Suit alleges Broomfield construction firm stiffed C-470 subcontractor

DENVER — A recently filed lawsuit from AECOM Technical Services Inc., a Los Angeles construction design subcontractor, claims a Broomfield company has refused to pay ATS for design work done as part of the Colorado Department of Transportation’s C-470 Tolled Express Lanes project.

ATS has suffered more than $5 million in damages as a result of a breach of contract by Broomfield civil infrastructure construction giant Flatiron Construction Corp. and partner AECOM Energy & Construction Inc. — collectively referred to in court documents as both Flatiron AECOM and JV — according to the suit filed in U.S. District Court in Denver. 

Flatiron representatives did not respond to a request for comment Friday.

Flatiron subcontracted C-470 design work to ATS in 2016, documents show. That work  included “designs for the project drainage, roadway construction, structures, geotechnical, signing, traffic control, utilities, and intelligent transportation systems.” 

According to a 2016 news release from Flatiron, the $215 million C-470 project involved “adding two tolled express lanes on westbound C-470 from I-25 to Colorado Boulevard,one tolled express lane between Colorado and Wadsworth boulevards on westbound C-470, and one tolled express lane eastbound C-470 from Wadsworth to I-25, along with reconstruction of a portion of existing pavement.”

As part of that contract, Flatiron agreed to compensate ATS for additional redesign services required by changes to the construction plan. 

That redesign work was done routinely, according to ATS’ complaint. Proposed change orders were submitted throughout the project. Some were paid, others were not, the suit alleges.

“Furthermore … JV has already received payment from CDOT for certain additional design services performed by ATS, but has refused to remit corresponding payment to ATS,” according to the complaint.

In early 2019, ATS and JV began to “endeavor to resolve the [proposed change order] disputes through executive level negotiations,” the suit said. “Since that time, ATS’ executive team has tried to engage Flatiron’s executive team in a collaborative, good faith dispute resolution process regarding the unpaid additional design services, but that process has also proven unsuccessful.”

ATS’ suit demands a court award the company with payment for outstanding invoices, interest and court fees.

Attorneys for Flatiron have yet to file a response to the suit. ATS is represented by Denver-based lawyers with Bryan Cave Leighton Paisner LLP.

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