Austin, TX (Law Firm Newswire) January 23, 2018 – A lawsuit has been filed by the general contractor building what is soon to be the largest hotel in Austin, against a subcontractor, seeking at least $27 million in damages due to the project allegedly falling behind schedule.
The Fairmont Austin, a 37-story hotel at 101 Red River Street, was originally scheduled to open in June 2017, but the opening has been pushed back several times, and the hotel is currently scheduled to open in early 2018. The developer said that the lawsuit had no effect on the timeline of the project.
Hunt Construction Group filed the lawsuit against Cobb Mechanical Contractors, accusing the subcontractor of not providing sufficient workers to keep construction of the 1,048-room hotel on schedule. Hunt also claimed that some of Cobb’s work was inadequate.
“Construction delays on such large projects are not surprising, and unfortunately, disputes often arise between contractors and subcontractors,” said Gregory D. Jordan, an Austin, Texas business litigation attorney with the Law Offices of Gregory D. Jordan, who has been involved with construction litigation in the Austin area for decades. Jordan notes that large developments such as this project seem particularly susceptible to litigation.
Hunt alleged that it provided Cobb with multiple notices that they were behind schedule before partially terminating its $31 million contract with the subcontractor. Cobb was contracted to install mechanical and plumbing systems for the hotel. The partial termination called for Cobb to focus its work on the upper floors and cease work on the first seven floors. Hunt said it had to secure a replacement subcontractor at additional cost. Hunt is suing for breach of contract, seeking damages in excess of $27 million, plus attorneys’ fees and court costs.
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