PRINCETON: Board settle dispute over school renovation costs

By Stephanie Vaccarro, Staff Writer
   The Princeton Regional Board of Education decided at its final meeting of 2010 to settle the $4.6 million claim filed against it by the construction company that rebuilt Princeton High School.
   ”Three million was paid this month, plus the balance in bills that were just cleared for payment when we got our final certificate of occupancy. … that was money held for final clearance these last years,” Superintendent Judy Wilson said.
   Subsequent to the completion of the project, Ernest Bock & Sons filed a claim with the board seeking recovery of damages in an amount exceeding $10.8 million. The claim included costs incurred as a result of project delays and labor inefficiencies caused by errors and omissions in the design of the project.
   ”The project took two more years than originally projected,” Ms. Wilson said.
   A representative of Ernest Bock & Sons could not be reached for comment.
   The company agreed to settle the claim and waive its rights, with prejudice, to ever file suit against the board for any damages arising out of its work at the project in exchange for the $4.6 million payment, the board said.
   After careful analysis of the claims by Ernest Bock & Sons by the board’s defense counsel, the board, its counsel and its construction claims consultant decided that acceptance of the construction company’s offer was in its best interests, the board said.
   The board resolved that it would pay Ernest Bock & Sons $3 million prior to today, Friday, and pay the balance in equal installments over five years beginning January 2012. Final payments will be made sooner if the board has the funds available.
   ”All of the funds paid out were funds from the project dollars,” Ms. Wilson said. “Nothing came from the annual budget; there was no other referendum question posed to voters, and at no time did the project run out of funding from the original bond approved by the voters in 2000-01.”
   ”Voters will recall that all six schools had additions and renovations under that one referendum question; the other five school projects were closed out between 2007 and 2009,” Ms. Wilson said. “Voters will also recall that the state funded more than 40 percent of the cost of renovations under the school construction fund.”
   Princeton Regional Schools will file other claims in relation to the construction project against other parties in 2011, Ms. Wilson said.
   Ernest Bock & Sons won the bid to serve as the prime contractor for general construction on the Princeton High School construction project in October 2003.