Big construction projects can mean big money for Illinois contractors, but they can also lead to a big headache if the owner claims the business caused defects in the project. Depending on the size of the project, the property owner could demand millions of dollars in compensation for the supposed negligence.
For example, a Michigan company has settled its dispute with the city of Carmel, Indiana, over construction of a concert hall there called the Palladium. The Carmel Redevelopment Commission sued Steel Supply & Engineering Co. in 2011, accusing the contractor of causing defects in the roof that caused huge delays and cost the city significant money in contractor claims.
The Palladium has a domed roof. The exact nature of the defect appears to involve a rip in the steel web that supports the dome, according to a news report. The CRC claimed that the problems with the roof set of a chain reaction of scheduling issues, so it appears that the defects did not allow work on other parts of the concert hall to go forward.
Terms of the settlement were not disclosed, but the CRC has reportedly spent more than $6 million on legal claims related to the Palladium project.
For its part, Steel Supply has said it was not responsible for the roof problems. The company blames the project engineer for creating a faulty design for the dome.
A construction company accused of substandard work could be asked to pay a hefty sum by the owner. If that happens, it will need a business law attorney to protect its rights and argue its side of the story.