1. Executive Summary
Decision Requested
Issue written determination denying Protest 018 and all relief requested.
- Recommendation: Deny — the $14,311 claim is the cost of performing the DB’s own contractual verification obligation
- Cost Exposure: $14,311.00 (administrative costs — Atlas invoices PCO 112)
- Risk Level: Low — four independent contract provisions support denial; SAVL evidence documents the obligation performed
Core Question
Is the DB entitled to recover the administrative costs of preparing a Sensitive Area Verification Letter addendum and JARPA updates for a wetland discovered during routine environmental fieldwork that was not shown in the pre-bid WSAR?
The answer is no — on four independent grounds. First, Section 2.8.5.4 required the DB to independently verify all Sensitive Areas. The $14,311 represents the cost of preparing BY-CRE-02512 (the SAVL Addendum), which IS the verification obligation itself — Atlas even coded the invoices to Phase 000008: “Sensitive Area Verification Letter.” Skanska is asking WSDOT to pay for its own contractual duty. Second, Section 2.8.5.4.5 allocates costs for Conceptual Plans impacts on previously unidentified Sensitive Areas to the DB. Third, GP 1-02.4(1) makes the DB solely responsible for site conditions discoverable from a reasonable site examination — the wetland was found by observing skunk cabbage, a surface-visible indicator species. Fourth, GP 1-04.1(1) confirms the Contract Price includes the cost of all Governmental Approvals and compliance obligations.
The wetland was discovered April 2, 2025 by Mike Foster (OneAtlas) during a routine field check. The formal protest (LTR 369, March 6, 2026) protests WSDOT’s denial in SL 9727-247 (January 23, 2026). WSDOT acknowledged the protest (SL 9727-292, March 11, 2026). Supplemental due March 20, 2026.
2. Skanska Assertions and WSDOT Position
Skanska Assertion
On April 2, 2025, Skanska’s environmental subconsultant (OneAtlas) discovered a previously unidentified wetland during routine fieldwork at Juanita Creek West. Skanska notified WSDOT per Section 2.8.5.4.5 (LTR 175, April 11, 2025). WSDOT acknowledged the discovery as “consistent with the requirements of RFP Section 2.8.5.4.5.” Skanska incurred $14,311 in administrative costs for the SAVL addendum, JARPA updates, and wetland figures through Atlas environmental consulting.
WSDOT Position
Factual background is acknowledged. The discovery was made through surface observation of skunk cabbage — a wetland indicator species visible without subsurface investigation. The DB’s independent verification obligation under Section 2.8.5.4 anticipated exactly this type of surface-condition discovery. The $14,311 represents the cost of preparing BY-CRE-02512 (the SAVL Addendum) and associated JARPA updates — work required by the verification obligation. Atlas coded the invoices to Phase 000008: “Sensitive Area Verification Letter” — the DB’s own records confirm this is the cost of performing the contractual duty.
Skanska Assertion
Section 2.8.5.4.5, Paragraph 1 begins “In the event the Design-Builder proposes changes…” — establishing a threshold condition. The clause “or the Conceptual Plans will impact previously unidentified Sensitive Areas” is a subordinate clause that only activates when the DB has proposed changes. Because Skanska did not propose any changes, the cost allocation does not apply. (LTR 343, Section II)
WSDOT Position
WSDOT does not agree. Paragraph 1 creates two independent triggers joined by “or”: (a) impacts from DB-proposed changes, and (b) previously unidentified Sensitive Areas impacted by the Conceptual Plans. The clause “or the Conceptual Plans will impact previously unidentified Sensitive Areas” is a standalone trigger — not subordinate to the “proposes changes” condition. Reading the clause as subordinate would render it surplusage: if the trigger required DB-proposed changes, there would be no need to separately address Conceptual Plans impacts on unidentified Sensitive Areas. The Lower Juanita Wetland satisfies the second trigger independently — it is a previously unidentified Sensitive Area that would be impacted by the Conceptual Design for the realigned stream channel.
