Skanska USA terminates Atlantic Yards construction management contract
Skanska USA Building has terminated its Construction Management and Fabrication Services Agreement for the Atlantic Yards B2 Residential Project with Forest City Ratner affiliate, the Atlantic Yards B2 Owner.
Construction Global reported last month that Skanska had halted work at the site as well as its prefabrication hub on the contract worth $117m.
Skanska said it notified the B2 Owner on August 8 of its intent to terminate if the B2 Owner did not address its many material breaches under the agreement, and that the August notice was issued after a series of unsuccessful efforts by Skanska throughout 2014 to resolve the significant commercial and design issues facing the B2 project.
The company said that consistent with its behaviour, the B2 Owner again took no action to remedy its breaches, leaving Skanska no choice but to terminate the agreement and pursue its rights to be paid for the millions of dollars in extra costs it has incurred to keep the project going and its modular factory workers working.
Commenting on the situation, Skanska USA Building Co-Chief Operating Officer Richard Kennedy said: “Today is an incredibly disappointing day. Our company has a long history of working with our clients through all kinds of challenges so, at the end of the day, we deliver the best product possible to our clients and the communities in which we live and work. In New York alone, we have worked on some of the city’s most iconic structures and with each of those projects, we have finished the job. While the B2 project certainly has its issues, we were hopeful that our client and partner would address them so we could move forward with building much-needed affordable housing in Brooklyn.
“But we could not continue to incur millions of dollars in extra costs with little hope that Forest City would take responsibility for fixing the significant commercial and design issues on the project. We pride ourselves on being an innovative company and we will continue to build using prefab and modular techniques to move the construction industry forward. This issue will not deter us from continuing on that journey of innovation.”
Comment from the B2 owner was not available at the time of writing.
Winvic tops out first hotel project in Milton Keynes
A roof covering programme is now underway which will be followed by floor and ceiling curtain walling, and extensive glazing on the 13th floor, which will contain a sky bar, restaurant and public exhibition space.
Work on envelope and cladding will continue with the 30m high, LED-lit satin finish stainless steel circle on the eastern façade completing the external design. The ‘sun’ design will be visible up the city’s Midsomer Boulevard, which was created to align with the sun on the longest day of the year.
Winvic is currently fitting-out the 261 bedrooms, which has included the sailing and positioning of off-site fabricated bathroom pods. Fit-out of other facilities within the hotel will also continue, such as the 12,000 sq ft flexible conference floor that comprises adaptable meeting spaces and an external terrace that has been designed to be high load bearing. The project is expected to be handed over in July 2022.
Mark Jones, Winvic’s Head of Multi-room, said: “We started on site just two weeks after the first 2020 lockdown was announced and despite the unprecedented challenges, our team have hit milestone after milestone on, or ahead, of schedule. I’d like to say a huge thank you to them. Reaching the highest point of any multi-room project is always worth celebrating, but this is a bit more special as it’s Winvic’s first hotel," he said.
Winvic recently lifted eight railway bridge beams into place over the A5, 2km north of M1 J18. It is one of three bridges that Winvic is constructing for Prologis at DIRFT III in Northamptonshire, as part of a £29 million contract to deliver a new Intermodal Rail Freight Terminal.