The contractor behind the long-delayed LAX Automated People Mover alleges the city improperly denied contract extensions and compensations as the project’s cost climbed by more than $1 billion.
LINXS Constructors, the contractor building the LAX Automated People Mover, filed a lawsuit against the City of Los Angeles on July 9, accusing the city officials of refusing to extend contract deadlines and reimburse the company for delays it says were outside of its control.
The lawsuit, filed in Los Angeles County Superior Court, centers on the 2.25-mile elevated rail system designed to transport passengers between airport terminals, parking facilities and regional transit connections.
According to court filings, LINXS argues the city improperly shifted responsibility for construction delays onto the contractor while denying requests for additional compensation and schedule extensions.
LINXS says repairs to faulty electrical equipment that powers the automated train system delayed testing and construction, contributing to mounting costs and repeated schedule changes. The contractor argues Los Angeles World Airports’ refusal to approve additional time and funding has placed the project at financial risk.
According to the lawsuit, LINXS warns it could become insolvent if the city continues to deny its claims, raising concerns about the project’s completion.
Previous disputes between LINXS and the Los Angeles World Airports resulted in hundreds of millions of dollars in settlements and contract extensions. However, both sides have remained at odds over responsibility for electrical-system issues that delayed testing of the train, according to LAist.
Los Angeles World Airports originally planned to open the People Mover before the 2028 Olympic and Paralympic Games, but years of delay have driven the project’s cost by more than $1 billion.
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Los Angeles County Superior Court will hear the case in December.