Philadelphia Housing Authority sued by local construction company

A local construction company is suing the Philadelphia Housing Authority, claiming that the agency’s decisions caused major delays to their work on the Sharswood Blumberg redevelopment project.

DOMUS, which was awarded the $20.9 million contract for project in 2014, claims that PHA failed to pay invoices on time and changed the terms of their contract.

The multi-million dollar contract required that DOMUS renovate the remaining Blumberg high-rise tower for senior residents, build 57 rental units, and design new streets in the neighborhood. The construction company claims that decisions made by the PHA delayed much of their work by months.

An article in Law360 states:

Domus highlights multiple incidents in its complaint against the PHA, including alleged last-minute changes to the designs that required new permits. The PHA also went back on its decision to move a water line that ran through the construction site, delaying the project by several months, the complaint alleged.

DOMUS also claims in the lawsuit that after the implosion of the Norman Blumberg apartment towers on the site, they had to delay work “for several weeks” because the implosion didn’t take place on time. In addition, due to delayed payments, the construction company says it had to front $7 million of their own money to keep workers on the job.

DOMUS originally filed the lawsuit in March, a few months after it completed construction on the first phase of the project in November 2016.

PHA told Curbed Philly in an emailed statement that the alleged claims are unfounded and that it plans to file a counter claim:

The facts will show that Domus' claim is without merit. PHA intends to vigorously defend this case and will file a counter claim seeking damages of more than $1 million for numerous delays, poor workmanship and subpar performance by Domus. PHA is eager to present its case and the substantial evidence it has in court.

The trial is scheduled to take place next year.

Meanwhile, construction in the neighborhood continues, with PHA recently breaking ground on its $45 million headquarters.

• Developer sues Philly Housing Agency over contract row [Law360]