NEW YORK CITY—Adding another chapter to its bitter feud with Forest City Ratner, Skanska has quit the Pacific Park job. The contractor had been under contract as the construction and factory manager for the first residential tower—known as B2 and slated for development using modular construction—at the complex, which was previously known as Atlantic Yards.
The dispute became public last month when Skanska issued a cease and desist order to the 157 workers it had on the site. That measure prompted a series of lawsuit filings by both sides.
According to a written statement, Skanska notified FCR on Aug. 8th of its intent to terminate its role in the project “if the B2 owner did not address its many material breaches under the agreement. That August notice was issued after a series of unsuccessful efforts by Skanska throughout 2014 to resolve the significant commercial and design issues facing the B2 project. Consistent with its behavior, the B2 owner again took no action to remedy its breaches, leaving Skanska no choice but to terminate the agreement and pursue its rights to be paid for the millions of dollars in extra costs it has incurred to keep the project going and its modular factory workers working.”
Adds Skanska USA Building co-COO Richard Kennedy, “Today is an incredibly disappointing day. Our company has a long history of working with our clients through all kinds of challenges so, at the end of the day, we deliver the best product possible to our clients. While the B2 project certainly has its issues, we were hopeful that our client and partner would address them so we could move forward with building much-needed affordable housing in Brooklyn. But we could not continue to incur millions of dollars in extra costs with little hope that Forest City would take responsibility for fixing the significant commercial and design issues on the project. We pride ourselves on being an innovative company and we will continue to build using prefab and modular techniques to move the construction industry forward. This issue will not deter us from continuing on that journey of innovation.”
In response, Forest City Ratner Cos. president and CEO MaryAnne Gilmartin says, “We believe in modular and have worked tirelessly to get B2 back on track since Skanska blind-sided us by ceasing construction and putting 157 workers on the street last month. Skanska has responded with inaction and inertia, trying to leverage us financially by stonewalling B2's progress. These are deplorable and disappointing tactics that show remarkable indifference to the wellbeing of these workers and the project. We will continue to rigorously pursue our options through the courts to get B2 built."
It was unclear at press time whether FCRC plans to hire a new developer or whether the company will be able to meet the project deadline in light of this Skanska dispute. B2 was initially slated for completion by 2035 but under pressure from the city and state to deliver the project—primarily because of its 2,250 affordable housing units—FCRC pledged to have the project finished by 2025.
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