Electric Co-Op Says Contractor Lowballed Cost By $1B

Law360, New York (February 14, 2011, 1:09 PM EST) -- Electricity cooperative American Municipal Power Inc. is seeking $97 million from a contractor it says lowballed the cost estimate for a coal-fired power plant by more than $1 billion, convincing AMP to shell out millions on an economically unfeasible project.

Engineering, procurement and construction contractor Bechtel Power Corp. promised AMP it would use its extensive knowledge of similar power plant construction projects to help provide good contracting advice and sound cost estimates, according to the complaint American filed against Bechtel on Friday in the U.S. District...
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