Hunt Construction files $27M lawsuit against subcontractor for delays on Austin, TX hotel

Dive Brief:

  • Hunt Construction is suing one of its subcontractors for $27 million in delay-related charges for construction on what will be the largest hotel in Austin, TX, according to the Austin American-Statesman.
  • The general contractor's lawsuit alleges that Cobb Mechanical Contractors did not adequately staff the $350 million Fairmont Austin project, causing it to fall behind schedule. Hunt, which is suing Cobb's bonding company as well, also claims that Cobb's work was subpar in some areas.
  • Developer Manchester Texas Financial Group said that neither the delays nor the lawsuit will prevent the 37-story hotel from opening on schedule this August and that any schedule problems have been resolved.

Dive Insight:

While lawsuits are common between general contractors and owners, large subcontractors have so much potential impact on the quality and schedule of the work — particularly on projects as large as the Fairmont — it's no surprise that they would also be held responsible for costly delays as well.

Last month, New York City's Governors Island Trust filed a $5 million lawsuit against Turner Construction and one of its subcontractors, allegedly for shoddy work performed on the island's bridge, ferry and seawall. The trust claims that subcontractor Ocean Coastal Consultants Engineering's design flaws cost the trust hundreds of thousands of dollars to repair.

And in Florida last year, a group of subcontractors took a multimillion-dollar hit when a condominium association in West Palm Beach sued them and Kolter Signature Homes for $22.5 million in construction defect claims. Kolter and the subs settled with the association, but the subs were left with almost half of that bill.

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Filed Under: Commercial Building Legal/Regulation Corporate News
Top image credit: Wikimedia, LoneStarMike