Contractor locked out of San Jose hospital construction project

SAN JOSE, Calif. (KGO) -- A construction company has essentially been fired from a long-delayed hospital project in San Jose that cost taxpayers millions more than anticipated.

Santa Clara County has been embroiled in a dispute over delays with Turner Construction over a new hospital bed building and it took a dramatic turn Friday afternoon.

The county began posting signs at the site on South Bascom Avenue, closing down the construction site.

Turner Construction, one of the largest contractors in the country, has been accused of delays completing the 168-bed project. Those delays have been costing the county $100,000 a day or some $36 million a year.

Turner and the county have been in negotiations over a new timetable to finish the project, but those talks apparently have failed.

"They are suspended from the project and again will terminate Tuesday. We will look for a new contractor," said Paul Lorenzo, CEO of Santa Clara Valley Medicla Center. "We've made it very clear and are going to be very definitive about the delivery of this bed building."

This means that some 125 to 200 construction workers will be turned away Monday if they try to report for work. The County Board of Supervisors either Monday or Tuesday will formally fire Turner Construction.

That means the county will need to locate a new contractor to take over the job. No bid process will be involved. The county's goal is get the new facility completed as soon as possible. It was supposed to open next Friday, it's not even close.

The county has accused Turner of putting more attention on the Levi's Stadium project instead of on the hospital project.