NYC Resolves Major Contract Dispute with Wade Electric, Inc. in Second-Largest Delay Claim Payout
Thanks to the leadership and advocacy of C|Y Principal Robert J. MacPherson, Wade Electric secured a major legal victory against the City of New York. In November of 2006, Wade Electric was awarded a contract by the City of New York to upgrade the City’s emergency electrical generator plant at 125 Worth Street, New York, NY. The lump sum contract amount was $8,752,752.00. Due to circumstances beyond Wade’s control, Wade could not begin its work until April 2007 and was unable to complete the work until September 2011, two years later than anticipated. The City blamed the delays on Wade, refused to pay Wade its undisputed contract balance of $526,000, claiming the City was owed liquidated delay damages in excess of that, and refused to pay Wade any of its costs arising out of the delay.
Wade commenced litigation against the City, which, due to the COVID-19 pandemic and other factors, was itself delayed. The matter was settled when the City agreed to pay Wade its $526,000.00 contract balance, plus $950,000.00 as compensation for Wade’s costs arising from the construction delays. The delay claim settlement was the second-largest paid by the City on a contract claim for the fiscal year 2024.
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