Telex Facility

Raleigh, North Carolina

Owner: Beckenstein Enterprises

Client Name: Encorp/A Division of AMCA International Construction Corporation

Engagement Scope

The Sutor Group was engaged by Encorp to prepare a request for contract adjustment relating to contract changes and contract extension costs incurred on the project. The impact totaled $391,000.

Project description

The project involved the construction of a 360,000 square foot warehouse/office complex. The project was a contractor design build contract to meet the specifications of the tenant - Memorex-Telex. Encorp subcontracted the majority of the work on the project.

Entitlement issues

The contractor received direction from the owner to proceed with changed work on numerous items, however, no change orders were issued by the owner to compensate the contractor for the changed work. The changed conditions caused the project to be delayed, resulting in additional overhead costs.

Type of impacts

The contractor incurred substantial costs on changes directed by the owner on the project which had not been paid by the owner. These changes caused the project performance period to be extended, resulting in increased field and home office overhead costs. The owner was also late in paying pay estimates and had not paid the final contract balance, therefore, the contractor has made a claim for lost interest.