Industry Spotlight

Interface Consulting News:

  • Interface sponsor Virginia CLE 34th Annual Construction and Public Contracts Law Seminar in Charlottesville, VA
  • Interface consultants photograph charity golf teams at the Associated Builders and Contractors of Greater Houston 2013 Fall Golf Tournament, benefitting the ABC Scholarship Foundation

Construction Litigation

Wayne County files lawsuit against jail site contractor

myFOXDetroit.com

"...Wayne County and the Wayne County Building Authority electronically filed a lawsuit against AECOM Services of Michigan, blaming the firm for cost overruns and unauthorized changes in the construction of a new county jail....The county seeks $154 million from AECOM. In the suit, Wayne County claims the actions taken by AECOM forced cost increases and eventually lead to the termination of the project."

AEDC files lawsuit against contractor over foundation fight

NewsChannel 10

"The Amarillo Economic Development Corporation is trying to prevent area taxpayer dollars from going to waste by fighting back and filing a lawsuit against an Amarillo contractor....The AEDC has decided to start repairs immediately, a $1.6 million cost it hopes to pass along to CIB....'We believe that the contractor and whoever they were involved with, their engineers should bear that cost and that's what the lawsuit it about.'"

Construction Disputes

Reynoldsburg schools settle dispute with construction company

The Columbus Dispatch

"A Michigan construction company will forgo hundreds of thousands of dollars in payment from Reynoldsburg schools to settle a contract dispute over work delays on new elementary and high schools in the district....[T]the school district agreed to pay $979,000 to Synergy Group and others owed for unpaid work. The construction company had sought $1.7 million."

Mareel dispute settled

Shetland News

"The protracted and sometimes bitter dispute between Shetland Arts and construction firm DITT over the huge cost of delays building Lerwick's cinema and music venue Mareel has been settled out of court....The £13.5 million building opened in August last year 18 months behind schedule and £1.5 million over budget....Shetland Arts and DITT have been at loggerheads over who is responsible for the delays, both accusing each other of incompetence."

Construction Defects

San Diego (405) Freeway work delayed by faulty retaining walls

Los Angeles Daily News

"A federal review quietly released in August of the massive $1 billion project identified the collapsed wall as the "single biggest factor in extending the completion date to September 2014." U.S. Secretary of Transportation Anthony Foxx also noted that a second major factor was an unexpected need for relocations of utility lines."

Keystone XL Study Warns of Defective Segments on Pipeline's Southern Leg

InsideClimate News

"...The Oklahoma-to-Texas oil pipeline is nearly completed....[A]ctivists, led by the consumer advocacy group Public Citizen, allege in a report...that shoddy construction on the new line has caused more than a hundred defects that TransCanada has had to fix. They believe the "anomalies," even after repairs, could leave the pipeline vulnerable to breaks and spills."

Construction Costs

Delays double cost of utility power project

KTVA CBS 11

"Municipal Light & Power officials apologized to Anchorage Assembly members...for a $4.9 million cost overrun on a $5.8 million capital project....The site preparation and pipeline upgrade project was completed this summer as part of a $300 million plan to construct a new power plant....[T]he utility was aware of the multi-million dollar overrun weeks ago, but kept it from Assembly members even as the body moved to award the additional $200 million necessary to complete the new power plant."

Westinghouse clashes with Georgia Power over nuclear plant cost overruns

Pittsburgh Post-Gazette

"The judge called it a "highly choreographed 'race-to-the-courthouse' " of immense consequence. At stake is $900 million, and the question of who is to blame for delays and cost overruns at the first nuclear construction project in the U.S. in 30 years....The project, originally estimated to cost $14 billion, is now between 18 and 21 months behind schedule and $900 million overbudget."

Eskom bills contractors over delays

Independent Online

"Eskom has taken action to punish contractors responsible for the delay in commissioning its Medupi power station, making good on its warnings earlier this year that it would hold them to account....The two biggest contractors...have been served a bill for cost overruns and to pay Eskom for stepping in to manage their contracts. Some contractors, including Hitachi Power Africa, had agreed to pay delay damages"

Construction Economics

Report links defects litigation as cause of condo building slump

Denver Business Journal

"An independent report examining the lack of condominium construction in the Denver area concludes that a number of factors held the market down during the recession but the major factor inhibiting its recovery going forward is a statewide construction defects litigation law that builders perceive as too onerous to allow them to be profitable."

Construction rising, 'not quite over the hump'

U-T San Diego

"Local contractors, still suffering from little or no profits after five years of economic downturn, hope for improvement next year as they celebrate some big projects of the last two years....many companies have stayed in business by submitting 'aggressive' bids that benefit public and private clients with lower costs. But that makes it 'much more difficult' to complete a project if the money runs low."

Industry Spotlight

Rise in Construction Defects Leads to Litigation, Costly Settlements

Owners and contractors are battling it out in the legal arena as multi-million dollar construction defect claims are winding their way through the courts. Civil, infrastructure, and building projects are seeing the most defect litigation, some of them many years after project completion. While some lawsuits are just getting started, others are being averted through costly settlement agreements at the expense of the contractors. Read on to discover which projects are experiencing defects, the myriad of issues involved, and how owners are fighting back through litigation to combat rising repair costs.

$250-million runway at LAX falling apart, lawsuit contends

Los Angeles Times

"A $250-million runway at Los Angeles International Airport, rebuilt six years ago, is riddled with construction defects, including cracks, exposed steel reinforcing bars and deteriorating concrete....The mounting problems, including the runway's failure to meet Federal Aviation Administration construction standards, could disrupt future flight operations...."

Bridge Deck Defects Spark Legal Storm

PaintSquare

"A bridge deck in Oregon is coming apart just a year after completion, triggering a coast-to-coast legal showdown over who is to blame....The dustup involves Portland's Morrison Bridge, which underwent a $4.2 million rehabilitation project....Shortly after the deck was finished in March 2012, it started cracking and shifting, and fasteners were popping loose...."

Community center's roof needs $1 million replacement

ThisWeek Community News

"The cost will be $1 million to fix the moldy, soggy, failing roof at the Worthington Community Center....'This is one of the worst designs I have ever seen,' roofing consultant Gary Mays told Worthington City Council....The roof has leaked for years, and even a casual look at the roof reveals nails coming loose and a wavy roof surface."

DelDOT gets $5.25 million in Indian River Bridge settlement

Delaware State News

"...[I]n January 2011, the state filed a suit against the bridge design firm and its subconsultant citing 'geotechnical errors.' This time around, the bridge was rooted with piers instead of ramps....The agency asserted that MACTEC failed to account for the soil settlement under the earthy embankments on the inlet and provided erroneous information in its report."

Pulte agrees to $5.6M lawsuit settlement

Delaware County Daily Times

"National homebuilders Pulte Homes recently finalized a $5.6 million settlement for a 2008 lawsuit alleging numerous defects with a Newtown Square townhouse development site....[T]he bulk of the complaint dealt with construction defects that allowed water infiltration into homes at the development. Those issues were never addressed to the association's satisfaction,...necessitating the lawsuit."

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