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City Settles Suit Filed by Sewage Plant Contractor

October 25, 2000

LOS ANGELES — The City Council approved a $15-million settlement in the first of four lawsuits filed by contractors who claim the city bungled its effort to expand the Hyperion sewage treatment plant.

The suit, filed by Kiewit Pacific Construction Co., alleged that the city proceeded with defective construction plans, caused delays in its construction schedule and demanded extra work without paying for it. Similar suits, filed by two other firms, are pending.

Referred to by contractors as the "Hyperion Experience," the $1.6-billion plant--finished two years ago--was plagued with a variety of costly mistakes that forced some of the project's contractors into bankruptcy.

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