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The Oregon Department of Transportation and Aumsville-based contractor Capital Concrete Construction have agreed to terminate the contract for the $9.4 million Salt Creek Falls Tunnel project.

ODOT will pay CCC up to $350,000, including $184,700 retained during the project, for work already performed as well as purchase of equipment and materials at the project site, ODOT spokesman Rick Little said.

“In the end, we felt like we negotiated a real fair deal for the people and the contractor,” he said. “We feel like we’re ready to start on the final phase of the project.”

ODOT also will pay up to $148,000 to third-party suppliers and subcontractors for unused materials, design and other work performed, Little said. He noted that the settlement does not release CCC from third-party liability.

CCC first encountered project problems in early 2013, when heavy snowfall on Oregon Route 58 in Lane County caused a delay. The project had been slated for completion by September 2013, and when CCC said it could not guarantee completion until November, ODOT put the project on hold. Officials were concerned that a winter delay would restrict usage of the site if work was not completed. The contractor disputed the number of days that snow prevented work from being done.

“They basically showed us a schedule where they couldn’t guarantee completion (last) year,” Little said. “And we couldn’t take a chance that construction wouldn’t be finished.”

As part of the settlement, ODOT and CCC negotiated compensation for precast concrete decking materials and engineering work performed, Little said.

“They were also willing to negotiate a termination,” he said. “This helped us avoid a costly and lengthy claims or litigation process.”

ODOT is working with Eugene-based OBEC Consulting Engineers on plans and specifications for the project’s second phase, including construction of two more bridges on Route 58. Other remaining work includes installation of two message signs, completion of final paving and striping, installation of bridge railings and completion of electrical revisions, Little said.

ODOT will select a contractor by the end of the year. That would allow construction to begin in the spring and be completed by fall, he said.