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)

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.