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County And Turner Construction Reach Agreement To Complete Hospital Project

Agreement calls for firm cost controls and completion date
SANTA CLARA COUNTY, CALIF.—The County of Santa Clara and Turner Construction finalized an agreement to complete the construction of the Hospital Bed Building and the North Utility Loop at Santa Clara Valley Medical Center (SCVMC) with additional costs capped at $85 million.  The County anticipates the project to be completed by mid-2017.
A recent independent analysis conducted by The Boldt Company estimated that cost to complete could reach $126 million.  However, that estimate did not include resolution of substantial pending Turner and subcontractor past claims or the potential cost of litigation estimated to be several million more.   This agreement resolves the past claims and litigation will end.   Both sides will now be focused on project completion.
“This agreement is good for patients and taxpayers,” said County Executive Jeffrey V. Smith, M.D., J.D. “Over the past month, Turner’s CEO, Peter Davoren, approached the County with a firm commitment on completion costs as well as a collaborative approach to finish the project in a reasonable time period. We now have a budget and timeline we can count on.”
In addition to the firm cost controls and completion schedule, Turner Construction has pledged the direct involvement of its CEO for the remainder of the project, ensuring strong oversight of the project by the company’s top executives. The County and Turner Construction have also agreed to appoint new on-site project managers as well.
“We are eager to see the Bed Building finished as soon as possible,” stated Paul Lorenz, CEO of the Santa Clara Valley Medical Center.  “Bringing this new, modern facility on line will help improve the patient care of our expectant mothers, physical rehabilitation patients and burn center patients.”
The agreement comes after the County terminated Turner Construction from the project in September of 2015.  Since that time, the County hired The Boldt Company to conduct an independent analysis of the estimated cost to complete the project and an estimated schedule to complete the remaining work. During this period, the County was in discussions with several national construction firms on completing the project. 
“This is a fresh start for the project,” said Smith.  “Turner knows the project better than any other firm.  With their new team in place and the personal involvement of Mr. Davoren, I’m confident we can complete the bed building in a timely manner and improve services to the patients we serve.”
Media Contact: Laurel Anderson, Office of Public Affairs, 408-299-5119
Posted: January 22, 2016​