Chapter 12: Construction Solutions

The construction industry has faced mixed reactions to the pandemic: some locales are allowing construction projects to continue as an “essential service” and others are shutting down construction altogether.

As we emerge from quarantine in the coming months, the activity in the construction industry will likely increase rapidly and significantly. Owners and contractors will need assistance with navigating force majeure contract clauses, calculating schedule delays, loss of productivity, and damages, and responding to disputes stemming from work stoppages.

The Construction Solutions experts of FTI Consulting offer experienced industry perspectives and collaborative solutions that achieve positive outcomes for our clients. In this section, of our 2020 Insights: Top Disputes & Investigations, we highlight our work helping clients resolve disputes on major Construction Solutions projects.

Narrowing Claim Amounts with Forensic Accounting

Counsel engaged FTI Consulting on behalf of a prime contractor on a building project in Florida related to a transportation terminal and office building. The steel fabrication and erection subcontractor on the project made a claim against FTI Consulting’s client for various additional costs it allegedly incurred to address impacts due to design and project management issues by our client (the contractor) and the owner and designer.

FTI Consulting’s team provided an assessment of the damages and offered two expert reports that addressed the subcontractor’s individual claims. This review revealed significant deficiencies with all of the claims, which forced the subcontractor to revise its claims and approach to the dispute on several different occasions.