Notice
Protest
Determination
Dispute
Hearing

1. Executive Summary

Decision Requested

Issue written determination denying Protest 017 and all relief requested.

  • Recommendation: Deny — Section 2.8.5.4.5 allocates all permit modification costs to the Design-Builder
  • Cost Exposure: $230,919.07 (admin $50,425, future design unquantified, crane $124,489)
  • Risk Level: Low — multiple independent contract provisions support denial; procedural bar (35 days late) adds further defense

Core Question

Does the Design-Builder bear the costs of permit modifications required when a previously-unidentified (or expanded) wetland is discovered within the project footprint, or can those costs be recovered as an Owner-Initiated Change?

Section 2.8.5.4.5 answers this directly. Paragraph 1 requires the DB to provide WSDOT with all information necessary to obtain a permit modification when “previously unidentified Sensitive Areas are present that would be impacted by the Conceptual Plans.” Paragraph 2 assigns “all costs and schedule delays associated with having to obtain permit modifications” to the Design-Builder when working outside the Impact Area Line due to an ATC or design change. The JARPA update (October 17, 2025) documents that most impact changes resulted from “design changes,” “updated project line work,” and “stormwater elements added” — squarely within Paragraph 2’s trigger.

Beyond the cost allocation, what Skanska calls a “newly discovered wetland” is more accurately an expanded delineation of Wetland 26.55L, which was listed in the pre-bid WSAR (E10a, Table 3) at 0.20 acres. The DB’s independent verification obligation under Section 2.8.5.4 required it to confirm the boundaries of this known wetland before installing HVF/HVSF. The billing records explicitly reference “Wetland 26.55L” in July 2025 entries — confirming this is an expanded delineation, not a new discovery.

Skanska’s protest (LTR 368, March 6, 2026) was filed 35 days after the 14-calendar-day protest window expired from SL 9727-218 (December 12, 2025). The procedural bar applies regardless of the merits. WSDOT acknowledged the protest and denied the extension request (SL 9727-291, March 11, 2026). Supplemental due March 20, 2026.

Issue ID
SKA-0219
Amount Claimed
$230,919
Time Impact
None claimed
Status
Deny

2. Skanska Assertions and WSDOT Position

LTR338-1 Closure Was Premature — Permit Not Yet Received Strong

Skanska Assertion

Skanska disagrees that the matter is closed. It could not provide cost/time information until the Section 404 permit modification was complete (received January 9, 2026).

WSDOT Position

SL 9727-128 (July 22, 2025) requested information to substantiate anticipated impacts — not final permit documents. Administrative costs for delineation, JARPA preparation, and survey work were incurred and quantifiable from June through October 2025. The JARPA update is dated October 17, 2025. Billing records document the work. Skanska had five months between SL 128 and closure to provide at minimum the administrative cost substantiation.

Additionally, LTR 338 is dated January 30, 2026 — 35 calendar days after SL 9727-218 (December 12, 2025). The GP 1-04.5 protest window is 14 calendar days. LTR 338 is untimely as a protest.

GP 1-04.5 (protest timeline) · SL 9727-128 (substantiation request)
LTR338-2 Cooperation Justifies Compensation Strong

Skanska Assertion

Skanska cooperated in a timely manner with the permit modification process, providing all necessary information for WSDOT to apply for the Section 404 permit modification. This cooperation should be recognized and compensated.

WSDOT Position

Noted. Skanska’s cooperation is consistent with its contractual obligation. Section 2.8.5.4.5 requires the Design-Builder to “provide the WSDOT Engineer with all information necessary to obtain a permit modification.” Fulfilling a contractual obligation does not create entitlement to compensation. SL 9727-107 used identical language when responding to the Juanita Creek wetland discovery (LTR 175), establishing a consistent framework.

