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State files $6.5M lawsuit over school's mold contamination

Thursday, June 19, 2008
BY DUNSTAN McNICHOL
Star-Ledger Staff


New Jersey State officials yesterday announced a lawsuit seeking more than $6.5 million in damages from the Gilbane Building Co., saying the firm failed to alert the state to mold contamination at a Neptune school building project.

Gilbane, in turn, refuted the state's claims and promised to file a countersuit.

Discovery of mold in the walls of a partially built Neptune Community Middle School last year forced demolition of portions of the school that had been built. The problems delayed the project by a year and added $13 million to the cost of the school.

In their lawsuit, filed in Superior Court in Monmouth County, the state Schools Development Authority contends Gilbane failed to protect the state's interests and never informed officials of the mold problem.

"Gilbane's responsibility was to be the eyes and ears of the SDA and the taxpayers of New Jersey on the project," said Scott Weiner, chief executive officer of the schools authority.

The lawsuit seeks damages in excess of $6.5 million from Gilbane for the portion of the cost of repairing the mold problem and recovery of a portion of the fees paid to Gilbane. The state has already collected $6.5 million from other builders and architects involved in the project.

Gilbane issued a statement in response to the filing of the suit.

"Gilbane vehemently denies the specious allegations in the School Development Authority's complaint, and will disclose the true source of the problems at Neptune Community School in its counter-suit, which will be filed shortly," said Wes Cotter, Gilbane's director of communications. "It will be clear Gilbane lived up to its responsibilities and repeatedly offered valuable advice to the SDA, which they chose to ignore at their detriment."

Gilbane has collected more than $50 million in fees from the state's school construction program, including $24 million for serving as a project manager. In February, after mediation talks over the Neptune project broke down, the authority fired Gilbane from all 23 jobs it was handling.

The firm continues to be eligible for other public work in New Jersey, and is handling the $4.6 million expansion of Rutgers University football stadium.

The lawsuit comes as state legislators are grappling with a plan to authorize at least $2.5 billion in new borrowing for the school construction program, which was beset by cost overruns and waste during its first years.

Since its launch, the program has spent all $8.6 billion allocated to it. Without new funds, Weiner said, the program will begin winding down next year.

Debate over new borrowing for the construction program is among several contentious issues threatening to tie up resolution of the state's proposed $32.9 billion state budget for the fiscal year that begins July 1.


 

© 2008  The Star Ledger
© 2008 NJ.com All Rights Reserved.

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