The City of Philadelphia and Philadelphia Gas Works (PGW) have reached no-fault agreements with three PGW contractors that failed to properly install concrete and asphalt over PGW gas lines after they were repaired or replaced.
An Office of the Inspector General investigation established that General Asphalt Paving Company of Philadelphia (GAP), Anthony Verrecchia & Sons, Inc. (Verrecchia) and Cedotal Construction, Inc. (Cedotal) billed PGW for paving work that did not satisfy the terms of PGW’s contracts with the companies. Core samples extracted from PGW project sites did not meet State or City standards for concrete and asphalt installation. All three companies fully cooperated with the OIG’s investigation.
“PGW ratepayers should not have to bear the burden of inflated street paving costs,” said Inspector General Amy L. Kurland. “It is our aim to make sure that companies charge PGW only what is necessary to keep our gas lines safe and secure.”
The companies have agreed to settle the matter with and PGW for a collective total of $735,000, but they deny any wrongdoing or breach of contract. All three companies have also signed corporate integrity agreements with PGW, certifying that they will fully comply with the regulations for installing asphalt and pavement. PGW may withhold payment from the companies for any future work deemed inadequate. The companies will also adopt written policies and procedures to help their employees understand and follow street-paving regulations. At least one hour of relevant training will be required for those who work on PGW contracts and projects.
“We wish to thank the Inspector General for her assistance in resolving this matter,” said Craig E. White, President and Chief Executive Officer of PGW. “We are confident that these agreements will correct past deficiencies and enhance PGW’s paving operations moving forward.”
The Executive Summary of the investigation can be found on the OIG’s website: www.phila.gov/ig/reports.