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Judge Says Contractor Can Walk Away From Building VA Hospital In Aurora

AURORA, Colo. (CBS4) - Contract workers may be looking for new jobs because construction has officially stopped at the new VA Hospital in Aurora.

"We've been cheated, we've been lied to," said wounded Vietnam Veteran Artie Guerrero.

A federal appeals judge ruled the general contractor could walk away from the VA Medical Center project because of a contract breach.

VA HOSPITAL Aurora VA Medical Center
The VA Hospital under construction in Aurora (credit: CBS)

Kiewit-Turner says the Veterans Administration only budgeted $600 million for a design costing $1 billion.

The appeals board agreed with Kiewit-Turner that the VA had no plans to ask for more money.

It's unclear how much of the project is complete with the VA saying 60 percent and Kiewit-Turner saying 30 percent.

Kiewit-Turner claims its spent more than $100 million out-of-pocket just to keep things going.

Rep. Mike Coffman has been a harsh critic of how the VA is handling the project. He says he'll work with other Colorado lawmakers to find the additional money to get the hospital built.

"What the VA is saying is, 'We'll pay you the $107 million that you're owed. Let's negotiate a 60-day, short term bridge contract for a couple more months and right at the beginning of that, that Army Corps of Engineers will step in and negotiate a long-term contract with KT to bring the project to completion,' " said Coffman.

Coffman said the VA has a contingency fund that would help with costs but it is unclear whether it can tap into it.

Coffman believes what is likely is that he will go back to Congress next spring and ask for more money.

In the meantime, the only VA hospital in Colorado has 128 beds for 500,000 veterans. Guerrero said it can take months to get an appointment.

When Guerrero returned from Vietnam in a wheelchair the VA promised it would take care of him. Now he's frustrated because he doesn't see any progress.

"It's at a dead standstill, nothing is working, can you believe that?" said Guerrero. "I'm so frustrated now I can't get the right words out to say, 'Veterans Administration, get out of this business because you don't know how to run it.' "

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