State settles dispute with contractor

CARSON CITY -- The Nevada Board of Examiners approved a $13.6 million settlement Tuesday with the contractor of the first phase of the Carson City bypass, ending a legal dispute that officials said could have cost more than three times the amount if the case had gone to court.

The settlement came after the state Board of Transportation in January approved an updated contract with a law firm handling the lawsuit and to take the case to mediation, resulting in legal fees of about $6 million.

Ames Construction was the low bidder at around $70 million in 2003 to build the 3.5-mile freeway segment .

Richard Nelson, assistant director for the Nevada Department of Transportation, said contract changes added to the overall cost, as did high staff turnover on the project. Nelson said the contractor lost about $18 million on the job.