Few industries are as fluid as construction when it comes to teaming up with other companies. But what happens when companies sign a teaming agreement and help land a big project, only to get kicked off the team? Can they sue?
A federal court’s new ruling finds that they can sue due to the legally enforceable teaming agreement’s promise to negotiate. The U.S. District Court for the Northern District of Georgia in early June ruled against a motion to dismiss by contractor Amec Foster Wheeler. It was battling a claim brought by a subcontracting team of Delmar, Del.-based Crystal Steel Fabricators and Culpeper, Va.-based Memco Inc. after the companies failed to win work helping to build a part of the Aegis Ashore Missile Defense System on the Redzikowo Base in Poland. The project cost was $183 million.