Contractor Sues for $1.6 Million in Overruns on $14 Million Fire Station

A contractor is suing a Virginia city for over $1.6 million in cost overruns associated with the construction of a $14 million fire station.

Costello Construction of Maryland is suing the City of Charlottesville claiming that change orders and the city’s delays in answering 387 requests for information led to the additional costs in building the 38,000 square foot Fontaine Avenue station.

The 16 page complaint was filed last year in US District Court for the Western District of Virginia. Among the allegations are that “the City took 3,279 days to respond to all 387 RFis,” contributing greatly to the additional costs.

City officials claim Costello’s claims are exaggerated pointing out that 3,279 days is 8.98 years, while the parties entered into the construction agreement on October 17, 2011.

Here is a copy of the complaint: Costello Construction

More on the story.

About Curt Varone

Curt Varone has over 40 years of fire service experience and 30 as a practicing attorney licensed in both Rhode Island and Maine. His background includes 29 years as a career firefighter in Providence (retiring as a Deputy Assistant Chief), as well as volunteer and paid on call experience. He is the author of two books: Legal Considerations for Fire and Emergency Services, (2006, 2nd ed. 2011, 3rd ed. 2014) and Fire Officer's Legal Handbook (2007), and is a contributing editor for Firehouse Magazine writing the Fire Law column.
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