RFP 2.8.5.4.5 · SL 107 (pattern)
LTR338-3 Administrative Costs — $50,425 for Delineation and Permit Work Strong

Skanska Assertion

Administrative costs of $50,425.23 were incurred for wetland delineation, SAVL addendum, JARPA updates, Environmental Task Force coordination, and permit modification support. These are attributable to the newly discovered wetland at NF Perry Creek.

WSDOT Position

These costs are the DB’s responsibility under Section 2.8.5.4.5. The JARPA update (October 17, 2025) covers impact changes across 10+ wetlands and creeks. Most changes are described in the Summary of Changes as “design changes,” “updated project line work,” “nominal changes due to design refinement,” and “stormwater elements added.” Skanska has not segregated costs attributable solely to the NF Perry Creek West wetland from costs attributable to design-driven changes across the project. The billing records (Phases 000008, 00033, 00034) span broad environmental work — no allocation methodology is provided.

Moreover, what Skanska characterizes as a “newly discovered wetland” is an expanded delineation of Wetland 26.55L, which was identified in the pre-bid WSAR (E10a, Table 3) at 0.20 acres. The July 2025 billing records explicitly reference “Wetland 26.55L.” The boundary tripled in size (0.20 acres → 0.428 acres permitted → +0.224 acres JARPA expansion), but this is boundary verification, not a new discovery.

RFP 2.8.5.4.5 · E10a WSAR (Wetland 26.55L at 0.20 ac)
LTR338-4 Future Design Costs — ACE Restoration Plans Strong

Skanska Assertion

Future design costs will be incurred for ACE-required restoration plans and Washington State Department of Ecology mitigation updates. These costs arise from WSDOT’s permit modification and should be compensated.

WSDOT Position

Restoration of temporary impacts and mitigation of permanent impacts are DB obligations under Section 2.8.5.4.1 and the permits (Appendix P). Section 2.8.5.4.5 allocates permit modification costs to the DB. Future costs that have not yet been incurred are speculative and do not support a current equitable adjustment. The ACE permit modification (January 9, 2026) noted that WSDOT still owes restoration plans and Ecology mitigation updates — these are permit compliance obligations, not WSDOT-directed changes to Skanska’s work.

LTR338-5 Crane Cost Delta — $124,489 for Larger Crane Moderate

Skanska Assertion

The wetland boundary reduced the construction staging area for both the fish passage service crane and girder-setting crane, requiring modified crane setups with a cost delta of approximately $124,489 (upgrade from 80T to 110T Kobelco + oiler requirement + mob/demob).

WSDOT Position

Even if the causal link were established, Section 2.8.5.4.5 allocates these costs to the DB. The DB is solely responsible for site conditions discoverable from a reasonable site examination (GP 1-02.4). Beyond the legal defense, causation has not been demonstrated: (1) no geometric analysis shows the wetland boundary was the controlling constraint on crane pad location versus other site factors; (2) no engineering analysis explains why an 80T crane was infeasible at an alternative position; (3) the oiler requirement ($39,749) is a consequence of choosing a >100T crane; (4) mob/demob charges ($46,160) assume the Kobelco was not already mobilized; (5) a $1,530 “Form Cleaning Time” charge is unexplained.

Note: Causation is MEDIUM confidence — WSDOT has not independently verified the relationship between the wetland boundary and the crane configuration. The legal defense (Section 2.8.5.4.5) is strong regardless.

RFP 2.8.5.4.5 · GP 1-02.4(1) (site examination)
LTR338-6 Request for OIC — Reopen and Process $230,919 Strong

Skanska Assertion

WSDOT should reopen the matter, process an OIC to incorporate the updated permits, and provide equitable adjustment for all associated administrative, design, and crane-related construction impacts totaling $230,919.07.

