Salvage company says state owes them more for removing a sunken ship

HONOLULU (HawaiiNewsNow) A marine salvage company that took on a job it says ended up costing far more than expected is asking the state to pay what it believes it’s owed. But the agency in charge says the business did not follow its rules.

Read more M7.1 earthquake strikes Japan, no tsunami threat to Hawaii

Hawaiʻi Island-based Pacific Underwater Construction said it sank about $600,000 into removing a roughly 77-foot sunken ship from the Ala Wai Small Boat Harbor.

Now, the business says it is struggling to stay afloat.

“It’s been hell, man. You know, this job, it’s pretty much wiped us out as far as the amount of money we put into it to get it done for the state. Time, effort, soul, blood,” company VP of operations Connor Reid said.

Reid added the company bid about $350,000 for the job last year, but the vessel was heavier than expected because its bilge was filled with concrete.

“That was one of the obstacles why it was so heavy,” Reid said.

Because of the extra operational costs, the company asked the state for nearly $240,000 more.

The Department of Land and Natural Resources told Pacific Underwater Construction in a letter that the weight was not verified by a certified disposal company and lacked proper documentation.

“We had a couple of cranes on it with their, they have scales on the cranes and we got the numbers. We sent that information to them and they just, you know, it wasn’t good enough for them. I’m not sure,“ Reid said.

DLNR also said the amounts and information the company provided were changed multiple times, and noted bidders are responsible for inspecting the vessel before bidding.

Read more Police search for suspect in Waipahu machete assault

“We did an inspection on it. There’s only so much you can do with as far as sending the scuba diver down there to go check it out,” Reid explained.

Company president Dan Smith added, “Why can’t we trust the information that was given to us? You know, why can’t I take that for being the truth?”

Pacific Underwater Construction ended up finishing the job more than 100 days beyond DLNR’s 30-day deadline.

The department can now ask a judge to make the company pay damages for each day past the time limit.

“At this point, what’s the matter? You know, it’s a pile that’s so huge. You’re going to throw another toothpick on top,” Smith said.

The company can file an appeal in court, but Reid and Smith said they cannot afford the associated legal fees.

Read more Man arrested in Wahiawa attempted murder investigation