1. Executive Summary
Decision Requested
Determine WSDOT’s position for DRB proceedings on Skanska’s claim that WSDOT caused compensable delay by reopening approximately 40 previously resolved BRT station design review comments.
- Recommendation: Deny — Proceed to DRB; WSDOT’s design review authority is contractually unrestricted and the Design-Builder bears responsibility for resolving all design issues
- Cost Exposure: $1,867,700 claimed (Skanska $840,000 + AECOM $1,027,700); WSDOT position is $0
- Risk Level: Moderate — comment reopening narrative creates some vulnerability; strong contract authority defenses available
Core Question
Did WSDOT’s design review activities — specifically reopening approximately 40 previously resolved comments — constitute a compensable WSDOT-initiated change, or were those activities within WSDOT’s unrestricted contractual design review authority?
Skanska notified WSDOT in April 2025 (LTR 168) that WSDOT had allegedly reopened approximately 40 previously resolved design review comments for the BRT station facilities, causing a claimed 55-day delay and $1,236,713 in additional design costs. WSDOT denied the request for an Owner-Initiated Change (OIC) in SL 9727-100, finding no eligibility for adjustment — design review is within WSDOT’s contractual authority and the Design-Builder remains responsible for resolving all design issues regardless of the volume or sequence of comments.
After a formal protest (LTR 180), multiple supplement exchanges, and a corrected supplement (LTR 213), WSDOT maintained its denial in SL 9727-134 (August 6, 2025). Skanska then escalated to a Dispute Notification (LTR 222, August 20, 2025), revising its claimed amount upward to approximately $1,867,700 (Skanska $840,000 + AECOM $1,022,770) and asserting a 55-day delay with 10 days self-mitigated. WSDOT acknowledged the dispute in SL 9727-152 and is awaiting the formal Dispute Referral per RFP Section 1-04.5(1).18 before DRB proceedings begin.
WSDOT’s core position is that design review — including revisiting prior comments when design submissions are insufficient — is inherently within the contractual scope of the Owner’s review rights. The Design-Builder bears the risk and cost of achieving compliant design, and no volume of review comments constitutes a compensable change. WSDOT denies the claimed 55-day delay is owner-caused and disputes the cost substantiation.
2. Skanska Assertions and WSDOT Position
Skanska Assertion
Skanska asserts in LTR 168 that WSDOT reopened approximately 40 previously resolved BRT station design review comments, constituting a WSDOT-initiated change to the Work that caused additional design effort and delay. Skanska frames this as WSDOT changing its position on previously accepted design elements.
WSDOT Position
WSDOT’s contractual design review authority is unrestricted. Comments that were nominally “resolved” but where the underlying design issue was not corrected may legitimately be revisited. The Design-Builder bears the obligation to produce compliant designs; WSDOT is not estopped from requiring compliance by prior acknowledgment of a response. The characterization of comments as “reopened” misrepresents the iterative nature of design review under a DB contract.
Skanska Assertion
Skanska claims the comment reopening caused a 55-day delay to BRT station design delivery (10 days self-mitigated), and that this delay is attributable to WSDOT’s conduct. The claim was refined through supplemental submissions: LTR 199 ($1,236,713), LTR 213 (corrected supplement), and LTR 222 ($1,867,700 final amount including 45-day unmitigated delay attributed to WSDOT).
WSDOT Position
The claimed delay is not demonstrated to be owner-caused. Skanska has not established critical path impact showing the design review comments delayed a contract milestone. The Design-Builder bears float ownership and schedule risk for design activities. Furthermore, the cost substantiation evolved significantly across multiple submissions, suggesting the original amount was not well-supported. WSDOT’s position in SL 134 is that no adjustment is available.
Skanska Assertion
Skanska claims $840,000 for its own forces and $1,022,770 for AECOM (design subconsultant) as a result of the BRT station comment resolution effort, for a total of approximately $1,867,700. The AECOM amount reflects design hours attributed to the allegedly reopened comments.
WSDOT Position
The cost claim is procedurally deficient and substantively unsupported. The initial supplement (LTR 199, $1,236,713) was found insufficient by WSDOT in SL 123. The corrected supplement (LTR 213) still did not establish entitlement. The final dispute amount represents a significant escalation without a corresponding improvement in the supporting analysis. WSDOT will scrutinize the allocation of AECOM hours to the claimed events and the absence of a causal link between specific comments and specific costs.
