Balfour Beatty Rail, Inc. v. The Kansas City Southern Railway Company, 2016 U.S. Dist. LEXIS 39086 (N.D. Tex., March 25, 2016)
The contractor contracted with owner to install 65 miles of railroad track, for a price of $12,206,666. The owner had engaged another contractor to grade and prepare the substrate for the railroad track, and was to furnish and deliver aggregate for track ballast and track rail material to various locations along the rail route. The contractor’s scope included all other work. The contractor fell behind in its work, and the owner hired additional contractors to complete a portion of its scope. The contractor blamed the delays on the owner’s late delivery of aggregate and rail, and improper subgrade preparation under a theory of differing site conditions. It sought $4.35 million in unpaid change orders, delay damages, and penalties under Texas’ prompt payment statutes. The owner in turn sought $2.6 million in completion costs and costs of wasted aggregate.