NEW YORK CITY—Despite previous reports, Skanska first broughtsuit against Forest City Ratner Cos. in their dispute over thePacific Park Brooklyn site; not the other way around. The bitterrift has left construction of the project's first modular multifamilybuilding (known as B2) stalled.

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Regarding the suit—which was filed at 11:36 a.m. Tuesday—and thesquabble in general Skanska USABuilding co-CEO Richard Kennedy says, “The work at the B2 Projectis currently stopped because Forest City Ratner has steadfastlyrefused over many months to engage in an honest dialogue about theserious commercial and design issues facing the project. ForestCity Ratner represented with great confidence they had developedthe high-rise modular solution. According to Forest City, theyhad “cracked the code. That turned out not to be true. