City Will Pay Delay Damages After Stalling Project Start

Tuesday, July 05, 2011 07:42 am

Delay Damages

Wallace C. Drennan, Inc. v. City of New Orleans, 2011 La. App. Lexis 500 (4th Cir. Apr. 27, 2011)

Louisiana bid law prohibits a local government entity from sitting on an award until funding comes through without officially notifying the successful bidder of the delay. The City of New Orleans (City) awarded two publicwork contracts for street and utility renovation to Wallace C. Drennan, Inc. (Drennan) but then failed to execute the contracts within the statutory deadline. Drennan sued for delay damages, and it looks like it will get them.

Louisiana Public Bid Law requires a g [...]