Horry County, S.C. DOT bungled highway extension project, cost firm $42M: Lawsuit

A construction firm involved with the third phase to expand S.C. Highway 31 in Horry County is suing the state’s transportation agency, saying its micromanagement cost the company millions in overruns.

Flatiron Constructors is suing the county and S.C. Department of Transportation for breach of contract, interference and negligence, according to a claim filed Nov. 1.

According to the company — which inked a state contract in 2013 to build seven bridges on the road also called Carolina Bays Parkway — it’s absorbed $42 million increased costs due to repeated S.C. DOT missteps, including:

• Untimely reviews of engineering plans
• Excessive oversight and “overzealous inspection” of infrastructure
• Requiring additional work outside the contract’s scope
• Failure to provide quality control and assurance on the project
• Failure to remove employees from another subcontract who “repeatedly impeded” Flatiron’s ability to complete its work

Horry County is named in the suit because officials in 2007 signed an agreement with the state giving the it oversight of the project.

Long-term plans call for connecting the parkway with U.S. 17 in North Carolina — a half-billion dollar venture. Horry County has set aside $125 million through the third round of its RIDE funding to build out its portion. Design is expected to start in the spring.

An undated press release on Flatiron’s website gave some details of the work, noting at the time it was supposed to be completed by the end of 2016. In reality, Flatiron didn’t finish up until early November 2019.

“Crews are expected to clear 117 acres of forest over several months — but the most time-intensive work will be construction of a bridge over the Atlantic Intracoastal Waterway at the north end of the project,” the release states. That involved a 3,600-foot-long precast concrete and steel girder.

County and SCDOT officials could not immediately be reached for comment, but an affidavit attached to the lawsuit says the DOT “fell below the standard of care” in overseeing the project.

Kevin O’Connell, an engineer with more than 40 years of experience, was retained by Flatiron’s legal team to review project documents.

Flatiron is asking a judge to require the county and S.C. DOT to pay a total of $42 million in damages.

This story was originally published November 12, 2022 at 1:38 PM.