Seattle’s $2.4bn light rail programme has been thrown into fresh controversy following the suspension of talks with contractor elect Modern Transit Constructors and the subsequent resignation in November of the client’s project director, Paul Bay.

The most recent wrangles on the troubled contract look certain to delay the project by up to a year. Talks with Modern Transit, a JV led by Modern Continental Construction with S A Healy/Impregilo/Hochtief/Parsons Transportation Group/Robinson Construction, broke down following the contractor elect’s estimate of $728M for the 7.2km long tunnel section of the project. The figure exceeds the client’s budget by some $200M. The Sound Transit Board has instructed its staff to "prepare options for how the board might approach alternatives to a Capital Hill/Portage Bay light rail tunnel".

Board chairman Dave Earling stressed that negotiations were suspended, not terminated. He said: "In October the board committed to only go forward with the tunnel if we knew we could pay for it. This time-out will help the board decide what the right next steps are."

Sound Transit staff were to report back as T&TI went to press with an explanation of why the tunnel estimate is different than what was budgeted for the project, including a review of the cost elements and bidding methods. Alternative options under consideration include a bridge crossing of Portage Bay that would substantially reduce the length of tunnelling in the project.

Construction JV project manager William R Phillips told T&TI: "We’re currently standing by waiting for the board’s decision on Sound Transit’s direction. We are anxiously waiting to see how these decisions will involve us."

Bay announced his retirement in a letter to Bob White, the executive director of Sound Transit, the day after the suspension of talks. The letter refers to "doubts about the project recently voiced by critics, including concerns about tunnel costs". He states his reason for leaving, saying: "I believe that fresh project leadership will provide the Sound Transit Board with a better chance of regaining the public confidence necessary to move forward."

Lyndon "Tuck" Wilson Jr will take over as interim director for Sound Transit’s Link light rail department. From 1990-1998 Wilson worked as project manager on the design and construction of the $1bn Tri-Mets Westside light rail extension in Portland, Oregon. The scheme included construction of a 4.8km long twin bore tunnel.