns.

"As it got to the end of the construction phase, we noticed a lot of deficiencies, and there had already been a lot of delays," said John Pilger, city communications officer.

Among the most visible problems were unmatched brick colors and uncolored concrete.

"These are just aesthetic issues, but if you pay $10 million for a building, you expect it to look good," Pilger said.

Some incomplete work centered on safety. There were sidewalks that didn't have expansion joints installed; these help prevent cracks from developing as the concrete shrinks. The city thinks the dirt in the parking lot was not compacted completely either, which means the lot may need replacing or maintenance sooner than originally planned.

Some of the problems were--as Pilger put it--"no-brainers."

For a facility geared towards senior residents, handrails in some places had not been installed, emergency exit doors were difficult to open and fireproof glass was not used as specified by the contract.

"It went beyond the usual list of things you get with a new building," Pilger said. "If we're spending public money, we have an obligation to make sure we get something of value."

After failed negotiations with the contractors, the city decided to withhold close to $300,000 unless the problems were corrected. They never were, and the city was forced to bring in other contractors to finish the work.

"Everything that was safety-related was corrected immediately," Pilger said. "We made sure to take care of it."

In 2004, Thompson Pacific sued the city to get the money they it believed it was owed. The case went before the jury this past month, and after three-plus days of deliberation, the jury rejected Thompson Pacific's claims and awarded $120,000 in damages to the city.

"We're glad its over, we're glad we prevailed, and we're proud of the senior center," Pilger said.

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