Aviation Issues Outside California Due To Contract Dispute

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Contract Disputes on Monday, July 11, 2016.

Whether related to small business endeavors or contracts worth a half-billion dollars or more, work may be disrupted when disagreements arise between the parties to an agreement. An ongoing contract dispute between an international airport based outside California and a construction company slated to build a new terminal apparently threatened work deadlines before a recent resolution was achieved. Often effective representation and aggressive negotiation can help companies avoid construction delays when disputes occur.

The new 30-gate terminal is part of a projected construction deal estimated at more than $600 million. It seems that the concrete company initially awarded the job walked away from the project during the contract dispute, thus clearing the air for a new company to step in. The company that was involved in months-long negotiations with the aviation board was apparently part of a business program that focuses on businesses owned by women and/or minorities.

The company that was supposed to do the work apparently filed a grievance against the construction company overseeing the entire project. The grievance stated that the construction company had requested an unfair profit share from the contractor. It also claimed that inappropriate performance requirements were imposed.

The prime contractor is said to have refused to negotiate a fair price in line with the scheduled project. In January 2016, permission was reportedly sought from the aviation board to replace the prime contractor with another company. However, before a decision was made, the prime contractor chose to stop pursuing the job. Any California business owner facing a similar multi-party contract dispute can secure the assistance of an experienced business and commercial law attorney in order to protect bottom line interests and pursue a reasonable solution.

Source: nola.com, "Armstrong Airport settles construction contract dispute, avoiding delay", Katherine Sayre, June 30, 2016

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