Skanska USA and its development partner Forest City Ratner Companies are suing each other over allegations of technical and management shortcomings on a groundbreaking New York modular residential tower project.
Construction started in 2012 on the 348,000 square foot residential tower known as B2. At 322 feet, it was claimed to be the world’s tallest modular apartment building.
But only 10 of the 32 storeys were completed by 27 August when construction manager Skanska called a halt to work at the fabrication plant.
Skanska and FCRC set up their joint venture called FC + Skanska Modular to build B2’s 930 modular components in a 150,000 sq ft factory in the Brooklyn Navy Yard, a mile and a half from the project site.
Work was scheduled to be finished in July this year but the project suffered accumulative delays and cost overruns, apparently totalling $50m. FCRC now estimates completion in September 2015.
Only 10 of the 32 storeys have been completed on the B2 project
At the heart of the dispute are alleged technical issues over the modular design and construction that were not addressed by FCRC, according to a lawsuit filed by Skanska against its partner on 2 September. Skanska said it issued the “stop-work notice” because the project also needed more investment than originally agreed.
But FCRC, filed its own lawsuit – a mere 16 minutes after Skanska’s was filed – alleging that mismanagement by Skanska had resulted in a failure to give proper notice of problems to FCRC.
FCRC alleges that Skanska employed three different project managers during the fit-out process that was supposed to take five months but was delayed by seven months.
The tower is Skanska’s first modular designed building in the US and is a fixed-price contract worth $117m.
SHoP Architects and engineer Arup worked with Skanska and FCRC to develop new modular construction techniques and systems.
B2, designed to LEED Silver certification specification, is intended to form part of a mixed-use development owned by FCRC that includes the Barclays Center.
The tower will have 363 apartments and is part of a larger $4.9bn development in an area formerly known as Atlantic Yards.
Skanska and its partner estimated modular construction would take 10 months less than if traditional construction methods were employed. Modular construction also was supposed to result in 70 to 90% less waste.
Since filing their respective lawsuits in the New York State Supreme Court, both sides have issued statements saying the goal is to get the fabrication factory’s 150 employees back to work constructing modules so work can continue on site.
