General Contractor Allegedly Caused Unreasonable Delays and Siphoned Money

ByKristin Casler

|

Updated onOctober 10, 2017

General Contractor Allegedly Caused Unreasonable Delays and Siphoned Money

An Oregon based plaintiff entered into an agreement with defendant general contractor under which defendant agreed to furnish all labor, material, shipping and project management necessary to effectuate the construction of plaintiff’s villa. Plaintiff alleges the defendant failed to complete construction within the allotted time, exceeded costs, refused to properly manage the project, resulting in delays, and failed to timely pay contractors.

Further, the plaintiff alleges that the president of the general contractor acted in his own personal interest, converting $1.5 million of plaintiff’s funds for his own personal use. He also issued fraudulent statements regarding the progress of the project.

Claims include breach of contract, fraud and conversion.

Question(s) For Expert Witness

1. What caused the cost overruns and delays?

2. Are these typical problems with construction of this type?

Expert Witness Response

inline imageThe unknown subsurface conditions of the villa site appear to be the single most significant cause for building cost escalation and schedule delay affecting the building performance of defendant. The cost impact of the subsoil conditions is illustrated by the total costs shown as $255,070 for excavation incurred, which is approximately three times the initial budget of $86,080. The contractor that followed defendant was plagued by similar cost escalation influences.

inline imageCompounding the cost and schedule impacts of extreme subsoil conditions prevalent under the site is the fact that the site is difficult to access and comprised of significant inclined slope conditions. Such conditions pose uniquely challenging logistics for the building contractor and have a demonstrable cost impact. Restricted access to the site caused increased costs to bring workers, construction equipment, and building materials to the site; the inability to fabricate building material storage adjacent to the building site caused increased costs in the storage, availability and delivery of building materials to the building site; and such extreme site conditions increase the costs associated with the provision of sanitary facilities during construction, the disposal of construction wastes, and the delivery of construction water and electric power.

inline imageThese problems are typical for construction in this region. Additional, lengthy delays due to weather and the unavailability of skilled workers can wreak havoc on a project.

inline imageThe expert has more than 40 years of experience in the engineering-construction industry. He has been directly involved with the design and construction of large infrastructure, industrial and institutional projects around the world.

About the author

Kristin Casler

Kristin Casler

Kristin Casler is a seasoned legal writer and journalist with an extensive background in litigation news coverage. For 17 years, she served as the editor for LexisNexis Mealey’s litigation news monitor, a role that positioned her at the forefront of reporting on pivotal legal developments. Her expertise includes covering cases related to the Supreme Court's expert admissibility ruling in Daubert v. Merrell Dow Pharmaceuticals Inc., a critical area in both civil and criminal litigation concerning the challenges of 'junk science' testimony.

Kristin's work primarily involves reporting on a diverse range of legal subjects, with particular emphasis on cases in asbestos litigation, insurance, personal injury, antitrust, mortgage lending, and testimony issues in conviction cases. Her contributions as a journalist have been instrumental in providing in-depth, informed analysis on the evolving landscape of these complex legal areas. Her ability to dissect and communicate intricate legal proceedings and rulings makes her a valuable resource in the legal journalism field.

Find an expert witness near you

What State is your case in?

What party are you representing?