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Forest City and Skanska face off in separate suits

By Konrad Putzier

Developer Forest City Ratner and construction firm Skanska are taking their dispute over cost overruns at a Pacific Park modular tower in Brooklyn to court.
Sixteen minutes after Skanska filed a lawsuit against a Forest City Ratner affiliate yesterday (Tuesday), the developer filed its own lawsuit.

A rendering of Barclay's Center and Pacific Park
A rendering of Barclay’s Center and Pacific Park

Forest City Ratner is seeking damages and declaratory relief from Skanska for “multiple failures and missteps as the construction manager for B2 BKLYN,” which is slated to become the tallest modular tower in the world.

Construction work at the 363-unit tower developed by Forest City Ratner has been interrupted for almost a week after Skanska stopped work last Tuesday.

In essence, the dispute between the firms is over who gets to foot the bill for recent cost overruns at the site. While Forest City Ratner demands that Skanska stick to the agreed-upon price despite the overruns, the construction firm wants to renegotiate the terms of the contract.
Forest City Ratner accused the construction firm of violating its contract by incurring “massive delays and cost overruns,” and requested the New York Supreme Court to declare Skanska’s work-stop order void.

“Our priority is to re-open our factory and put the employees that Skanska wrongfully furloughed back to work so we can resume construction on B2.  Skanska’s unilateral action has barred construction from continuing, and this lawsuit is the first of many steps we intend to take to get this building moving again,” Forest City Ratner’s CEO MaryAnne Gilmartin said in a statement.

Skanska, in turn, demanded $50 million in damages for alleged changes to the construction plan made by the developer.
“The work at the B2 Project is currently stopped because Forest City Ratner has steadfastly refused over many months to engage in an honest dialogue about the serious commercial and design issues facing the project,”  co-chief operating officer for Skanska USA Building Richard Kennedy said in a statement. “Slinging mud at Skanska in the press and in legal documents that misstate the actual facts is not going to get the B2 Project moving again or put the modular factory workers back to work.”

The lawsuits come two months after Forest City Ratner committed itself to finishing the entire Pacific Park project by 2025 at the risk of a $5 million fine from the city. займ на карту

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