Back in 2014, I posted a blog about the problems contractors were having digging the tunnel for Route 99 in Seattle. Bertha, the boring machine, hit a pipe and some rocks and got stuck, causing two years of delay. Well, that problematic situation, now a $624 million lawsuit, has wound its way through the courts and the Seattle Tunnel Partners (“STP”) is blaming the slow down on the pipe they [...]
Don’t Get Caught Holding the Bag: Hold the State Liable When General Contractor Fails to Pay on a Public Project.
According to a quick Google search the term holding the bag" comes from the mid eighteenth century and means be left with the onus of what was originally another's responsibility. Nobody wants to be left holding the bag. But that is the situation our client (subcontractor) found themselves in when upon completion of a public project the general contractor went out of business before paying the remaining amount due and [...]
Stop! The Kiewit-Turner joint venture created to build the VA’s hospital near Denver stopped work on December 10 after the Civilian Board of Contract Appeals ruled that the VA breached the contract. Kiewit-Turner claims that the VA owes it over $100 million on the project. And, given the appeals board’s recent ruling entirely against the VA, the claim may get some traction. This project has been plagued with [...]
A recent case out of Georgia highlights the importance for subcontractors to follow the contract terms when submitting a payment. In SCI, Inc. v. Engineered Concepts, Inc., a subcontractor sought additional compensation of $300,000.00. The upstream contractor agreed that the $300,000.00 was owed, but refused to disburse that amount to the subcontractor, claiming that the subcontractor failed to satisfy the contractual terms for requesting payment. Not surprisingly, the case went [...]
As we wind down 2012, it’s a good time to look back and see where we've been. If the Construction Contractor Advisor had any themes beyond construction law, they were to know the terms of the contract and comply with those terms. Know Your Contract Every week I read about disputes that were caused by the parties’ differing interpretations of their obligations under a contract. These disputes often times relate to: Scope [...]