Slide number 1
Based in part on FTI Consulting’s expert testimony quantifying the direct costs of the delays and fees paid for faulty work, the court awarded 95% of the more than $40 million sought in those claims.
Funds Recovered
Delivering 95% Claim Recovery in High-Stakes Rail Subcontractor Dispute
Funds Recovered
Delivering 95% Claim Recovery in High-Stakes Rail Subcontractor Dispute
Key Contacts
When subcontracted work doesn’t stand up to scrutiny, who’s held accountable?
A leading consulting and engineering firm was hired by a municipal board to install upgraded train signals that would enhance rail safety and efficiency between highly populated urban areas. The firm’s subcontractor experienced significant delays due to numerous Project Change Orders (“PCOs”) and was eventually terminated, resulting in the loss of the contract for the firm.
Once the firm took responsibility for the breach of contract and settled with the municipal board through mediation, FTI Consulting was engaged to assist with complex claims totaling more than $40 million against the subcontractor, not including liquidated damages, downstream project costs caused by the delays and attorney fees.
Our Impact
Our client successfully argued to the court that nearly all of the $40 million sought from the subcontractor in direct costs should be awarded as part of the total judgment, which exceeded $130 million and included penalties, fees and reimbursement for the mediation settlement.
Slide for Empty courtroom with a black judge's chair, wooden desks, green-shaded lamps, an open book, and a judge’s gavel resting on the desk.
The court ordered the subcontractor to pay more than $130 million in total damages, including direct costs linked to delays, contract penalties, prejudgment interest and legal fees.
Slide for Close-up of a red and white railway crossing barrier with a red warning light, a train passing in the background under a clear blue sky.
The court rejected all of the subcontractor’s counterclaims against the firm that could have significantly reduced the amount of damages.
By the Numbers
Cost of Delay Damages and Reimbursement Awarded
$40M
Damages Awarded for Direct Costs of Delays
95%
Sought Damages Awarded
$130M
Total Damages Awarded
In crisis and transformation,real-world experience delivers.
Our Role
Expert testimony backed by diligent cost review
Our testifying expert provided live testimony under COVID-era restrictions in a remote hearing before the court.
The engagement included calculating extended cost daily rates for time-related labor and expenses, reviewing and adjusting more than 30 PCOs and identifying contract balances.
Our team reviewed more than 4,000 pages of exhibits to produce the direct cost report that was presented to the court.
Real-world experience that delivers.
See why FTI Consulting is the leading global expert firm for organizations facing crisis and transformation.
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