The Oklahoma Transportation Commission authorized a $207,186.64 settlement to compensate Allen Contracting for additional work and a negotiated claim on a Payne County State Highway 33 project after utility repairs and related delays affected the project’s critical path.

Mister Davis presented the item and said the contract was originally awarded on Sept. 22, 2021 to Allen Contracting for $18,970,931.64 with an original contract time of 480 calendar days. The contractor requested compensation for multiple utility issues that impacted the project’s schedule; the repairs and a few minor relocations cost $66,504.86. A negotiated settlement of the contractor’s claim associated with delays totaled $140,681.78. Taken together, the additional work exceeded the statutorily defined 10% limit on projects of $1,000,000 or greater; department counsel recommended commission approval of the settlement rather than pursuing litigation.

Mister Davis said, “The entitlement for this claim is recognized by the department, and it is recommended that the commission authorize a settlement in the amount of $207,186.64.” The motion to approve the settlement was made by Commissioner Dyson and seconded; the commission voted to approve the item.

Why it matters: Because the cumulative cost of added items surpassed the statutory threshold for projects of this size, commission approval was required to compensate the contractor. The department indicated it evaluated the cost to litigate to recover amounts versus accepting settlement and concluded settlement was the more cost‑effective option.

Discussion and context: The presenting staff described the additional work as necessary repairs and relocations to utilities encountered during construction that affected the project’s critical path. The department said the entitlement for the claim was recognized and that compensation was appropriate for the contractor completing the work.

Ending: The commission approved the settlement and staff said they would proceed with payment and close the claim as recommended.