A company hired to provide electrical supplies for a particular Connecticut city street project has sued a contracting corporation for $323,000. The project involving improvements to sidewalks, parking areas, landscaping and streets has reportedly been put on hold due to delays by this contracting firm.
The claim of attorneys representing the company blames the problem simply on a lack of communication on the part of the contracting company. The company is now seeking damages for money originally spent, and additional funds for service charges, interest and various attorney fees.
Apparently, there is a penalty clause in the contract that allows for damages for each day of delay in the project as well. It is claimed that the contracting company was supposed to have performed its part of the street project as early as July 1st, so the project is already close to six months behind schedule.
In almost all business negotiations, time is of the essence. When projects are not completed on time, other businesses or entities can lose hundreds of thousands of dollars as a result of the delay. Businesses are forced to deal with issues that should have been resolved long ago, and these same businesses may have to retain other contractors that may or may not charge even more money.
With no communication forthcoming, a business may not even know if the project will ever be completed by the contractor in question. Business and commercial attorneys can in some circumstances open up the channels of communication, and this sometimes gets the project back on track. In other circumstances, the business simply takes the contractor to court that is claimed not to have kept their part of the bargain.
Source: The Day Connecticut, "Electrical supplier seeks $323,000 from contractor," by Greg Smith, Jan. 6, 2013
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