UPDATE: A lawsuit filed by Grounded Electrical Construction, LLC against the Howard County Board of Education is intensifying as both parties await a crucial court ruling. The dispute centers on significant cost increases linked to the COVID-19 pandemic during the construction of Guilford Park High School, which opened in August 2023.
The total construction costs for Guilford Park reached a staggering $129 million. Grounded Electrical, contracted for $13.9 million to perform electrical work, claims it faced unexpected costs exceeding $5.5 million due to pandemic-related disruptions. The company argues that these unforeseen expenses breach their firm fixed-price contract signed in April 2020, which they believe lacked necessary flexibility to address such extraordinary circumstances.
Grounded Electrical formally requested a price adjustment, but the Howard County Board of Education rejected this plea, leading to the lawsuit filed in February 2024 for breach of contract. According to court documents, the company contends that the school board should have opted for a contract that could accommodate special conditions, such as those presented by a pandemic.
In an official statement, Howard County Public Schools refrained from commenting on the ongoing litigation but emphasized that employing firm fixed-price contracts is standard practice among school systems, including all construction projects within the district.
This lawsuit is particularly significant as it marks the only breach-of-contract case involving the Howard County Board of Education since the onset of the pandemic. However, it is not the first legal encounter for Grounded Electrical; the company previously filed a complaint against the Anne Arundel County Board of Education in 2022 after being denied a contract for work on Hillsmere Elementary School.
As anticipation builds, a judge was expected to deliver a ruling in early November, but proceedings have been delayed. Recent court records indicate a letter was sent to the judge on October 10 concerning a settlement conference and issues surrounding Grounded Electrical’s absence from court.
The outcome of this case could have significant implications for construction contracts in the region, particularly regarding how school systems manage unforeseen costs amid extraordinary circumstances.
Stay tuned for updates as this story develops. For news tips or more information, contact Brendan Nordstrom at [email protected] or call 443-900-1353.
