Subcontractor on St. Bernard Hospital project sued for allegedly not paying delay penalty

By Kyle Barnett | May 22, 2013

GRETNA – A contractor who won a construction bid from a local hospital service district is being suing a subcontractor for delaying the project by  more than six months and not paying associated penalties as stipulated by contract.

Citadel Builders LLC filed suit against Dirt Worx of Louisiana LLC in the 24th Judicial District Court on March 27.

Citadel Builders claims it subcontracted with Dirt Worx to provide demolition work, earthwork and a storm drainage system for the St. Bernard Parish Hospital project. The plaintiff alleges that it originally contracted the defendant for $575,000, which was later raised to $619,968.58 due to change orders. Citadel Builders asserts that under the contract, Dirt Worx agreed to pay $2,816 per day in penalties for project delays.

The defendant is accused of delaying the project by 197 days as well as not fully and promptly paying laborers, suppliers and subcontractors. Citadel Builders LLC alleges that despite the original contract of $619,968.58, it ended up paying a total of $1,371,886.12 for the work that was to be completed by Dirt Worx. The plaintiff claims that the defendant owes $751,917.54 for the disparity in the original contract and the amount the plaintiff eventually paid as well as $554,752 for delays in the project.

The defendant is accused of breach of contract.

Damages in the amount of $1,306,669.54 plus attorney’s fees are sought by the plaintiff.

Citadel Builders is represented by Ashley B. Robinson of New Orleans-based Shields Mott Lund LLP.

The case has been assigned to Division M Judge Henry G. Sullivan Jr.

Case no. 725-313.

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