A New Jersey contractor claims that the Bedford Village Fire District created incentives that enabled a construction manager and architectural firm to receive extra compensation for building a new firehouse.
Niram Inc. sued the fire district, Arris Contracting Corp. and PC Studio Architects for nearly $1.5 million, in a complaint filed Sept. 22 in Westchester Supreme Court.
Arris and PC Studio received direct pecuniary gains, the complaint states, “by being compensated for providing additional services needed to correct the issues caused (by their) own intentional actions.”
Fire district officials and Arris did not reply to emails asking for their side of the story. PC Studio architect Paul R. Checco did not immediately respond to a telephone message asking for comment.
Niram, of Cedar Knolls, New Jersey, was awarded a $5.9 million base contract in 2021 for general construction on the $14.8 million firehouse.
Arris, of Poughkeepsie, was awarded a $757,835 contract to coordinate Niram and five other contractors handling site work, mechanical systems, plumbing, electric systems and fire protection.
PC Studio, of Brewster, was hired to perform architectural services during the procurement and construction phases for $196,470.
Arris and PC Studio could also receive extra compensation for services provided after the project was supposed to be completed.
Niram claims that Arris and PC created unnecessary delays.
For instance, Niram hired a subcontractor to do insulation work. Some of the foam shrank, according to the complaint, the subcontractor contacted the manufacturer and the manufacturer provided instructions for fixing the problem.
The fire district, acting through Arris and with PC Studio’s ratification, nullified payments to the subcontractor, the complaint states.
The subcontractor abandoned the job, and the fire district brought in a new contractor, allegedly causing delays for three weeks that in turn delayed other work.
The subcontractor “was ready, able and willing to expeditiously complete remediation of its work,” the complaint states, “and had the district and its agents not interfered … the project schedule would not have been impacted.”
The insulation incident, Niram claims, is an example of a “lengthy and complex history of … bad faith conduct by the district, Arris and PC Studio which is too voluminous to detail fully in this pleading.”
Intentional delays, Niram alleges, extended the completion date by 230 days and cost Niram nearly $1.5 million in damages and extra expenses.
The complaint does not say how much Arris and PC Studio were paid for post-completion date services.
Niram accused the fire district of breaches of contract and Arris and PC Studio of tortuous interference.
Niram is represented by New Jersey attorney Raymond G. Chow.
