Contract breaches are a serious concern it is important to know how to handle and address. According to a lawsuit recently filed by the city of Miami Beach, a construction company installed a defective air conditioning and heating ventilation system in a home at a senior center which led to a leaky roof and other problems. The construction company had won a $3 million contract from the city to build a new home for a non-profit senior center. The city recently filed a lawsuit asserting breach of contract and negligence against the construction company and design company that worked on the project.
The project was managed by a nonprofit agency the city delegated management responsibilities to. In the spring of 2014, the contract was increased by $637,000. At the beginning of 2015, the contract was amended to include the demolition of an existing structure which was to be replaced with a 2-story building. The city asserts in its lawsuit that when the project was complete, inspections revealed that the work was negligent, deficient and defective.
The city further asserts in its lawsuit that the construction company failed to perform on the contract because the air conditioning and heating ventilation system did not properly cool the second floor of the building. According to the lawsuit, defective installation of the air conditioning system left the system unable to properly modulate air and control ventilation in the building. The construction company is also accused of installing malfunctioning fans. Because of the construction defects, the kitchen is subject to excessive temperatures and the air conditioning equipment corroded which resulted in multiple leaks that damaged both the interior and exterior of the building.
When a contract has been breached, or a project suffers from construction defects, it can be a costly and complex problem. The legal process, which it is helpful to be familiar with, provides a variety of remedies and resources that can guide the non-breaching party through their legal options or help inform a party accused of a contract breach of their defense options.
Source: The Real Deal, "Miami Beach sues Plaza Construction over faulty A/C system and leaks in new elderly assistance building," Francisco Alvarado, Aug. 7, 2017