Wartburg memory facility sues contractor for $2.6M

Wartburg retirement community in Mount Vernon is suing a Massachusetts contractor for $2.6 million for allegedly mismanaging construction of a memory care center.

Wartburg’s Berkemeier Living Center accused Consigli Construction Co. of misrepresenting its ability to finish the project on time and on budget, in a complaint filed on Sept. 5 in Westchester Supreme Court.

Consigli “did not effectively and professionally manage the project,” the complaint states, “causing Berkemeier to sustain millions of dollars in damages that otherwise could have been saved or gone to patient care.”

“The project was delayed several months due to permitting and design issues beyond our control,” a Consigli spokesperson stated in an email. “We have not been served with a lawsuit and are in the process of negotiating a fair settlement.”

Wartburg, founded in 1865, operates a 34-acre campus in Mount Vernon that includes a nursing home, assisted living, and support services. It is a nonprofit organization affiliated with the Evangelical Lutheran Church.

Consigli was founded in 1905 as Peter Consigli & Sons, in Milford, Massachusetts. It is owned by its 1,800-some employees and does more than $3 billion in business annually, according to its website. It operates a field office in Pleasant Valley, Dutchess County.

Wartburg issued a request for proposals in 2020 for construction of an assisted living center for patients with memory and cognitive issues. The plan was to build a five-story, 50,000-square-foot structure to house 64 patients.

Wartburg hired Consigli in August 2021 to demolish Berkemeier Auditorium and to build the new facility in its place.

Wartburg chose Consigli, the complaint states, based in part on the contractor’s claims that it had innovative methods to save money and finish the project on time.

The contractor also claimed that an innovative steel framing system would save $500,000, according to the complaint.

“Almost from the very start of the project,” the complaint states, “Consigli had severe problems meeting its contractual obligations, particularly with respect to supplying sufficient manpower and constructing the building in accordance with the contract.”

Wartburg blames project delays on inadequate staffing and management, bad designs and slow procurement of electrical equipment. It alleges that Consigli simultaneously ran other projects that it favored over the Berkemeier project.

Consigli purportedly blamed delays in getting a building permit on the City of Mount Vernon and the project architect, according to the complaint. Wartburg says the explanations have no merit.

The building permit was issued in May 2022, pushing the construction completion date to March 1, 2023. Consigli, according to the complaint, unilaterally added five months, for an August 8, 2023 completion.

Delays cost Wartburg $2.6 million in additional finance charges, loss of income and cash flow, and extra fees and insurance premiums, the complaint states.

Wartburg accused Consigli of breach of contract and fraudulent inducement.

The organization is represented by Katonah attorney Michael R. Gordon.

The Berkemeier Center formally opened this past April 30.