Spire Resolves Dispute Relating to Concrete Company Acquisition
As a part of its expansion into the Texas construction market, Lithko Contracting purchased Capital Concrete Contracting, Inc. (CCCI). However, two years after the purchase, Lithko sued Capital Concrete’s previous owners for misrepresenting the value of the assets it sold, stating it was realizing significantly less profit than had been forecasted by CCCI.
Spire was retained by CCCI’s previous owners to analyze the project records and forecasts leading up to the acquisition to ascertain if the costs, revenue, and profit forecasts were reasonable. Spire was also asked to analyze Lithko’s financial performance after the acquisition to determine if Lithko’s management of the projects contributed to the decline in profits on those projects. Spire’s efforts included an in-depth analysis of the records for the major projects involved in the acquisition, including original estimates, contracts, change orders, regular cost reports, and other project documentation to analyze the evolution of the project cost forecasts both prior to the acquisition and after.
Spire’s analysis included assessing the causes for the cost forecast variations and attributing responsibility where possible.
After analysis, Spire determined that Capital Concrete’s cost control and forecasting techniques were in line with industry practices. Spire also ascertained that Capital Concrete was not responsible for the reduced profit that Lithko realized and did not misrepresent the value of its project portfolio. Significant changes in some of the projects after the acquisition, pandemic impacts, and other market conditions were the primary drivers in the reduction of profits on the project. Spire’s analysis indicated that Lithko had not substantiated its claims with evidence to attribute the impacts to CCCI.
Based in part on Spire’s analysis, CCCI’s previous owners were able to reach a settlement with Lithko, with terms favorable to CCCI.
Spire’s team of experts is comprised of experienced construction professionals that understand the range of risks companies face throughout the dispute resolution process. From managing claims and quantifying damages to assessing productivity loss, calculating schedule delays, and evaluating the standard of care, Spire’s litigation support experts analyze each particular dispute situation to ensure the best outcome for its clients.
Navigating construction disputes is complex, requiring expertise at every stage from mediation to arbitration and litigation. Spire Consulting Group offers tailored guidance to address technical challenges and provide the necessary support throughout the dispute resolution process. With extensive hands-on construction experience, Spire’s litigation support experts deliver clear, concise, and objective analyses, empowering clients to build the strongest possible case.
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