1. Executive Summary
Decision Requested
Prepare for Disputes Review Board (DRB) referral on Protest 011. WSDOT’s position is that the Design-Builder is responsible for the PSE power routing design to the SR-522 Transit Hub under the contract and that no additional compensation or Contract Days are warranted. The dispute is awaiting Skanska’s written Dispute Referral per RFP Section 1-04.5(1).18.
- Recommendation: Deny all claims — proceed to DRB upon Dispute Referral
- Cost Exposure: $1,112,424 claimed (Skanska $598,750 + AECOM $513,674)
- Risk Level: Analysis in progress — position paper and internal memo not yet complete
Core Question
Did the revised PSE power routing to the SR-522 Transit Hub constitute a WSDOT-directed change entitling the Design-Builder to additional compensation and Contract Days, or was the power routing design the Design-Builder’s contractual responsibility?
In November 2025, Skanska notified WSDOT via LTR 273 that changes to the PSE power routing to the SR-522 Transit Hub had caused design delays and additional AECOM costs of approximately $340,362. WSDOT responded via SL 9727-203 (November 21, 2025), finding no merit for extra cost on temporary signal power design.
Skanska protested via LTR 289 (December 5, 2025) and requested a 60-day extension to submit supplemental information. WSDOT denied the extension via SL 9727-211 (December 8, 2025), setting the supplemental deadline at December 19. Skanska’s supplemental (LTR 300, December 19, 2025) increased the claim to $1,112,423.95 and stated no additional Contract Days would be required if RFC design was complete by February 20, 2026. WSDOT again determined no merit via SL 9727-238 (January 9, 2026).
Skanska filed a Dispute Notification via LTR 328 (January 23, 2026). WSDOT acknowledged via SL 9727-251 (January 26, 2026) and requested a written Dispute Referral per Section 1-04.5(1).18. The dispute referral is pending. DRB preparation is in progress.
2. Skanska Assertions and WSDOT Position
Skanska Assertion
The revised PSE power routing to the SR-522 Transit Hub required AECOM to redesign the temporary power approach and caused additional design costs and delays. Skanska characterizes the routing revision as a WSDOT-directed change that triggered additional scope outside the contract. LTR 273 notified WSDOT of an estimated $340,362 impact; supplemental LTR 300 increased this to $1,112,424.
WSDOT Position
The Design-Builder is responsible for the power routing design to the Transit Hub under the contract. WSDOT determined via SL 9727-203 that no extra cost for temporary signal power design is warranted. The Design-Builder accepted the contract with knowledge of the PSE coordination requirements. Changes in PSE routing are part of the Design-Builder’s design coordination responsibility. Analysis of the contract basis for this position is in progress for DRB preparation.
Skanska Assertion
Skanska’s supplemental (LTR 300, December 19, 2025) documents $1,112,423.95 in additional costs: Skanska direct costs of $598,750 and AECOM redesign costs of $513,673.95. The costs are attributable to the revised PSE routing requiring a new temporary power design approach for the Transit Hub.
WSDOT Position
WSDOT determined no merit for the cost claim. The claimed costs represent the DB’s design effort to meet its contractual obligations, not costs caused by a WSDOT-directed change. Under GP 1-04.4(5)(b), design changes required to achieve contract compliance are the DB’s responsibility. Detailed cost entitlement analysis is in progress for DRB. No Change Order was issued.
Skanska Assertion
Skanska’s supplemental (LTR 300) states that no additional Contract Days are requested if RFC design is complete by February 20, 2026. This conditional schedule waiver reduces the near-term schedule exposure but preserves Skanska’s right to claim delay if the RFC target date is not met.
WSDOT Position
WSDOT’s no-merit determination addresses the cost claim. The conditional schedule waiver does not affect the cost analysis. If RFC design was completed by February 20, 2026, the schedule entitlement is waived per Skanska’s own submission. WSDOT’s position is that no schedule entitlement exists regardless, as the power routing design is the DB’s contractual responsibility.
3. Risk
Analysis Status
Full internal analysis and position paper are in progress for DRB preparation. This section will be updated as the DRB submission is developed. Key risk factors are noted below based on available information.
