NEW YORK Outokumpu Stainless USA LLC has been hit with a $9-million lawsuit from a building contractor that worked on the stainless steel producers Calvert, Ala., facility.
Plymouth, Mich.-based National Steel City LLC (NSC) entered into a contract to erect some elements of a melt shop at Outokumpus Calvert site in 2011, according to the lawsuit filed in U.S. District Court in Alabama. The suit alleges that Outokumpus obligations under the contract "included supplying or providing NSC with all the structural steel, duct and roofing to be erected or installed by NSC" but that "late and incomplete deliveries occurred" during the construction process.
"The changed conditions in which NSC was forced to perform the work as a direct result of Outokumpus failure to provide timely and complete delivery of Outokumpu-furnished materials and to provide completed concrete foundations on time for NSC to commence its erection work as scheduled caused NSC to perform the work in a less-productive and more-costly manner," the lawsuit alleges.
NSC said it completed substantial work on the project on Nov. 9, 2012, seven months after the originally scheduled completion date of April 9, 2012, due to these delays and change directives issued by Outokumpu. "NSC incurred additional direct job-site costs as a result of this extended period of time on the project site, including but not limited to additional costs for its job-site staff and equipment," the suit alleges.
The lawsuit said NSC sent Outokumpu change requests for the increased costs it incurred during the projects construction, but they "remain outstanding and unpaid" and it is seeking compensation of nearly $9.05 million, plus attorney fees and interest.
Calvert-based Outokumpu Stainless USA declined to comment on the lawsuit.