Skanska Assertion
Section 2.8.5.4.5, Paragraph 2 allocates costs only when the DB works “outside the Impact Area Line or outside of permitted impacts due to an ATC or design change.” WSDOT acknowledged in SL 247 that neither occurred here. Therefore Paragraph 2 does not apply and there is no cost allocation provision.
WSDOT Position
Paragraph 2 addresses a different scenario and is not the only basis for denial. The cost responsibility arises independently from (1) Section 2.8.5.4 (the DB’s verification obligation — the SAVL Addendum IS the contractual duty), (2) Section 2.8.5.4.5 Paragraph 1 (Conceptual Plans clause, separately triggered), (3) GP 1-02.4(1) (discoverable surface conditions), and (4) GP 1-04.1(1)(b)(c)(d) (all-inclusive Contract Price). There is no gap — there are four independent reasons the costs are allocated to the DB.
Skanska Assertion
Section 2.8.5.2.2 “is specifically applicable to circumstances involving ATCs or design changes” — not to discoveries arising from routine fieldwork. Since 2.8.5.2.2 does not apply and the “subordinate clause” reading eliminates 2.8.5.4.5, there is a gap in cost allocation that should be resolved in the DB’s favor. (LTR 343, Section III)
WSDOT Position
There is no gap. WSDOT acknowledges Section 2.8.5.2.2 requires an ATC or design change — that is not disputed. But the inapplicability of one provision does not create entitlement under the whole contract. Four independent provisions allocate costs to the DB: (1) Section 2.8.5.4 (verification obligation), (2) Section 2.8.5.4.5 Paragraph 1 (Conceptual Plans clause), (3) GP 1-02.4(1) (discoverable surface conditions), (4) GP 1-04.1(1) (Contract Price inclusive). The contract was designed with a comprehensive allocation framework. Reading the contract to have a gap in the wetland-discovery scenario would require ignoring all four of these provisions simultaneously.
Skanska Assertion
WSDOT’s pre-bid environmental documentation (WSAR, JARPA figures) did not identify a wetland at this location. “Actual site conditions differ from those represented in WSDOT’s baseline documentation.” The wetland was found “through no action or change proposed by the Design-Builder” — the resulting administrative costs should be compensable. (LTR 343, Section IV)
WSDOT Position
WSDOT acknowledges the Brickyard WSAR (E10b) did not identify a wetland on the left bank of Juanita Creek at MP 21.90. This does not establish entitlement. The WSAR is a Reference Document under GP 1-02.4 — it does not guarantee the completeness of wetland identification. Section 2.8.5.4 exists precisely because WSDOT expected the pre-bid documentation might be incomplete and required the DB to independently verify all Sensitive Areas. The DB performed this verification: the original SAVL (BY-CRE-00366, March 2024) assessed 32 wetlands and 9 streams and confirmed all consistent with the WSAR. The April 2025 discovery triggered the SAVL Addendum (BY-CRE-02512) — exactly the process the contract established. The same wetland scientist (Abi Schuetze) worked on both the original SAVL and the addendum.
The wetland was discoverable: it was found by observing skunk cabbage, lady fern, and solanum — all surface-visible indicators. The SAVL Addendum wetland determination form notes conditions were drier than normal in the three months preceding the April 4, 2025 field visit, yet the wetland was readily identifiable (water table to surface, Depleted Matrix hydric soil indicator). GP 1-02.4(1) assigns these costs to the DB regardless of whether the DB proposed changes.
Skanska Assertion
Skanska requests WSDOT reconsider the denial of $14,311 (PCO 112) and acknowledge that the wetland was not identified in the project baseline environmental documentation. Reserves the right to pursue formal protest and DRB proceedings if reconsideration is denied.
WSDOT Position
WSDOT acknowledges the Brickyard WSAR did not identify this wetland (factual). This does not establish entitlement — the WSAR is a Reference Document, not a guarantee. WSDOT’s position in SL 9727-247 is affirmed. Reconsideration is denied. Skanska’s reservation of protest and DRB rights is noted under GP 1-04.5.
