MARTINSBURG — Two defendants in a lawsuit with Sargent Electric Company want the complaint dismissed and filed a counterclaim.
Bechtel Infrastructure and Power and Reed & Reed deny all allegations against them and allege that Sargent breached the contract between the parties by not paying liquidated damages.
"Bechtel/Reed and Sargent entered into a contract dated January 29, 2021, for construction of certain electrical work on the Black Rock Wind Power Project owned by Black Rock Wind Force LLL," the answer states.
Under the subcontract, Sargent was independently liable for paying liquidated damages for not completing certain electrical work within set milestone completion dates, including a Guaranteed Electrical Collection System Completion Date for each of the five electrical feeders on the project, according to the answer.
Untimely completion of each and every project electrical collector system was subject to an assessment of liquidated damages upon Sargent and Sargent did not complete any of the electrical collector systems by its date and was solely responsible for the delays to its completion of the electrical collection system.
In its complaint, initially filed in U.S. District Court for the Northern District of West Virginia on Jan. 3, Sargent claims it performed all services and provided labor to Bechtel and Reed as described in the Black Rock Subcontract.
"Bechtel-Reed agreed to pay Sargent for the services rendered and labor provided in connection with the construction of the Black Rock Project," the complaint states. "This is an action to collect sums due and owing for the unpaid balances of the Black Rock Subcontract and for the additional costs incurred by Sargent due to extended overhead costs incurred by Sargent because of Bechtel-Reed's late performance of their Work."
The project was beset with impacts and disruptions from the start of construction, none of which were the fault of Sargent, the complaint states.
Sargent claims the scope of work as provided for in the Black Rock Subcontract was scheduled to commence on June 16, 2021, and to be completed by August 30, 2021. It claims the defendants were unable to erect the towers in time to support Sargent's critical tower wiring activity and Sargent provided numerous communications to Bechtel-Reed regarding these delays and disruptions, including formal written delay notices to Bechtel-Reed on July 1, 2021, July 30, 2021, and September 24, 2021.
"Bechtel-Reed recognized and acknowledged its delays and agreed on August 4, 2021, to issue Change Order No. 11 to Sargent for Tower Wiring Acceleration in the amount of $390,000.00," the complaint states. "However, Bechtel-Reed was unable to accelerate its erection of the wind towers to support the tower wiring acceleration provided for in Change Order No. 11, and subsequently suspended Sargent from continuing to accelerate its work."
Instead of Sargent's work on the tower wiring being accelerated, the project was delayed for an additional 24 weeks, during which Sargent continued to incur general conditions costs.
"Sargent submitted COR 31, R3 for extended general conditions in the total amount of $361,601.65," the complaint states. "Sargent was not responsible for any of the delays to the Collector Systems on the Project."
Sargent claims it could not complete its Collector System scope until the Towers were erected and deemed mechanically safe for entry and once the towers were erected and deemed mechanically safe for entry, Sargent promptly completed the Collection System Wiring for each of the towers.
"Since Sargent was not responsible for any of the delays to Bechtelor for the delay of the ultimate substantial completion of the overall Project, Sargent is entitled to the full extended general conditions amount of $361,601.65," the complaint states.
Sargent is seeking compensatory damages for a total of $1,143,969.65 with pre- and post-judgment interest. It is represented by Gene W. Bailey II of Hendrickson & Long in Charleston.
The case is assigned to District Judge Gina Groh.
U.S. District Court for the Southern District of West Virginia case number: 3:23-cv-00001
