Construction Firm Settles False Claims Allegations

Granite Construction Company will pay the United States $367,500 to resolve allegations that it overcharged on some DOT and Army Corps of Engineers projects between 2006 and 2008, DOJ announced.

The Justice Department announced that Wastonville, Calif.-based Granite Construction Company has agreed to a settlement and will pay $367,500 to the United States following an investigation of alleged false claims related to federal construction projects across the country. Granite Construction specializes in roads, tunnels, bridges, airports, and other infrastructure projects.

The settlement resolves claims that the company overcharged the government on some construction projects between 2006 and 2008 for the U.S. Department of Transportation and the Army Corps of Engineers. "Specifically, in certain instances, Granite sought price increases in the form of change orders and requests for equitable adjustment which were inflated because the general liability and workman's compensation insurance rates used to support the adjustments included added amounts or 'cushions' that were not actually incurred by the company and therefore should not have been charged to the federal government," according to the DOJ news release, which said Granite Construction disclosed the potential overcharges to the Justice Department.

The investigation and settlement were handled by the Civil Division of the Department of Justice and the DOT Office of Inspector General.

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