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Contractors and city officials in construction litigation

City officials in California often enter into business contracts with construction contractors in order to make structural improvements in a community, but sometimes, disputes arise between parties regarding the contract’s terms and work completed. In fact, officials in another state had signed an agreement with contractors who were scheduled to complete work on building that serves as a beachfront community center. Now, the project is on hold while the city officials and contractors battle over legal issues in court.

The scheduled project was to cost more than $23 million. One of the allegations against the contractors is that they ran over on estimated costs in excess of half a million dollars. City officials also say the contractors did not fulfill their agreement to complete work by specific deadlines.

City’s website says facility will open in the fall

The city maintains a website for the beachfront facility. At this time, the site states that there have been delays in the building process but the facility is scheduled to re-open in the fall. The building company has complaints of its own, including stating that city officials failed to inform them of hazards on the job site, including a known presence of asbestos.

The initial intent was to settle out of court

As often happens in California cases between local officials and contractors, the parties involved in this case were hopeful that they would be able to settle their disagreement out of court. However, construction litigation ultimately became a dual course of action with the contractors filing a lawsuit and city officials filing a countersuit. The problems will now be solved under the court’s discretion.