3. Risk
Strengths
- Primary defense (strongest): The $14,311 IS the cost of the DB’s SAVL obligation (Section 2.8.5.4). Atlas invoices are coded to Phase 000008: “Sensitive Area Verification Letter.” Skanska is asking WSDOT to pay for Skanska’s own contractual duty. LTR 343 does not address this argument.
- Section 2.8.5.4.5 Paragraph 1 (Conceptual Plans clause) creates an independent second trigger — no DB-proposed change required
- GP 1-02.4(1): wetland was discovered by observing surface-visible indicator species (skunk cabbage) — textbook discoverable surface condition
- GP 1-04.1(1)(b)(c)(d): all-inclusive Contract Price covers SAVL and permit compliance work
- BY-CRE-00366 proves verification obligation was performed as contemplated; the April 2025 discovery triggered the SAVL Addendum exactly as the contract foresaw
- WSDOT’s response to all wetland-discovery issues (SL 107, SL 128, SL 191, SL 247) has been consistent — SL 247 is well-reasoned and documented
- Precedent risk: conceding $14,311 here would weaken the denial of $230,919 at Perry Creek (P017) — identical framework, identical provisions
- Small dollar amount relative to full claim; the principle governs P017 too
Potential Weaknesses
- SL 247 made admissions (Section 2.8.5.2.2 not applicable; wetland in grading path; Conceptual Design would have impacted it) that Skanska could leverage — mitigated by responding to LTR 343 with Section 2.8.5.4 verification obligation argument (which LTR 343 has not addressed)
- Skanska’s “subordinate clause” argument (LTR343-4/5) is the strongest new argument — directly addressed by the “or” creates two independent triggers analysis
- WSAR did not identify the wetland — acknowledged, but WSAR is a Reference Document, not a warranty
- The wetland grew 12.5x in delineation (1,127 sq ft noticed → 14,176 sq ft delineated) — could be used to argue WSAR was seriously deficient; mitigated by Reference Document disclaimer and surface-condition discoverability
SAVL Evidence Integration (Key Proof)
| Document | Significance |
|---|---|
| BY-CRE-00366 (original SAVL) | Proves DB performed Section 2.8.5.4 verification obligation. Assessed 32 wetlands, 9 streams. Found all consistent with WSAR. “No changes are proposed.” DB’s own cover page cites “SPEC SECTION: 2.8.5.4.” |
| BY-CRE-02512 (SAVL Addendum) | Documents Lower Juanita Wetland (Cat II, 0.33 ac) and UNT to Sammamish. This IS the verification letter updated after discovery. The $14,311 is the cost of preparing this document. Atlas Phase 000008 coding is on the invoices. |
| Schuetze overlap | Same wetland scientist (Abi Schuetze) worked both the original SAVL (OSG, 2023–2024) and the SAVL Addendum (Atlas, April 2025). Confirms continuity of the verification process. (Reserve for DRB cross-examination — do not foreground in letter.) |
4. Chronology
| Date | Event |
|---|---|
| Nov–Dec 2019 | WSDOT WSAR fieldwork for Brickyard segment. Identifies Wetland 21.94R (right bank). No wetland on left bank at MP 21.90. Winter survey — skunk cabbage not in season. (E10b WSAR) |
| Nov 2023–Mar 2024 | OSG conducts field verification for SAVL “Remaining Areas.” 32 wetlands, 9 streams assessed. “No additional features identified. All consistent with WSAR.” (BY-CRE-00366) |
| 2025-04-02 | Mike Foster (OneAtlas) discovers new wetland on left bank of Juanita Creek West during routine field check. Observed skunk cabbage, lady fern, and solanum — surface-visible indicator species. ~1,127 sq ft initial estimate. |
