We used the Contract Disputes and Miller Acts to recover more than $4M for our client.
Our client was the electrical subcontractor on the $178 million Bassett Army Hospital contract at Fort Wainwright, Alaska. Our client incurred millions of dollars of increased costs caused by a variety of circumstances, including defective specifications and delay and disruption. Because both the prime contractor and the government were separately responsible for portions of our client’s increased costs, we designed and implemented a strategy allowing our client to recover more than $4 million.
We were able to negotiate an agreement with the prime contractor allowing our client to pursue certain claims in the name of the prime contractor directly against the U.S. Army Corps of Engineers. We quickly reached a settlement with the Corps on our client’s claims.
The prime contractor was still litigating a delay and disruption claim, among others, with the Corps. While the prime contractor’s appeal at the ASBCA was moving forward, we simultaneously pursued a Miller Act claim against the prime contractor to recover the additional costs for which the prime contractor was responsible. We then negotiated a settlement agreement with the prime contractor and surety, which included a payment to our client as well as a guarantee that our client would recover a specified minimum on its own delay and disruption claim, which the prime contractor was still litigating against the Corps. Along with the prime contractor, we then participated in a mediation with the Corps and settled the delay and disruption claim, resulting in a further payment to our client.
