Search
 

Subcontractor Must Pay Nearly $8.9 Mil to Contractor for Delaying Projects

HOUSTON-A contractor, who claims his business went under due to project delays, will be getting nearly $8.9 million from a steel supplier. The legal decision could put Harrop Construction back in business, says the firm's lawyer.

By Jack Burney | Updated on January 03, 2001

HOUSTON-In a precedent-setting case that will have contractors buzzing, US District Court Judge H. W. Head Jr. is ordering Safety Steel Service and related corporations to pay $8.87 million to Harrop Construction Co.

The award to the veteran Houston contractor includes $2.2 million in compensatory damages and $6.6 in punitive damages. Head has ruled that Safety Steel Service “failed to meet key deadlines and commitments on three major construction projects” in and around Corpus Christi, TX, in 1995 and 1996. He has faulted Safety Steel for “the admission of breach of contract, with clear evidence of misrepresentation, deceptive trade practices, and fraud.” Safety Steel is a division of CMC Steel Fabricators and its parent, Commercial Metals of Dallas.

Harrop had completed the projects – four to five months late – but the effort has put the company out of business. “Harrop expended all its resources to overcome the problems and complete the projects,” David Peden, attorney for Harrop, told GlobeSt.com. “At that point, Harrop had lost its bondability and didn’t have the capital to go on. But this award could put them back in business.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.