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Posted Jan 18, 2012, 2:52 PM
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You know I have even a better idea, research. 
Steel Firm's Woes Snag WTC
Wall Street Journal | JANUARY 18, 2012 | By ELIOT BROWN
Quote:
Some of DCM's problems appear to have stemmed from costs for the transportation hub, pictured.
Long beset by delays and cost overruns, construction at the World Trade Center site faces another potential snag: the financial struggles of the company responsible for erecting the massive steel skeletons of two towers and a $3.4 billion transportation hub.
Some of DCM's problems appear to have stemmed from costs for the transportation hub, pictured.
For months, the Port Authority of New York and New Jersey has been quietly advancing money to the contractor responsible for fabricating and putting up steel for the projects, which include One World Trade Center, according to people familiar with the matter.
The company, DCM Erectors, has more than $700 million worth of steel contracts at the site. The firm has told the Port Authority that it is facing cash-flow problems in part because of the project's complexity, and also because of the amount of time it takes for the agency to approve extra costs.
Fearing holdups, the Port Authority also has been paying some of DCM's subcontractors directly, the people said.
The company's role is crucial: Its workers erect the steel for each floor of the towers at a rate of about one floor a week before other crews can follow. DCM also owns a plant in New Jersey where steel is fabricated.
A spokesman for the Port Authority, Steve Coleman, declined to say how much money the public bi-state agency has advanced DCM.
"The Port Authority has and will continue to work closely with DCM in order to maintain its construction effort," he said in a statement, adding that DCM is still delivering steel.
Larry Davis, DCM's president, said he is working with the Port Authority and doesn't expect construction to stop. "I'm sure we're all going to work out the issues down the road," he said.
The New York-based DCM is one of the city's largest steel companies and has worked on many skyline-shifting projects, including the Time Warner Center and Bloomberg LP's Lexington Avenue headquarters.
It has been involved in the World Trade Center site for years.
The company was a contractor involved with the demolition of the site after the Sept. 11, 2001, terrorist attacks. And it was on hand at the early stages of rebuilding, as it won a contract to put up steel for the site's signature tower, One World Trade Center, in 2006.
In addition to holding the steel contract at One World Trade Center, DCM is putting up steel for 4 World Trade Center, a 72-story tower. And in 2009, Phoenix Constructors, the now-defunct construction management company for the Santiago Calatrava-designed PATH station and transportation hub, awarded DCM its biggest contract, a $339 million job for the station.
The company's troubles speak to some of the larger problems with the site's redevelopment, which is running billions of dollars over original budget projections. The transportation hub alone has a price tag of $3.4 billion, up from an expected $2 billion in 2007.
DCM's woes stem largely from the station, which features giant steel arches that soar over a large train hall, and the 1,776-foot-tall One World Trade Center. Officials aren't as concerned about 4 World Trade Center.
In part, DCM appears to have underestimated costs: For instance, the company has told the Port Authority it believes it may lose money on One World Trade Center, people familiar with the matter said.
Another factor is that it can take months for DCM to negotiate additional costs with the Port Authority. DCM has numerous claims for added payment—known as "change orders"—pending with the Port Authority, the people said.
Amid the cash-flow problems, DCM's main lender, Canada-based Maple Trade Finance, has taken control of some of the company's assets, said Carole-Ann Miller, Maple Trade's president. Ms. Miller declined to specify the assets but said the company is working "closely" with DCM: "We are confident that we are going to have a resolution in the short term."
John Gallagher, a spokesman for Tishman Construction, the general contractor overseeing construction of the towers and hub, said DCM hasn't caused any delays and the contractor is working overtime on its projects.
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