Construction / Commercial Litigation / Business & Employment Law

Woolford Kanfer Proves Termination of GC was Wrongful

Woolford Kanfer represented a GC on a $35 million project involving the construction of a classroom building at a state-run university in southeastern PA. When the project was approximately 60 percent complete, the government terminated the GC alleging that the work was severely behind schedule and that the GC was responsible for the incomplete building envelope allowing water intrusion. The government argued that the GC failed to comply with work directives it issued and manipulated the CPM schedule to conceal the true extent of delays. After terminating the GC, the government demanded that the GC’s surety take over completion on the GC’s behalf. The surety complied and completed the project approximately five months after the original contract completion date. The GC sued the government alleging wrongful termination. After a 2.5-week trial, a panel of administrative judges agreed that the termination was wrongful and that the GC was not the cause of delays or for the state of building completion. The GC and the government then entered into a settlement agreement in which the government compensated the GC for damages due to the wrongful termination.