Wednesday, May 27, 2015

Contractor to reimburse PGW $2M for overcharged work

A suburban contractor found to have overbilled the city for road work is forking over $2 million to the city and PGW, the mayor’s office announced today.

Contractor to reimburse PGW $2M for overcharged work

The neighborhood office of Philadelphia Gas Works at 5230 Chestnut St in West Philadelphia. (Alejandro A. Alvarez / Staff Photographer)
The neighborhood office of Philadelphia Gas Works at 5230 Chestnut St in West Philadelphia. (Alejandro A. Alvarez / Staff Photographer)

A suburban contractor found to have overbilled the city for road work is forking over $2 million to the city and PGW, the mayor’s office announced today.

An Inspector General investigation into all PGW and city paving contracts spurred a red flag, and Danella Companies, Inc., of Plymouth Meeting, signed a no-fault agreement with the city to settle claims it over charged for construction materials for paving jobs.

“We were happy to work closely with PGW to ensure that contractors meeting their obligations,” said Inspector General Amy Kurland, in a news release.

“At a time when every dollar matters, it’s important that companies that have the privilege of doing business with the city and city-related agencies bill only for the work they have properly completed.”

The Inspector General’s investigation took a look Danella’s invoices and found that they provided an insufficient amount of concrete and asphalt for specified paving contracts and had overbilled PGW about $1.75 million.

About this blog
William Bender, a Drexel graduate who landed at the Daily News in 2007, has covered everything from South Philly mobsters to doomsday hucksters. He occasionally writes about local food trucks and always eats everything on his plate, whether it be a bloody rib eye or a corrupt politician. E-mail tips to benderw@phillynews.com
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David Gambacorta, has been a reporter with the Daily News since 2005, covering crime, police corruption and all of the other bizarre things that happen in Philadelphia. Now he’s covering the 2015 mayor’s race, because he enjoys a good circus just as much as the next guy. He’s always looking to get a cup of coffee. Send news tips and other musings on life to gambacd@phillynews.com
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