Any business contract has the potential to be challenged in some way down the road. For complex construction projects, the costs and scopes involved can be extremely great. Florida residents and businesses have seen many such situations over the years. Such contract disputes can result in lengthy and costly business litigation, requiring a judge’s input before final decisions are reached.
Delays and additional costs are two common reasons leading to conflicts in construction or development contracts. One particular construction company, based in California, has faced many such disputes in different cities around the country. One project involved a new MGM Resort hotel in Las Vegas that was ordered to be demolished this past May after the structure was found to be inherently unsound, despite being built to more than half its height by the time of the ruling.
In a more recent case, the company’s dispute with the Massachusetts Department of Transportation ended with an $80 million award in its favor. The issue related to overcosts and time delays in Boston’s Big Dig project, which was completed several years ago. The litigation ruling ended 15 years of conflict between the entities. The construction company is currently vying for a project to replace the Alaskan Way Viaduct in Seattle and the Washington State Department of Transportation has indicated that any construction management contracts will be created with multiple conflict resolution opportunities already in place.
Many factors can affect the successful outcome of development contracts. This is the case for any company, small or large. Business owners wishing to protect themselves may wish to consult with an attorney before finalizing their business contracts.
Source: KUOW.org, “Seattle Tunnel Partner Wins $80 Million Dispute Over Boston’s Big Dig,” John Ryan, July 21, 2014