PRACTICE AREA(S): Construction, Construction Litigation, General Litigation
CLIENT / INDUSTRY: General Trades Contractor
ATTORNEY(S): Rick Goddard; Tom O’Donnell
Situation Summary
During the construction of a new, seven-building high school complex, a dispute developed when our client, the general trades contractor, was delayed for two months because the site owner, a school district, and its construction manager, and site contractor failed to deliver the site on time. Additionally, they had violated our client’s contract because much of the specified project infrastructure was not in place when the site was ultimately delivered. The site owner and its team failed to provide temporary power, pressurized water, temporary lighting, sufficient access roads, lay-down and staging areas, and parking lots.
Despite the project delays and breaches of contract, the owner refused to extend the contract time or pay any increased project costs. After our client had accelerated performance and finished the project as originally scheduled, the owner refused to pay the contract balance and instead asserted a claim for $2.6 million in liquidated damages.
Calfee Approach
Calfee filed an action on behalf of the general trades contractor against the school district and site contractor to recover the outstanding contract balance, retainage, accumulated interest, and damages. After an exchange of project documents, Calfee reached an agreement to mediate all claims to avoid further litigation and expense.
Resolution
Following a full day mediation with a third party construction expert, the school district dismissed its claim entirely and agreed, with a contribution from the site contractor, to pay our client its contract balance, interest and additional costs.
The results described in each case study are dependent on the specific factual and legal circumstances of the matter described, and constitute neither legal advice nor a guarantee of similar results with respect to any other matter.