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New football facility at center of business dispute

On Behalf of | Feb 7, 2014 | Business Formation & Planning

When millions of dollars are at stake in the building of a new facility, the parties involved may enter into a contract. This contract states expectations up front for any business involved in the planning, development and building of the new facility. If one party doesn’t hold up their end of the agreement, they may be taken to court to ensure that both parties are satisfied with the results. At this point, a judge or jury in Florida or any other state may decide which end of the contract should be upheld.

Four subcontractors that worked on a football training facility for the University of Iowa have filed claims against the manager of the project that they did not receive pay for their work. The building was part of a $55 million project that looked to upgrade the team’s facilities.

The project manager placed a stop-work order on some of the work when it did not meet the specifications of the project, forcing the subcontractor to speed up other installations at a later date after work was resumed. The manager claims they should not have to pay the subcontractor because the terms of the contract were not met. The subcontractors have requested that a federal lawsuit be put on hold as the state claims are sorted out.

In business disputes, it may be important to sort through all the claims of both parties in order to determine what really happened during the building process. Any party involved in a business dispute may benefit from consulting an attorney with an understanding of business litigation laws.

Source: Kentucky.com, “Contractors seek payment for Iowa football project,” Ryan J. Foley, Jan. 1, 2014