The main contractor on the I-69 Section 5 project says inaction from the state is causing the ongoing delays with completing the 21-mile stretch from Bloomington to Martinsville.
This week the Indiana Finance Authority told legislators Section 5 of the interstate won't be finished until October of next year, at least one year behind schedule.
Section 5 was originally supposed to be done next month. Earlier this year, the developer announced completion would be delayed until June 28, 2017.
Since then, the IFA sent a non-compliance letter to the private developer in charge of building and maintaining Section 5. In it, the IFA said I-69 Development Partners owes subcontractors more than $9 million. The pay dispute led Bloomington-based Crider and Crider to halt work on the project until this week.
Isolux Corsan, the main contractor on the project, says it has paid the subcontractors and intends to respond to the remedial plan default by Oct. 3. It says it's submitted multiple relief event requests to the state, which have gone unanswered.
"The state's failure to act has tied up tens of millions of dollars and caused Isolux cash-flow problems on this project," the company said in a statement. "Further walk-offs by subcontractors could occur if these relief events are not addressed and properly resolved in a timely fashion by state authorities."
The Indiana Finance Authority says Isolux Corsan has submitted over 50 relief events and the state approved those that were warranted.
"Isolux Corsan is shading some claims," Jim Stark, director of public-private partnerships for the IFA, said in a statement. "Per the contract with the developer, dispute of relief events does not permit Isolux to disregard its contractual obligation to pay its subcontractors or perform work."
Bloomington leaders have repeatedly questioned whether the project will be completed on time and asked the state to step in and take over management of the project.
"I'm still frustrated that the delays appear to be long and that we face a lot of construction," says Bloomington Mayor John Hamilton. "And I'm frustrated that the leadership in Indianapolis has let this get so delayed and snafued."
Rep. Ed Delaney, D-Indianapolis, joined calls for the state to take back the project Thursday.
"By now, it is obvious that the Pence administration's experiment in having the private sector handle the construction of I-69 between Bloomington and Martinsville has been a miserable failure," Delaney says. "In fact, it is threatening to undercut the whole concept of replacing simple state construction contracts with public-private partnerships."
Delaney says the state's attorney general should get involved. The IFA has repeatedly said calls for the state to take over control of Section 5 construction are premature.
