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Pennsylvania company faces lawsuit for alleged breach of contract

5/22/2016 | Construction Blog, Real Estate Blog

On April 14, Wyatt, Inc., a subcontractor working for Turner Construction Company, filed a complaint against the company, alleging that it refused to pay for completed work and for a breach of contract. The plaintiff is seeking more than $5 million in damages via trial by jury.

In the claim, the subcontractor contends that the construction company did not adhere to the contract made between both companies when it failed to reimburse the subcontractor for the project’s expenses. As part of the contractual agreement, the subcontractor agreed to pay for the materials and labor needed for the 19-monthlong project.

However, because of unexpected disruptions and delays the subcontractor could not control, the project took more than three years to complete, which led to further expenses. Therefore, the plaintiff is holding Turner Construction Company liable for those expenses that it supposedly failed to pay, which amounts to $5,312,958.89, plus court fees, interest and other damages, according to the suit.

Whenever a large public or private construction project takes place, construction company owners and real estate developers face various responsibilities. Besides obtaining the necessary building permits and hiring various subcontractors to do the work, the construction company must complete contract negotiations and drafting, and iron out any problematic zoning issues. A local attorney who is knowledgeable in construction and land use laws could help construction company owners and real estate developers with these legal details. Working with an attorney could also prove beneficial to construction companies and real estate developers involved in a contract dispute. Such disputes could cause unexpected delays in a building project and threaten the company’s financial stability and success. However, a real estate attorney might be able to help to settle these types of disputes in an effort to get the company moving forward and completing the project on time.