Tutor Perini Secures $1.4 Billion Wilshire Subway Contract

A joint venture led by Sylmar-based Tutor Perini Corp. has been awarded a $1.4 billion contract by the Los Angeles County Metropolitan Transportation Authority to construct the second phase of the Metro Purple Line subway through Beverly Hills and into Century City. The team of Tutor Perini and O&G Industries of Torrington, Conn. submitted a bid that was $500 million lower than two other competing bid teams. “Today’s contract award to Tutor Perini brings us one step closer to fulfilling our promise to bring fast, reliable, high-capacity subway service to the Westside,” Metro Board Chair and Duarte City Councilman John Fasana said in a statement. “We now have the funding in place and the contractor onboard to expedite delivery of this high-priority, regionally beneficial transit project.” In early January, the U.S. Department of Transportation announced $1.5 billion in new federal grants and loans to Metro to build section two of the project, which extends west from Wilshire/La Cienega Blvd. in Beverly Hills to the intersection of Avenue of the Stars and Constellation Blvd. in Century City. The total budget for this phase has been set at $2.4 billion. The selection of Tutor Perini came despite the tortured history of Wilshire Boulevard subway construction between the transportation agency and predecessor contractor, Tutor Saliba Corp. In 1995, Tutor Saliba sued Metro seeking recovery of $16 million in costs associated with change orders for construction of the portion of the Wilshire Boulevard subway known as the Red Line. The MTA countersued, claiming Tutor Saliba inflated costs. A jury awarded a total of $63 million to Metro, but that was overturned by an appeals court in 2005. Metro dropped its remaining claims against Tutor Saliba five years later. Tutor Saliba subsequently merged with Perini Corp. Tutor Perini announced it was close to winning the Wilshire subway contract on Jan. 17. Shares closed Friday down $1.60 or 5 percent to $30.80 on the New York Stock Exchange.