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Construction Company Faces Breach of Contract Litigation

As students across the country begin preparing to go back to school, colleges and universities are putting the finishing touches on classrooms and dormitories that underwent renovations over the summer. However, instead of a cause for excitement, a new dormitory at Philadelphia’s Drexel University has become the basis for a hard-fought legal battle.

Contractor Hunter Roberts Construction Group launched a civil action in late July against subcontractor Berlin Steel Construction Company, claiming that Berlin Steel breached its contract and incurred extra costs for its construction work. According to the website of the Cedar Rapids business attorneys from Arenson Law Group, PC, one company has grounds for a civil action if another company violates their contract. Contracts are agreements between two individuals to meet certain conditions or perform specific tasks, so when they are breached, victims often feel cheated of their due. That is when a case of litigation or lawsuit can come into play.

Complaints from Hunter Roberts cited careless mistakes and negligence as the causes of the breach of contract. According to the plaintiff’s attorneys, Berlin Steel caused the ending price of the subcontract to be $10,842,002, although the original contract stated an initial price of only $9.7 million. In a series of incidents beginning last August, Berlin Steel employees accidentally dropped large steel columns to the ground from a height of several stories, crushing a trailer and causing sidewalk damage. Both accidents forced a shutdown of the work site and a reevaluation of safety procedures, precautions which increased the cost of the work and led to unanticipated expenditures for Hunter Roberts in excess of $220,000.

If you or someone you know has been wronged by a breach of contract, you may wish to contact an experienced attorney to protect your rights and resolve the issue in a manner that will not negatively affect your company.