City settles $250k claim with construction company

  • Wednesday, February 13, 2013

Goose Creek City Council has settled a lawsuit with a construction company for $250,000.
Council held a 40-minute executive session during a Feb. 5 workshop in the council chamber. The session focused on a settlement with Anson Construction Company Inc., which attempted to sue the city for more than $600,000 due to delays the company claimed to incur during the Central Avenue streetscape project.
After the executive session Councilmember Franklin Moore made a motion to make a $250,000 settlement with the construction company. Councilmember John McCants gave a second.
The motion carried. Councilmember Jerry Tekac voted against the motion. Councilmember Marguerite Brown was not present.
Below is a timeline summary of the case provided by the city:
• Goose Creek gave Anson Construction notice to proceed on Sept. 10, 2009 to start work on or before Oct. 12, 2009, and to be completed within 180 calendar days (April 10, 2010).• Due to unforeseen problems related to the underground utility (AT&T) and underground drainage structures (SCDOT) along Central Avenue, the project was not completed until Oct. 26, 2011.• In a letter dated, Oct. 31, 2011, Anson Construction Company Inc. made a claim against the City of Goose Creek in the amount of $671,811 for delays attributed to the Central Avenue streetscape project. In the claim, Anson contended that its work was delayed and disrupted because of defects in the plans and specifications, interferences with the work, delays by the city in obtaining permits and other specific causes listed in the claim submittal.In a letter dated March 7, 2012, Anson revised the claim amount to $696,827 based on revisions to the original claim.To address the claim, the city’s attorney, Andy Lacour, retained the services of a scheduling expert (Bryon Willoughby) to assist in analyzing Anson’s claim.• Anson filed suit on the claim on July 12, 2012. The city filed an answer to set off a counterclaim against Anson on July 25, 2012. In turn, Anson filed its reply to the city’s counterclaim, and by agreement of counsel, all further pleadings were suspended to continue attempts to find a mutually acceptable resolution of the claim.The scheduling expert utilized two methodologies to examine Anson’s claim: first he analyzed the entire claim and eliminated portions for which it appeared a change order was issued and would result in a maximum claim amount of $282,618. Second he utilized an assumed loss of productivity of 35 percent.By applying a 35 percent loss of productivity to the labor costs and the equipment costs in the original estimate, the total compensable damages incurred by Anson would be $165,151.
On Nov. 29, 2012, a mediation was held at the offices of Clawson & Staubes between the city and Anson Construction. Although the claim was not resolved, the city made a final offer of $250,000 to settle the claim pending approval of city council.On Jan. 16, 2013, Anson’s attorney accepted the city’s tentative offer of $250,000 to settle the claim.

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