Project-Wide Subcontractor Close-Outs
Conway & Mrowiec has successfully litigated and negotiated resolutions to substantial disputes involving complex project-wide subcontractor close-outs. Some examples of our work are:
- Power Plant. Defended against and resolved more than thirty lower-tier claims totaling more than $20 million on behalf of international EPC contractor on suspended power plant involving bankrupt owner.
- Manufacturing Plant. Successfully represented the owner who had terminated a design-builder because of cost overruns and endless delays in closing out over a dozen liening subcontractors, successfully litigating defective work claims against certain subcontractors, and favorably resolving the termination disputes with the design-builder at mediation.
- Retail/Hotel Complex. Litigated and mediated disputes for developer under GMP contract for construction of an upscale retail/hotel complex. Issues involve alleged acceleration, disputes regarding scope of the GMP and owner direct payment to subcontractors. Result was savings of more than $7 million from face amount of claims.
- Jail. On behalf of performance bond surety for wrongfully terminated general contractor litigated and negotiated subcontractor claims, litigated with public owner and against owner’s architect (as subrogee of owner). Recovery of over $13 million from owner, architect and subcontractors resulting in net positive surety recovery.
- Office & Warehouse Complex. On behalf of general contractor, litigated and negotiated subcontractor claims and litigated with public owner on new construction of office and warehouse complex. The project grew by change orders and claims from $53 million to $87 million and from two years to five years. Recovery of $13.25 million from owner and release from all subcontractors resulting in profitable project despite two separate litigations.
- Cultural Complex. Successfully mediated with owner a multimillion dollar dispute under a GMP contract for the construction of a cultural complex. Savings, the scope of post-construction audits, and the application of contingencies were among the issues mediated. Assisted client in resolving all subcontractor claims.
- Bank. Successfully mediated dispute with owner under GMP contract for construction of a bank on behalf of general contractor and resolved subcontractor claims. Issues concerned delay and additional project management expenses, disputed changes and contractor’s entitlement for corrective costs of subcontractor error as “cost of work.”
- School. Represented assignee of insolvent general contractor of school project in defense of more than thirty subcontractor claims and prosecution and recovery of contractor’s seven figure delay claim against public owner.
- Shopping Center. Successfully represented site improvement contractor for new large shopping center involving numerous mechanics lien claims of sub-subcontractors to insolvent subcontractor including litigating invalidity of subcontractor’s mechanics lien claim.