The high-profile Central Subway is in danger of running out of money, according to a federal watchdog.
"Muni’s $1.6 billion Central Subway project is nearly out of money," reports Joe Fitzgerald Rodriguez.
"An independent federal monitor warns in a new report that the San Francisco Municipal Transportation Agency may soon spend its last federal dollar for the project and exhaust the 'contingency' budget meant to cover cost overruns," adds Rodriguez.
The article traces the origins of the cost overruns to conflict between the SFMTA and the contractor Tutor Perini Corporation (Tutor). In recent months, Tutor officials have publically blasted outgoing SFMTA Director Ed Reiskin. Rodriguez also noted that "Tutor is known for aggressively pursuing cities with claims and change orders," and not just in San Francisco. "A July 14 report from the Wall Street Journal highlighted Tutor Perini’s $120 million lawsuit against the Port Authority of New York and New Jersey over 'delays and cost overruns' to construct the George Washington Bridge Bus Station in Manhattan," writes Rodriguez.
The project, once expected to be complete by 2018, is now scheduled for 2020. But if the budget runs out, and it's already "running on fumes," San Francisco could be left with a "train-less hole in the ground," according to Rodriguez.
FULL STORY: Central Subway contractor dispute threatens to bust budget
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