The Metro Flood Diversion Authority has reached a $57 million settlement with its primary construction contractor, ending a dispute that threatened to delay the completion of the region's flood protection project. The 13-member board unanimously approved the agreement with Red River Valley Alliance on Tuesday, clearing the path for the diversion to meet its 2027 completion target.
The settlement eliminates multiple construction claims that were pending before a technical dispute review board, including a contentious issue over the use of epoxy-coated rebar in concrete structures1. Rather than pursuing lengthy litigation, the parties agreed to resolve all outstanding disputes through the lump-sum payment.
"This is a positive development for the project as it allows us to move forward with a clean slate to complete this necessary flood protection," said Cass County Commissioner Tony Grindberg, the board chairman1.
The $57 million will be drawn from the project's contingency budget, leaving the overall cost unchanged1. Payments will be tied to substantial completion of individual project components, including $7 million for the Diversion Outlet and Rush River Inlet, and $5 million each for the Maple River and Sheyenne River aqueducts1.
The primary dispute centered on concrete reinforcement standards. ASN Constructors, the design-build arm of Red River Valley Alliance, began incorporating epoxy-coated rebar in July 20241. Structures built before that date with uncoated rebar will receive protective coating treatments throughout the project's 30-year maintenance period1.
"Through our small leadership team discussions, the parties were able to reach this technical solution, without the need to remove and replace previously completed structures, which helps to keep the project on time and prevents economic waste," said Jason Benson, who became executive director in February1.
The settlement comes as the diversion project has completed more than 80% of its Red River Structure, the largest of three control structures1. The agreement eliminates the need for the Technical Dispute Review Board, which had been delayed since May 2024 while awaiting guidance on open meeting requirements2.
Both the authority and Red River Valley Alliance have new executive leadership, creating what Benson described as "an opportunity for a collective review of past and present disputes"3. The parties have established additional check-ins and collaborative approaches designed to reduce future conflicts.
The FM Area Diversion, when complete, will provide flood protection for the Fargo-Moorhead metropolitan area through a 30-mile channel that diverts floodwaters around the cities during high-water events.
