As judge denies Forest City's request to reopen modular factory, contract with Skanska to build B2 terminated; judge orders meeting to resolve control of factory
Skanska Building had terminated its construction management (CM) agreement with Forest City to build B2, and terminated the B2 purchase order to buy modules from the jointly-owned and -operated factory.
“Today Skanska terminated their contracts as construction and factory manager for B2, making clear again that they have no intention of moving this project forward. We believe in modular and have worked tirelessly to get B2 back on track since Skanska blind-sided us by ceasing construction and putting 157 workers on the street last month. Skanska has responded with inaction and inertia, trying to leverage us financially by stonewalling B2's progress. These are deplorable and disappointing tactics that show remarkable indifference to the wellbeing of these workers and the project. We will continue to rigorously pursue our options through the courts to get B2 built."Skanska USA Building Co-Chief Operating Officer Richard Kennedy pointed out that the 8/8/14 notice to terminate was issued after Skanska had not been able to resolve "significant commercial and design issues," including requests for additional payment, but B2 Owner took no action in response.
“Today is an incredibly disappointing day. Our company has a long history of working with our clients through all kinds of challenges so, at the end of the day, we deliver the best product possible to our clients and the communities in which we live and work. In New York alone, we have worked on some of the city’s most iconic structures and with each of those projects, we have finished the job. While the B2 project certainly has its issues, we were hopeful that our client and partner would address them so we could move forward with building much-needed affordable housing in Brooklyn. But we could not continue to incur millions of dollars in extra costs with little hope that Forest City would take responsibility for fixing the significant commercial and design issues on the project. We pride ourselves on being an innovative company and we will continue to build using prefab and modular techniques to move the construction industry forward. This issue will not deter us from continuing on that journey of innovation.”Argument in court
What happens, asked Scarpulla, if she called a vote.
No other reporters were there, but, after press releases were issued, coverage emerged, including:
--Crain's New York Business, Skanska cancels Atlantic Yards contract
--Daily News, Construction company building world’s tallest modular tower in Brooklyn terminates contract amid dispute with developer Bruce Ratner
--Curbed, Skanska Terminates Contract for Atlantic Yards Tower B2
--Bloomberg BusinessWeek, Skanska Quits Brooklyn Prefabricated Apartment Project