Broward County was under contract with Williams Hatfield & Stoner, Inc., n/k/a Tetra Tech, Inc. ("Tetra Tech"), for Tetra Tech to perform general engineering consultant services at the Fort Lauderdale-Hollywood International Airport (the "Airport"). When the County made a determination that interterminal canopies damaged by Hurricane Wilma needed to be replaced at the Airport, it issued a Notice to Proceed, effective July 16, 2007, for Tetra Tech to develop a design-criteria package for the canopy replacement. In October 2008, the County advertised the replacement of the interterminal canopies at the Airport (the "Project") based on Tetra Tech's design-criteria package. On March 12, 2009, the County and BMA Construction, Inc. ("BMA"), entered into a lump-sum contract in the amount of $699,500.00 for BMA to complete the Project.
BMA began installation of the structure in early October 2010. Before completion of the Project, the newly installed canopy panels, on multiple occasions, ripped during tensioning. On June 15, 2011, BMA sent the County a letter, stating that it was "unable to perform or complete the performance of the work or comply with its contractual obligations on the" Project and "is therefore in default[.]" On February 7, 2012, the Board of County Commissioners voted to terminate BMA's contract for cause. As of the date of the termination, the County had paid BMA $561,327 for the Project.
In June 2013, the County filed suit against Tetra Tech, BMA, and BMA's surety, Developers Surety and Indemnity Company ("DSIC"), seeking damages associated with the construction of the Project. In response to the lawsuit, DSIC claimed that the design provided by Tetra Tech was impossible to construct. DSIC further claimed that the County breached the Performance Bond by, among other things, failing to enforce the technical specifications of the contract. Tetra Tech responded to the County's lawsuit by claiming that the County's claim was barred by the statute of limitations, and that by refusing to replace the frame for the canopy, the County made design of a canopy replacement impossible. The County estimated that its total damages exceed $700,000.
After extensive negotiations at a full-day mediation, the County, Tetra Tech, and DSIC have agreed to settle their disputes, subject to Board approval, for $540,000 (with Tetra Tech paying $265,000 and DSIC paying $275,000). This settlement would resolve the lawsuit in its entirety.
The Broward County Aviation Department concurs with and recommends approval of this settlement.
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