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Contract disputes can stop road construction and other work

On Behalf of | Mar 13, 2016 | Contract Disputes |

Contract disputes between a construction company and its lender involving roadwork in a southern state have made recent headlines. The disputes have led to a complete halt to construction on a roadway in that state’s western region. According to a recent report, the contract disputes arose over the need for additional funding. Ohio business owners may be interested in the details of the ongoing disputes.

The company that won the bid to build the roadway has claimed that its lender has prevented it from continuing construction. According to the report, the construction company was required to stop work due to financial issues. Apparently, it attempted to circumvent these issues through appeals to the lender that provides up-front capital for projects. However, the lender, instead of providing money, is now involved in a dispute with the construction company.

A representative from the construction company reported that it owes subcontractors, attorneys and vendors money that it does not have and that its lender will not provide. As a result of its financial shortcomings, the company walked off of four different construction projects. A lender representative, in recognition of the complications caused by the halt to the roadwork, has stated that both companies could possibly benefit if the funds needed were loaned and the work was allowed to be completed. However, he said his company refuses to be pressured.

This case is currently in the hands of a federal court, and its outcome may affect similar cases involving contract disputes both in Ohio and elsewhere. Companies that are involved in disputes related to breaches of contract may face not only financial hardships but also complex legal challenges. In order to avoid the consequences of a costly courtroom loss, most companies seek the assistance of experienced business attorneys to represent their interests in court.

Source:, “Construction company blames NCDOT for R-5000 meltdown,” Tanner Hall, March 2, 2016


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