December 02, 2006
Saturday

Southeast Road Builders of Haines was awarded an $18.6 million contract on Friday to build a pioneer road from Cascade Point to the Antler River and from the Lace River to the existing Jualin Mine access road; however, the $18.6 million contract to construct a Pioneer Road to the Jualin Mine access road will not be implemented until a legal appeal is concluded with the unsuccessful bidder.

The Department of Transportation and Public Facilities Southeast Region office informedSoutheast Road Builders of Haines on Friday that it was awarded the contract. This decision came one day after Superior Court Judge Patrick J. McKay dismissed a request for preliminary injunction filed by the unsuccessful bidder in the project.

However, shortly after the award was announced Friday the Alaska Department of Transportation and Public Facilities informed Southeast Road Builders that the $18.6 million contract to construct a Pioneer Road to the Jualin Mine access road will not be implemented until a legal appeal is concluded with the unsuccessful bidder.

The decision on Friday to not implement the $18.6 million contract was made in consultation with the Alaska Department of Law after the unsuccessful bidder, Kiewit Pacific Corp., appealed its preliminary injunction request to the Alaska Supreme Court on Friday.

Southeast Road Builders of Haines was the low bidder in the process and has been awarded the contract. It has proposed building a 18-foot wide Pioneer Road from Cascade Point to the Antler River and from the Lace River to the existing Jualin Mine road. The state DOT&PF has directed Southeast Road Builders to take no action while the appeal is pending.

Kiewit filed a temporary restraining order and preliminary injunction in Superior Court asking that the contract award be delayed while it protests the award. Superior Court Judge Patrick J. McKay had earlier dismissed the request on Thursday.

Without the appeal, the contract award would have allowed Southeast Road Builders of Haines to begin limited work on the project although no construction activities were expected to begin until all permits were received, which could be before the end of winter.

DOT&PF decided to proceed with the first phase of the Lynn Canal Highway as an 18-foot wide pioneer road after potential permitting delays threatened to delay the summer start of the road construction. Because the state is using state funds, it can select a contractor to construct this road in the winter, a time when traditionally contractors are securing commitments for summer construction work.

Source of News:

Alaska Department of Transportation & Public Facilities
www.dot.state.ak.us

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