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Construction litigation could result from contract disputes

Subcontractors in Arizona might be able to sympathize with some out-of-state subcontractors who have yet to be paid for work they already completed. The contract disputes involve local governments, a general contract and other parties. In addition to a criminal investigation, construction litigation could also occur if the disputes are not dealt with to the satisfaction of the parties involved. 

City officials where the construction project took place received a warning early on from an employee of the general contractor via email. He claimed that funds were diverted from the projects for the personal use of company officials. His claims were dismissed as the ramblings of a disgruntled former employee who was fired. However, the man claims that he quit when he discovered the discrepancies.

In the meantime, work continued on the dorms at the University of Wisconsin-Baraboo/Sauk County campus. Subcontractors did not receive the payments they were due. Finally, the complaints from subcontractors were too numerous to ignore.

They filed liens against the property that total approximately $750,000. Local government officials deny the claims because they say they paid the general contractor in full and are not responsible for paying the subcontractors. The general contractor claims it was not paid in full.

The stage is set for both construction litigation and the criminal investigation. Ultimately, it could be up to the courts to determine who is telling the truth. The same could be said of any lawsuit filed by subcontractors here in Arizona. It would be in their best interest to be represented by counsel to ensure that their rights are protected.

Source: wiscnews.com, "Warning preceded dorm contract dispute", Tim Damos, Feb. 4, 2016

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