Construction projects are multifaceted, complex and may involve more than one contractor and sub-contractor. When disputes regarding the scope of the construction, additional work, design, payments and more arise, litigation can ensue. Even though the parties may have the option to resolve the issues through mediation or arbitration, some may still require construction litigation to reach resolution.
Louisiana construction firms and businesses will find it interesting to learn that recently a construction firm working on a new building at a college has filed a suit in the amount of $25 million. The construction firm is alleging that Delta College substantially increased the scope of their work on a project after construction had already commenced.
The firm notes in its lawsuit that there were substantial issues, defects and deficiencies in the original design. Due to these deficiencies, practically every trade involved in project encountered problems. As a result, the cost increased from the original $35 million bid to nearly $40 million.
The firm notes that, at times, they had to undo work they had already completed. The college, on the other hand, has alleged that the construction company placed a low bid, knowing very well that there is no such thing as a prefect design. Among other allegations, the firm has accused the college of fraudulent misrepresentation and of withholding critical information.
Given the complexity of construction projects, the millions of dollars involved and the nuance of construction litigation, it is important to communicate as much as possible. Nonetheless, for any firm involved in a similar dispute, the advice of an experienced construction litigation attorney may be needed.
Source: The Record, “Builder Sues Delta College,” Alex Breitler, June 30, 2013.