New York is in the midst of allegations of a multi-million dollar contract breach. The issue involves the famed observation wheel. The wheel was designed to be the highlight of the redevelopment plan for the North Shore. It is touted to be a "must see iconic structure that will change the New York City skyline forever."
Unfortunately, these plans are temporarily on hold.
What's the hold up? Allegations for the cause of the hold-up abound. A recent report by Curbed New York notes that city inspectors blame bad construction. More specifically, the project was cited for bad welds and a defective pad. Considering the wheel contains legs that weigh over 500 tons each, a bad weld is a serious allegation.
These allegations are countered with claims by both the design team and the developer. The developer says the designer vastly exceeded the agreed upon bid. In return, the designer states the developer is to blame for the defective pad.
What will happen? Legal counsel for the developer is pushing to keep the case as quiet as possible. If the issues become public, he fears it will be the death of the project.
At this time, the exact completion date for the project is unknown as these legal issues work through the court system towards resolution. However, leaders with the project have announced a revised opening date of April, 2018.
What can other construction crews learn from this debacle? Although the observation wheel is a massive project, even small crews can learn from these legal issues. Frustrations with changes in the price when compared to the original bid and allegations of defects are not uncommon. However, construction companies should take the accusations seriously as they can hurt the reputation of the business and result in serious monetary penalties.
These allegations can be fought. Contact an experienced construction litigation attorney to discuss your options and better ensure your business interests are protected.