Modern-Sundt, the general contractor for Oroville (Calif.) Hospital, has raised concerns the hospital cannot pay for the five-story $178 million tower expansion project the contractor is currently working on, the Chico Enterprise-Record reported Dec. 20.
Under the terms of the agreement, Morden-Sundt has the right to request financial evidence that the hospital can pay for the construction. The two most recent requests for evidence have gone unanswered by the hospital, according to the Enterprise-Record.
In February 2019, the hospital received $200 million in bonds to cover the cost of the project they said would cost $178 million. The tower was slated for completion in April 2022; that date has now been pushed back to November 2023.
If the hospital fails to produce evidence of ability to pay, the contractor can stop construction on the project. Modern-Sundt had not suspended construction at the time of publication.
Oroville Hospital CEO and President Robert Wentz declined to provide comment to the Enterprise-Record.