The Newark City Council has approved a payment in settlement of a contract dispute with a contractor that built a city reservoir.
This week the Newark City Council approved the payment of $3.6 million to Donald Durkin Contracting. Durkin will receive another $7 million from the city’s insurance carrier.
Interim City Manager Roy Lopata says the city’s payment will come from the general operating budget. He says no tax hikes or service cuts are needed because city departments have made cuts that will offset the loss.
Jim Durkin of Durkin Contracting wouldn’t comment, and attorneys couldn’t be reached.
The city fired Durkin before the reservoir was finished.
Information from: The (Wilmington, Del.) News Journal, http://www.delawareonline.com
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