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Contracting business to shut down after Florida DOT default

On Behalf of | Aug 30, 2021 | Construction Liens

In Florida, when contractors negotiate a contract to perform construction work, there is significant risk involved. They must often lay out money and be reimbursed for extensive aspects of it. If the deal is with a reputable entity, there is generally no problem getting what is owed and everyone will walk away satisfied if the project is completed as requested. However, there are instances where disputes arise and companies face the prospect of legal battles and losing their entire business because of it. When dealing with any construction project large or small, it is important to be shielded and understand available recourse if there are disagreements.

Contractor will cease operating after dispute with Florida DOT

A contractor who had agreed to complete six projects for the Florida Department of Transportation (FDOT) is set to shutter its business after FDOT defaulted and did not reimburse the business for costs. The costs amounted to $10 million for a project that was worth just shy of $32 million. The business had been set to work on six separate projects for FDOT. All told, they were worth more than $200 million. Unfortunately, the company informed FDOT that it could not move forward due to financing issues.

According to the business owner, the project was for reconstruction of an interchange. There was significant back and forth with the FDOT about various problems, missteps, delays and extra expenses. FDOT stated that the business had defaulted. Because of FDOT’s alleged behavior, the business owner stated that it was forced to speed its work on the interchange to meet certain dates that were not in the contract. They say FDOT continually changed its plans. The contractor needed to essentially cannibalize itself by diverting its resources from other jobs to the FDOT project. With their finances in disarray, it decided to shut down.

Avoiding financial and logistical issues may require qualified assistance

It is wise to have a contract that will address any lingering concerns before the project begins. Even then, challenges might come up and it is vital to have a fundamental grasp of construction law and to be protected. Whether it is a public project or a private one, having professional guidance may be critical. This is true when negotiating the agreement, making sure it is adhered to or seeking legal remedies if it is not. Consulting with those experienced in these types of situations can be helpful to try and achieve a positive outcome and, in extreme cases, save the business.