In March of 2006, Lutheran Care at Moorestown entered into an agreement with Hessert Construction New Jersey, LLC (“the contractor”) for the construction of a new 46-unit assisted living facility on the campus of Lutheran Care at Moorestown. The design was prepared by The Kwait Organization. Work on the project commenced in May of 2006. The contractor was to achieve substantial completion by January 11, 2008. Delays early in the job extended the substantial completion date to October 3, 2008.

The contractor was, however, unable to achieve substantial completion by October 3, 2008, and by that date still had significant work remaining. Because of this delay, and for various other reasons, Lutheran Care terminated its agreement with the contractor in January 2009 prior to the work being completed. Thereafter, Lutheran Care assumed the contractor’s subcontracts and hired a project manager to assist Lutheran Care in completing work. Ultimately the project achieved substantial completion on October 23, 2009, 385 calendar days beyond the revised substantial completion date.

GREYHAWK was initially engaged by Lutheran Care to assist in their contemplation of terminating the contractor. Upon the contractor’s termination, GREYHAWK assisted Lutheran Care in tracking costs associated with rework, project completion and other additional work resulting either from the contractor’s performance or as desired by Lutheran Care. During the subsequent dispute related to the termination, GREYHAWK performed a detailed construction claims analysis which included development of a detailed as-built schedule, identification of the “as-built critical path” to project completion and identification, quantification and assessment of responsibility for critical delays. GREYHAWK also performed a comprehensive damages analysis identifying and quantifying the additional costs Lutheran Care incurred as a result of the contractor’s performance and termination.

This claim was ultimately resolved with an out-of-court settlement in which Lutheran Care recovered an amount sufficient to cover the final construction costs of the project inclusive of rework and other additional completion-related costs.