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The Middle Harbor project at the Port of Long Beach is over budget by $29.5 million as of June 17, and its program manager, Tom Baldwin, anticipates the cost may go even higher.
The budget originally approved by the Long Beach Board of Harbor Commissioners in January of this year was for $1.2 billion, and included $50 million for “escalation” costs. At press time, the Business Journal could not confirm if the escalation amount is similar to a contingency included in most construction contracts, and if so, if the $50 million had also been spent.
The document outlining the increase stated that the additional spending was necessitated [usually covered by a contingency] by “unforeseen obstructions” and “higher than anticipated material and labor costs” for the relocation of OXY Long Beach, Inc.’s oil field facilities required by the Middle Harbor improvements.
More at the Long Beach Business Journal