Tutor Perini on the hook for $42.4M more in Philadelphia hotel dispute

Dive Brief:

A Philadelphia court hit Tutor Perini with an additional $42.4 million judgment for its actions during the construction of the dual-branded W and Element hotels in the city, according to a court filing.
The Court of Common Pleas for Philadelphia County awarded the sum July 1 to Clayco subsidiary Ventana DBS, which specializes in window systems and curtain walls and worked as a subcontractor on the project.
The court found “Ventana was forced to navigate numerous obstructions and obstacles, stemming from Tutor Perini’s pervasive material breaches of contract,” the ruling said. That included not clearing debris left by other subcontractors so Ventana could transport window-wall components and not adequately supervising concrete pours, which resulted in Ventana striking rebar during window installation, according to the judgment.

Dive Insight:

The order follows an April ruling on the same project that awarded Chestle Development approximately $174.6 million in damages from Tutor Perini for delays stemming from defective concrete work during construction.

Tutor Perini was awarded a $239 million contract to build the hotel in 2015. The 51-story, 755-room building opened in 2021 after Chestle asserted it had faced more than 890 days of delays.

In the July 1 ruling, the court also found that Tutor Perini concealed its knowledge of concrete defects in bad faith, then tried to blame Ventana for the resulting delays.

A spokesperson for Tutor Perini told Construction Dive via email, “We strongly disagree with the court’s latest ruling in this matter and believe it does not reflect the merits of the case. As we indicated this past April, we intend to appeal and will continue to pursue all appropriate legal remedies.”

Bob Clark, Clayco’s executive chairman, said the ruling vindicated his subsidiary.

“This ruling is an important affirmation of the facts and of the principles that govern successful project delivery,” Clark wrote in an email to Construction Dive. “We are pleased that the Court awarded Ventana $42 million in damages and recognized that Tutor Perini failed to properly coordinate its subcontractors while acting in bad faith by concealing its knowledge of significant concrete defects.”

Damages in the award included nearly $7.5 million in an unpaid subcontract balance, as well as approximately $12.7 million in interest and penalties. The court also awarded Venata attorney fees and litigation costs.