Poor Construction Management Costs Developers $900,000

    Construction ExpertThis case involves four partners in Seattle who purchased a commercial property and entered into a joint operating agreement. The joint party purchased the property in question with the intention of building retail space. After the majority of the project was completed, the only remaining item to be completed was the sewer. The plaintiff partners obtained a quote from an approved construction company, but the defendant partner refused to obtain a construction loan as required in the operating agreement. The defendant partners then hired an independent company to complete the sewer construction without consulting any of the other partners. The project was never completed and as a result, the property was unable to host tenants. The defendant later obtained finances to place required funds in escrow and the parties agreed to hire a contractor. Ultimately, the project cost the partners roughly $900,000 in additional funds to complete. An expert in construction was sought to opine on the correct construction processes for sewerage systems and who is generally responsible for this.

    Question(s) For Expert Witness

    • 1. Please describe your experience with construction projects.
    • 2. Are you familiar with processes involving the approval of sewer connectivity or similar tasks?

    Expert Witness Response E-052652

    I am very familiar with the processes for construction projects involving the approval of sewer connectivity by the environmental protection agency. I am a board-certified construction manager and have worked on several construction projects in a major metropolitan area. There are a lot of moving parts in this case. Given the project evolution and timeline, I am capable of discussing the budget of similar construction projects, but I will need to know a little more about the type of building to give you a more accurate estimate. I can speak to construction loans and how they are obtained. Understanding who is responsible may be a bigger, more difficult challenge based on the potential confusion associated with the operating agreement.

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