3. Risk
Strengths
- WSDOT’s design review authority under a DB contract is broad — GP 1-03.7 confirms oversight activities do not constitute approval or create entitlement
- GP 1-04.4(5)(b) expressly excludes design changes required for contract consistency from change order eligibility
- Multiple consistent written positions (SL 100, SL 123, SL 134) maintaining denial — no inconsistency for Skanska to exploit
- Skanska’s cost amount escalated between submissions (from $1,236,713 to $1,867,700), suggesting the claim was not well-grounded at inception
- WSDOT granted reasonable accommodation (45-day supplement extension in SL 109), demonstrating good faith
Potential Weaknesses
- If the record shows specific comments were formally closed/accepted and then substantively changed, the “reopening” narrative gains traction with the DRB
- DRBs on DB contracts may be sympathetic to claims that iterative design review comments exceed the scope of normal review
- AECOM’s $1,022,770 share represents a large design cost that will require detailed scrutiny of actual hours and attribution
- Skanska partially mitigated the claimed delay (10 days), which may be used to argue the remaining 45 days is unreasonably attributable to WSDOT
Defense Layering
| Layer | Defense | Use In |
|---|---|---|
| 1. | WSDOT’s design review authority is contractually unrestricted — no volume or sequence of comments constitutes a change (GP 1-03.7; GP 1-04.4(5)(b)) | DRB Referral / Hearing |
| 2. | No critical path delay demonstrated — Skanska has not shown comments delayed a contract milestone (GP 1-04.5(2)(d)) | DRB Referral / Hearing |
| 3. | Cost claim procedurally deficient and substantively unsupported — three different amounts across LTR 199, LTR 213, and LTR 222 | DRB Referral / Hearing |
| 4. | Comments characterized as “reopened” were legitimately unresolved — DB cannot bootstrap entitlement from iterative review | Reserve for Hearing |
Fallback Position
If the DRB finds that some comments were improperly “reopened,” limit any award to directly attributable AECOM hours for those specific comments only, excluding Skanska markup and general delay damages. Resist any schedule relief unless critical path impact is demonstrated with a contemporaneous analysis.
4. Chronology
| Date | Event |
|---|---|
| 2025-04-04 | Skanska LTR 168 — Notifies WSDOT of claimed cost/schedule delays from BRT station comment resolution; claims WSDOT reopened 40 comments; requests OIC |
| 2025-04-14 | WSDOT SL 100 — Responds to LTR 168; determines no eligibility for adjustment |
| 2025-04-28 | Skanska LTR 180 — Notice of Protest 002; requests 75-day extension for supplemental information |
| 2025-05-07 | WSDOT SL 109 — Agrees to extend supplement deadline to 45 calendar days (June 12, 2025) |
| 2025-05-30 | Skanska LTR 196 — Acknowledges extension; requests 15 more days to June 27 |
| 2025-06-06 | WSDOT SL 114 — Denies additional time; supplement due June 12 |
| 2025-06-12 | Skanska LTR 199 — Provides supplement with estimate of $1,236,713 |
| 2025-06-26 | WSDOT SL 123 — Finds supplement insufficient; requests correction within 15 days |
| 2025-07-02 | Skanska LTR 207 — Requests 30 days instead of 15 for correction |
| 2025-07-02 | WSDOT SL 124 — Grants additional 5 days for correction |
| 2025-07-16 | Skanska LTR 213 — Provides correction to supplemental information |
| 2025-08-06 | WSDOT SL 134 — Responds to supplement; no adjustment available |
| 2025-08-20 | Skanska LTR 222 — Dispute Notification per RFP Section 1-04.5(1); AECOM seeks $1,022,770; total ~$1,867,700 |
| 2025-09-08 | WSDOT SL 152 — Acknowledges dispute; awaits Dispute Referral per Section 1-04.5(1).18 |
| ~2026-03-20 | Dispute Referral from Skanska pending — DRB proceedings cannot begin until referral filed |
5. Cost & Time
Skanska’s Claimed Amount (from LTR 222)
| Component | Amount |
|---|---|
| Skanska forces (BRT station design delay) | $840,000 |
| AECOM design subconsultant (comment resolution effort) | $1,027,700 |
| Total Claimed | $1,867,700 |
| Schedule Extension Claimed | 45 calendar days (55 claimed − 10 mitigated) |
Evolution of Claimed Amount
| Submission | Amount | Status |
|---|---|---|
| LTR 199 — Initial Supplement (Jun 12) | $1,236,713 | Found insufficient (SL 123) |
| LTR 213 — Corrected Supplement (Jul 16) | Amount in letter | Denied (SL 134) |
| LTR 222 — Dispute Notification (Aug 20) | $1,867,700 | Dispute acknowledged (SL 152) |
WSDOT Exposure Scenarios
| Scenario | Cost | Time |
|---|---|---|
| WSDOT position (full denial) | $0 | None |
| DRB partial (AECOM direct costs only, no Skanska markup) | ~$500K–$700K | None |
| Worst case (full DRB award) | $1,867,700 | 45 days |