Britton Law, P.A.
Free Consultation For Injury Cases
Due to precautions related to COVID-19, remote consultations via teleconferencing, Facetime or Skype are available. Please contact our office to discuss if this option is appropriate for your situation. Let’s all stay healthy and safe.

Breach of contract claimed for nearly $4 million still due

For one reason or another, construction contracts in North Carolina and elsewhere often fail to be completed as written. During the course of an extended contract involving a substantial construction project, various disagreements can arise regarding the contract's intent. Breach of contract is thus a relatively common allegation that arises when two parties to a construction contract do not agree on some aspect of performance under the agreement.

A recent example involves a nearly $4 million argument between a construction company and a regional energy provider. The contractor brought a lawsuit in a state court claiming the energy company owed the final balance due on their construction contract. The agreement allegedly required the contractor to install chilled water, steam and hot water systems according to the energy company's specifications. The company agreed to pay the contractor the sum of $8,870,970 for the total job.

However, it's alleged in the lawsuit that the energy company raised various unjustified disputes and failed to make final payment of the remaining balance of $3,921,637.99. The contractor claims that it finished all of the work as of July. There were alleged disputes onsite between the contractor and the thermal engineers for the energy company. The contractor alleges that the engineers provided flawed design specifications that turned out to be incorrect.

It's typical in North Carolina for construction contracts to provide for partial payments as the work progresses. Generally, at the end of each specified phase of work, payment is made after the work is inspected and approved. Sometimes, that party will stall in making the final payment due. That might be because of a legitimate dispute, or it could simply be due to the desire to control the cash flow until the last possible moment. In the latter event, the party failing to make payment may be sued for breach of contract and compelled to pay the balance, along with interest, costs, and legal fees as may be provided in the written agreement or by law.

Source: The Louisiana Record, "Boh Bros. files breach of contract claim against Entergy for nearly $4 million", Max Schramel, Nov. 24, 2014

No Comments

Leave a comment
Comment Information

Send Us An Email. We’ll Listen.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Britton Law, P.A.
2850 Village Drive, Suite 206
Fayetteville, NC 28304

Toll Free: 888-811-9738
Phone: 910-401-3356
Fayetteville Law Office Map

Britton Law, P.A. Office

Call Our Law Firm:

910-401-3356 ~or~ 888-811-9738
Breach of contract claimed for nearly $4 million still due | Britton Law, P.A.