City may lock up settlement

After years of litigation with the construction company contracted to build a new jail in San Bruno, The City stands to settle for $23.3 million.

The proposed settlement agreement with AMEC, a London-based construction company, was submitted to the Board of Supervisors Tuesday for approval.

AMEC sued The City for $46 million, what it thought it was owed for the work after walking away from the job and declaring it was complete, according to legal documents related to the settlement.

The City sued the construction company for $41 million, claiming shoddy work. As litigation ensured, The City contracted with a new company to finish the jail, which opened in 2006, almost three years behind schedule.

About $13 million of the proposed $23.3 million is money that has been spent on finishing the jail project. How the remaining $10 million would be spent by The City has not been announced. The settlement also dismisses AMEC’s claim for additional money.

“We are pleased about the terms of the settlementas we have always wanted to settle with The City and County of San Francisco,” Lauren Gallagher, a spokeswoman for AMEC, said.

The terms of the settlement will be voted on by the board’s Rules Committee and would require a full board vote for approval.

Construction of the 768-bed jail began in 2000, after a U.S. District Court judge ruled the conditions of a jail facility violated the prisoners’ constitutional right against cruel and unusual punishment.

jsabatini@examiner.com

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