On behalf of Koch & Schmidt posted in Contract Disputes on Tuesday, November 22, 2016.
A city outside Louisiana has been trying to obtain an amicable agreement regarding a business situation. A $40 million project was apparently at the center of the recent contract dispute. Both sides recently presented their arguments to a contract compliance hearing officer.
A company that entered a bid on the project was told it had fallen short because it failed to meet the 15 percent representation requirements for hiring minority employees to do the work. The work in question includes building a new baggage system, equipped with explosive detectors to screen bags on a conveyor system at one of the nation’s largest, busiest airports. The company appealed the city’s decision to hire another company instead.
Spokespersons for the company whose bid was rejected said they made every effort to retain minority workers for the project, but believe the requirements were impossible to meet because the work contemplated is extremely specialized. The hearing officer, however, found the company had failed miserably to show a good faith effort in meeting the requirements. The hearing officer further ruled the city to be just in its decision to award the contract to another bidder.
With regard to major construction projects of this sort, any type of contract dispute can cause substantial delays, poor production and threats to bottom line interests. These are few of many reasons most business officials in Louisiana want to resolve such issues as swiftly and economically feasibly as possible. To do this, many of them hire business and commercial law attorneys to help them review their situations and determine how best to proceed to achieve quick and agreeable solutions to their business-related problems.
Source: airport.blog.ajc.com, “City of Atlanta prevails in baggage system contract dispute“, Kelly Yamanouchi, Nov. 17, 2016