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$27M Construction Lawsuit Filed Against Subcontractor

Hunt Construction filed a lawsuit against a subcontractor company, Cobb Mechanical Contractors, for delay-related charges. The company is working on what will be the largest hotel in Austin, Texas and is expected to be done in August. The subcontractor’s delays could have caused a huge problem for the project that needs to stay on track.

The general contractor’s suit claims that the subcontractors did not hire enough workers to complete the 37-story hotel project on time. They also claimed that the subcontractor’s work was subpar in some areas. The $350 million project is still currently on track to be completed on time in August, regardless of the current lawsuit and they delays. Unfortunately, contractors and subcontractors get sued for stuff like this all the time.

Contractor/Subcontractor Lawsuits

Lawsuits are generally common between general contractors and owners, but on projects as large as this one it’s no surprise that the subcontractor would be held responsible for any big delays. On large projects such as this, subcontractors do have the potential to make an impact on the quality and on the schedule of the work.

Other Lawsuits Against Subcontractors

In February, New York City’s Governors Island Trust filed a lawsuit against Turner Construction and one of its subcontractors for $5 million. The lawsuit states that the contractors did shotty work on the island’s bridge, ferry and sea wall. The company claims that the subcontractor’s engineering design plans are flawed and they ended up costing hundreds of thousands of dollars to repair.

In Florida last year a group of subcontractors was sued for millions of dollars when the company they were working for, Kolter Signature Homes, got hit with a multi-million dollar lawsuit. In the $22.5 million construction deficit claim, Kolter settled with the condo company and split the bill almost in half with the subcontractors.

Photo courtesy by Wikimedia Commons by Norbert Nagel