WSDOT Position

WSDOT has not directed a change. An OIC under GP 1-04.4(1) requires WSDOT to “authorize and require changes within the general scope of the Contract.” WSDOT coordinating the Section 404 permit modification is its role as the permittee — it does not constitute direction to the DB. The discovery of the wetland, the permit modification costs, and the construction impacts all fall within Section 2.8.5.4.5’s allocation to the DB. Additionally, GP 1-04.4(5)(l), (p), and (q) exclude permit delays and environmental commitment changes resulting from the DB’s design choices from equitable adjustment. SL 9727-218 is a Written Determination under GP 1-04.5; the protest window expired approximately December 26, 2025. LTR 338 is 35 days late.

3. Risk

Strengths

  • Section 2.8.5.4.5 directly allocates permit modification costs to the DB — both paragraphs support denial
  • The JARPA update confirms most changes are design-driven, not solely from the “new” wetland — attribution is deficient
  • Wetland 26.55L was identified in the pre-bid WSAR (E10a, Table 3) at 0.20 acres; this is an expanded delineation, not a new discovery
  • Section 2.8.5.4 required the DB to independently verify all Sensitive Area boundaries — the verification obligation is squarely on point
  • GP 1-02.4(1): wetlands are surface conditions discoverable by observing indicator species; LTR 175 demonstrates this (Juanita Creek wetland found by observing skunk cabbage)
  • LTR 338 is 35 days past the GP 1-04.5 protest window — procedural bar is a clean, independent defense
  • WSDOT’s response to both wetland discoveries (SL 107 and SL 128) used an identical Section 2.8.5.4.5 framework — consistent and documented
  • Billing records show costs were quantifiable by October 2025, undermining Skanska’s “permit delay” excuse for the 5-month gap
  • GP 1-04.4(5)(l)(p)(q): excluded changes — permit delays/environmental commitment changes from DB design choices
  • DSC theory would fail: $1.5M aggregate deductible; $230,919 is far below threshold; surface condition; burden of proof on DB
  • Basic Configuration Change theory would fail: Section 2.8.5.4.5 is the specific provision; avoidable-cost exclusion in GP 1-04.4(3); Section 2.8.5.4.2 (streams) has an explicit BCC carve-out that Section 2.8.5.4.5 deliberately omits

Potential Weaknesses

  • Crane causation (LTR338-5): the factual link between wetland boundary and crane configuration has not been independently verified; mitigated by strong legal defense even if causation were proven
  • WSDOT’s role as permittee in coordinating with ACE could be characterized as “WSDOT caused the change” — mitigated by Section 2.8.5.4.5’s allocation framework
  • DRB may view the procedural bar as technicality and address the merits; WSDOT should have both the procedural and merits arguments ready

Pre-empted Counter-Arguments

IDCounter-ArgumentWSDOT Rebuttal
CA-1 Basic Configuration Change — Impact Area Line shifted due to expanded wetland Section 2.8.5.4.5 is the specific provision controlling newly-discovered Sensitive Area costs; it controls over the general BCC mechanism. Section 2.8.5.4.2 (streams) has an explicit BCC carve-out that Section 2.8.5.4.5 deliberately omits. DB caused the condition by failing its verification obligation.
CA-2 Differing Site Condition — Wetland not shown in WSAR Wetlands are surface conditions (observable indicator species). The $1.5M DSC aggregate deductible applies. Wetland 26.55L was listed in E10a at 0.20 acres — the DB had actual notice of a wetland in this area. DB had the verification obligation to confirm boundaries.
CA-3 OIC — Permit modification constituted a directed change WSDOT coordinating the Section 404 permit as permittee is not direction to the DB. No OIC was issued. The DB cannot convert its own verification failure into an owner-directed change.

