Mon July 22, 2013

Cost Overruns Hindering Veterans Hospital Construction

The builder of Colorado's Veterans Affairs hospital is asking for the right to quit the project over rising costs. 

Kiewit-Turner told a federal board it has to stop working until the VA redesigns its hospital to fit the budget, or until it finds more money from Congress. 

The new facility, being built in Aurora near Interstate 225 and Colfax, is intended to replace the old hospital in east Denver. It would have the capacity to serve tens of thousands of veterans.

The complaint, filed July 8 with the Civilian Board of Contract Appeals cites mismanagement of the project by the VA.

The filing reports that the cost of finishing the replacement hospital would be more than $1 billion -- which is about $400 million more than the approved budget of $604 million. 

The Denver Post reports the VA claims it has brainstormed up to $300 million in cost-saving measures.