Industrial Contractors Inc. has filed a breach-of-contract
lawsuit against Gerdau Special Steel North America, claiming it
is owed more than $4.8 million in unpaid invoices, extra work
and expenses incurred for work performed at the
steelmakers Monroe, Mich., plant.
Birmingham, Ala.-based Irondale
was contracted in October 2011 to perform construction services
related to installation of a caster at the mill, according to
documents filed Feb. 27 in U.S. District Court in Alabama.
The original contract stipulated
payment of $6.53 million for construction services. Irondale
and Jackson, Mich.-based Gerdau Special Steel later agreed to a
change order for $365,000 in additional piping work, adjusting
the contract price to $6.895 million. But the steelmaker has
paid just shy of $5.97 million on the adjusted contract price,
a deficiency of $926,735, according to the filing.
Irondale subsequently submitted
invoices and requests for payment for construction services
that it undertook pursuant to the contract, none of which
Gerdau Special Steel paid, the company alleged. These include
$984,789 for time extensions, $891,801 for extra work
authorizations, nearly $1.1 million for other incurred expenses
and $934,630 for impacts to the contract scope.
The contract requires Gerdau
Special Steel, a subsidiary of Gerdau SA, to pay Irondale these
sums, totaling more than $4.8 million, according to the
complaint. Irondale is seeking compensatory damages and court
Because the contract requires
the parties to arbitrate claims, Irondale also filed a motion
to stay proceedings and compel arbitration.
"We are aware of the situation
and do not comment on pending litigation," Jack Finlayson,
president of Gerdau Special Steel North America, said in a
statement March 1.