4. Chronology

WSDOT
Skanska
Milestone
Jun 2025 – Mar 2026 Full timeline →
Date Event
Pre-bid WSAR (E10a) identifies Wetland 26.55L at 0.20 acres near NF Perry Creek — E10a Table 3
Pre-bid Contract requires DB to independently verify all Sensitive Areas prior to HVF/HVSF installation — RFP Section 2.8.5.4
2025-04-11 Skanska LTR 175 — Notice of newly discovered wetland at Juanita Creek West (pattern / parallel issue)
2025-06-05 Wetland delineation prep work begins at NF Perry Creek (OneAtlas billing, Phase 000008)
2025-06-27 Skanska LTR 205 — Notice of newly discovered wetland at NF Perry Creek West; cites Section 2.8.5.4.5; reserves cost/time rights
2025-07-22 WSDOT SL 9727-128 — Acknowledges LTR 205; cites Section 2.8.5.4.5; requests figures, quantification, mitigation plans, restoration plans, and cost/time substantiation
2025-07-16 OneAtlas billing entries reference “Wetland 26.55L” directly — confirms expanded delineation of known wetland, not new discovery
2025-10-17 JARPA Update finalized — Summary of Changes covers 10+ wetlands/creeks; most changes are design-driven. Cost substantiation was available by this date.
2025-12-12 WSDOT SL 9727-218 — Closes matter; notes no substantiation provided in 5 months; “WSDOT can only conclude there is no merit”
~2025-12-26 14-calendar-day protest window expires under GP 1-04.5. No protest filed by Skanska.
2026-01-09 U.S. Army Corps of Engineers approves Permit Modification #3 (NWS-2020-235-DOT)
2026-01-30 Skanska LTR 338 — Disagrees with closure; provides $230,919 cost breakdown (PCO 145); requests OIC. 35 days past protest window.
2026-02-20 WSDOT SL 9727-274 — Response to LTR 338
2026-03-06 Skanska LTR 368 — Notice of Protest 017; requests 14-day extension for supplemental
2026-03-11 WSDOT SL 9727-291 — Acknowledges protest; denies extension; supplemental due March 20, 2026
2026-03-20 Skanska supplemental due (14 calendar days from protest; extension denied)
~2026-04-10 WSDOT written determination due (21 calendar days after supplemental per GP 1-04.5)

5. Cost & Time

Cost Breakdown (from LTR 338, PCO 145)

ComponentAmountNotes
Administrative costs (Atlas Permit Update) $50,425.23 Delineation, SAVL addendum, JARPA updates, ETF coordination. JARPA covers 10+ wetlands; no allocation methodology provided.
Future design costs (ACE restoration plans, Ecology mitigation) Unquantified Speculative; permit compliance obligation under Section 2.8.5.4.1.
Crane cost delta (80T → 110T Kobelco + oiler + mob/demob) $124,489 Causation not independently verified; Section 2.8.5.4.5 allocates regardless.
Total Claimed $230,919.07 Future costs not included in total.

Schedule Impact

None claimed. Skanska reserves the right to assert schedule impact if the critical path is affected. GP 1-04.4(5)(l) and (p) would exclude permit-related delays from equitable adjustment; GP 1-08.8 provides that delays in obtaining Governmental Approvals are not grounds for time extension.

Relief Requests and Disposition

#Relief RequestedWSDOT Disposition
1 Reopen matter and address administrative costs + construction impacts Denied — SL 218 closed; protest window expired; Section 2.8.5.4.5 allocates costs to DB
2 Process OIC to incorporate updated permits Denied — No OIC issued or warranted; WSDOT’s permit coordination is permittee role, not direction
3 Equitable adjustment — administrative costs ($50,425) Denied — DB obligation under Section 2.8.5.4.5; attribution deficient
4 Equitable adjustment — future design costs (unquantified) Denied — Speculative; permit compliance obligation under Section 2.8.5.4.1
5 Equitable adjustment — crane impacts ($124,489) Denied — Section 2.8.5.4.5 allocates costs to DB; causation not demonstrated
6 Total equitable adjustment ($230,919.07) Denied — No entitlement on any component

Related issue: P018 (Juanita Creek West Wetland) is a parallel protest using the identical contract framework. The denial of P017 and P018 must be consistent — WSDOT’s correspondence has been consistent across both (SL 107, SL 128, SL 191/247, SL 218 all cite Section 2.8.5.4.5).