| 2025-04-11 | Skanska LTR 175 — Formally notifies WSDOT. Cites Section 2.8.5.4.5. Reserves cost/time rights. |
| 2025-05-02 | WSDOT SL 9727-107 — Acknowledges discovery “consistent with requirements of RFP Section 2.8.5.4.5.” Requests figures, quantification, mitigation/restoration plans. Denies cost/time on schedule grounds (GP 1-08.3(6)). |
| 2025-05-05 | SAVL Addendum Rev 00 (BY-CRE-02512) initial submittal to WSDOT |
| ~2025-05-16 | 14-calendar-day protest window from SL 107 expires. No protest filed. |
| 2025-06-19 | SAVL Addendum Rev 01 — Lower Juanita Wetland delineated at 14,176 sq ft (Cat II, 0.33 ac) — 12.5× larger than initial notice |
| 2026-01-05 | Atlas cost breakdown (PCO 112): $11,827.21 direct + 21% markup = $14,310.92. Four Atlas invoices (Phases 000008, 000017). |
| 2026-01-06 | Skanska LTR 311 — Disagrees with SL 191; claims $14,311; requests OIC. Admits: “At the time of WSDOT SL-107, Skanska did not disagree with WSDOT.” |
| 2026-01-23 | WSDOT SL 9727-247 — Denies $14,311. Rules out Necessary Basic Configuration Change. Cites Section 2.8.5.4.5 Conceptual Plans clause; GP 1-04.1(1)(b)(d). |
| 2026-02-06 | Skanska LTR 343 — Requests reconsideration. Introduces “subordinate clause” argument. Reserves protest and DRB rights. |
| 2026-03-06 | Skanska LTR 369 — Notice of Protest 018. Claims $14,311 in administrative costs. |
| 2026-03-11 | WSDOT SL 9727-292 — Acknowledges protest; directs compliance with RFP Section 1-04.5. |
| 2026-03-20 | Skanska supplemental due (14 calendar days from LTR 369) |
| ~2026-04-10 | WSDOT written determination due (21 calendar days after supplemental per GP 1-04.5) |
5. Cost & Time
Cost Breakdown (PCO 112, from LTR 311)
| Component | Hours | Amount | Notes |
|---|---|---|---|
| SAVL addendum preparation (Schuetze) | ~44 hrs | $5,060 | Phase 000008 — Sensitive Area Verification Letter |
| Wetland figures (Baker) | ~19.5 hrs | $2,217 | |
| JARPA/IAL updates (Harrison) | ~35 hrs | $3,976 | |
| QC (Boeholt) | 4 hrs | $460 | |
| Wetland updates (Watson) | 0.5 hrs | $116 | |
| 21% markup | $2,484 | ||
| Total | $14,311 | All Atlas invoices coded to Phase 000008 (“Sensitive Area Verification Letter”) |
Schedule Impact
None claimed. Skanska reserved time rights in LTR 175 and LTR 311 if critical path is affected. SL 107 denied on grounds that no Critical Path delay was demonstrated (GP 1-08.3(6), GP 1-08.8, GP 1-04.4(5)(h)).
Relief Requests and Disposition
| # | Relief Requested | WSDOT Disposition |
|---|---|---|
| 1 | Reconsider denial of $14,311 (PCO 112) | Denied — Costs are cost of DB’s Section 2.8.5.4 verification obligation; all-inclusive Contract Price (GP 1-04.1(1)) |
| 2 | Acknowledge wetland not in baseline documentation | Noted — Brickyard WSAR did not identify left-bank wetland at MP 21.90 (factual). Does not establish entitlement — WSAR is a Reference Document, not a guarantee. |
| 3 | Process as OIC | Denied — No OIC issued or warranted; WSDOT has not directed a change |
Precedent note: This issue is the smaller of two parallel wetland-discovery protests. P017 (Perry Creek) claims $230,919 under the identical contract framework. Conceding $14,311 here would seriously undermine the denial of P017. WSDOT’s consistent position across SL 107, SL 128, SL 191, and SL 247 is the foundation for both denials.