The contractor building the Silver Line Metro extension faces millions of dollars in fines if it fails to complete the project by an April deadline. . .
Under its contract, DTP could face tough penalties if the delays extend seven months past the previously agreed upon deadline of Sept. 9, 2013. That means, if the project is not deemed complete by MWAA by April 9, DTP could face financial consequences.
According provisions in the 129-page contract between Dulles Transit Partners and the Metropolitan Washington Airports Authority, DTP has until April 9 to complete work on the first phase of the project. If DTP fails to finish the work, it will have to pay $25,000 per day until the work is completed. That $25,000 a day fine increases significantly the longer the delay.
If DTP is more than three months late finishing its work, it would owe MWAA nearly $2.8 million in addition to a fine of $75,000 per day. Ultimately, if the project is delayed more than six months from that April date, DTP could be required to pay more than $9 million. Under the terms of the contract, such payments are capped at $60 million.
DTP would have reaped financial rewards of up to $10 million if work had been completed before the initial deadline. . . .For the rest of this article, click here.
The natural follow-on question is, if DTP pays fines, where do those revenues go? Will MWAA simply stash away the collected fines for its general operating purposes or, for once, will Dulles Toll Road users see the money applied to relief on increasing toll rates?
We guess we'll just have to wait and see.