The contractor, Kiewit-Turner, abandoned the project following a federal board of appeals ruling that found the VA breached its contract when it did not produce a design that could be built within the estimated construction cost. Although the estimated cost of the project was around $604 million, the VA designed a hospital that would cost upwards of $1 billion.
The VA’s funds for constructing the entire project were not nearly sufficient and, at the time of the Civilian Board of Contract Appeals decision, it had no plans to obtain additional funds, according to the report.
The board of appeals also found the contractor to be within its rights to walk away after previously stating that it had the right to stop work on the project until funding was secured to pay for it, according to the report.
Despite this setback, the VA has released a statement confirming its continued commitment to building a replacement hospital in Aurora.
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VA fires director of Phoenix VA Health Care System
1.2M+ veterans lack health coverage, study finds
Waits remain long at VA hospitals
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