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Mediation Results in Settlement between Contractor and Jefferson Healthcare

Thursday, January, 4, 2018

A dispute between Aldrich & Associates and Jefferson Healthcare’s Emergency and Specialty Services building ended recently after mediation resulted in a $550,000 settlement.  The settlement was approved by the Jefferson Healthcare commissioners, and ends a disagreement concerning the worth of change orders and costs associated with the building.  The change included a catch-allcovering all modifications and costs associated with the building that were not yet accounted for.


According to the contractor, the changes were worth $1.825 million, but the hospital disputed that amount and assigned a much lower value.  The hospital requested voluntary mediation in an effort to avoid litigation of the matter.


After mediation led the two parties to agree to an amount of $550,000, commissioners from the hospital voted unanimously to approve that offer.  It took them approximately an hour to do so, but they did not discuss any further details of the settlement after the approval meeting.  Those participating in the meeting were instructed not to discuss the settlement publicly, either.


The agreement was, however, presented to the Peninsula Daily News by Jefferson Healthcare after the meeting.  According to the copy of the agreement, the $550,000 is due to Aldrich & Associates by mid-January.


The goal of using mediation to settle the dispute was to avoid litigation at all costs because it would “cost way more money” regardless who won.  Those involved with the settlement believe the arrangement is fair and adequate for both parties.  The settlement did not include any issues related to the building’s HVAC system, which is reportedly still being find-tuned because neither party believed it was reasonable to tie the two issues together.