The $1.5 billion Comcast Technology Center in Philadelphia is running as much as $67 million over budget, stemming from cost overruns incurred by L.F. Driscoll, the project’s general contractor.
That’s according to an 8-K filed by Liberty Property Trust, the new building’s developer that also owns 20% of The Comcast Technology Center via a joint venture with Comcast.
Citing details noted in its 2017 Annual Report, Liberty Property Trust said it had been notified by the contractor about the cost overruns and additional construction costs connected with completing the project.
“Recently, the contractor advised the Company that it currently believes that these costs could total as much as $67 million in excess of the guaranteed maximum price payable to the contractor under the GMP [Guaranteed Maximum Price] Contracts,” Liberty Property Trust noted. “The Company intends to vigorously pursue all remedies to enforce the third-party contractor’s obligations under the GMP Contracts and to seek to recover any amounts expended by the Company or the joint ventures in excess of their contractual obligations."
Comcast announced plans for the new structure, located at 1800 Arch Street, in early 2014. At 1,121 feet and 60 stories, the Comcast Technology Center will complement and rise above the Comcast Center.
In addition to serving as a technology hub for Comcast, the building will also include a Four Seasons hotel (with 200-plus rooms) and provide the studio and office operations of NBC 10/WCAU and Telemundo 62/WWSI. The building will contain 1.8 million square feet of space, including 1.3 million square feet of office space, more than 200,000 square feet of hotel space, and about 3,770 square feet of retail space.
A Liberty Property official told Philly.com that the cost overruns would not alter current plans to have the Comcast Technology Center offices open this summer, and the hotel to open in late fall.
“Our top priority is completing this magnificent project and work is proceeding without interruption. This issue will not affect the project’s delivery,” the official told Philly.com, characterizing this as a “contractual issue” between Liberty Property Trust and the general contractor.