Initial Strengths
- WSDOT issued two consistent no-merit determinations: SL 9727-203 and SL 9727-238
- Skanska itself conditioned the schedule claim on RFC completion by February 20, 2026, suggesting limited schedule exposure
- No Change Order was issued for the PSE routing change; without an OIC, there is no contractual basis for an equitable adjustment under GP 1-04.4(1)
- PSE coordination for utility routing is typically within DB’s scope on design-build projects
Potential Weaknesses
- Position paper not yet developed; detailed contract basis needs to be documented before DRB
- AECOM’s initial estimate ($340,362) versus supplemental ($513,674) suggests evolving cost analysis that may generate DRB questions
- If PSE routing was driven by WSDOT-controlled right-of-way or utility coordination constraints, the DB may have a colorable change argument
Defense Layering
| Layer | Defense | Use In |
|---|---|---|
| 1. | No OIC was issued. GP 1-04.4(1) requires WSDOT to “authorize and require changes” via a Change Order. Without an OIC, no equitable adjustment is owed. PSE coordination is a DB design responsibility. | DRB Referral / Primary |
| 2. | GP 1-04.4(5)(b): Design changes required to achieve contract compliance are the DB’s exclusive responsibility and are not eligible for change orders. | DRB Referral / Secondary |
| 3. | Skanska’s conditional schedule waiver (0 days if RFC by 2/20/26) limits the schedule exposure to the cost claim only. | Schedule Defense |
Fallback Position
If DRB finds that PSE routing involved WSDOT-driven constraints outside the DB’s control, WSDOT should be prepared to limit any relief to direct AECOM redesign costs that are clearly attributable to the specific routing change, excluding Skanska’s overhead and management markup. Schedule entitlement should remain denied given Skanska’s own conditional waiver.
4. Chronology
| Date | Event |
|---|---|
| 2025-11-07 | Skanska LTR 273 — Notifies WSDOT of design impacts from temporary power routing at SR-522 Transit Hub; AECOM estimate $340,362 |
| 2025-11-21 | WSDOT SL 9727-203 — No merit for extra cost on temporary signal power design |
| 2025-12-05 | Skanska LTR 289 — Notice of Protest 011; requests 60-day extension for supplemental |
| 2025-12-08 | WSDOT SL 9727-211 — Denies 60-day extension; sets supplemental deadline December 19 |
| 2025-12-19 | Skanska LTR 300 — Supplemental information; claim increased to $1,112,424; no additional days if RFC design complete by 2/20/26 |
| 2026-01-09 | WSDOT SL 9727-238 — Responds to supplemental; no merit determination |
| 2026-01-23 | Skanska LTR 328 — Dispute Notification per Section 1-04.5(1) |
| 2026-01-26 | WSDOT SL 9727-251 — Acknowledges DRB request; requests written Dispute Referral per Section 1-04.5(1).18 |
| 2026-01-26 | Dispute filed. Awaiting written Dispute Referral from Skanska. DRB preparation in progress. |
5. Cost & Time
Skanska’s Claim (from LTR 300)
| Component | Amount |
|---|---|
| Skanska (direct costs) | $598,750.00 |
| AECOM (redesign costs) | $513,673.95 |
| Total | $1,112,423.95 |
| Schedule Extension | 0 days (if RFC complete by 2/20/26) |
WSDOT Exposure Scenarios
| Scenario | Cost | Time |
|---|---|---|
| WSDOT position — deny all claims | $0 | None |
| DRB partial — AECOM direct redesign only | $200K–$400K (est.) | None |
| Worst case — DRB finds full entitlement | $1,112,424 | TBD |
Relief Requests and Disposition
| # | Relief Requested | WSDOT Disposition |
|---|---|---|
| 1 | Cost adjustment of $1,112,424 for PSE power routing redesign | Denied — No OIC; PSE coordination is DB’s design responsibility; GP 1-04.4(5)(b) |
| 2 | Schedule extension (reserved / conditional on RFC date) | Denied — No schedule entitlement; DB waived days if RFC by 2/20/26 |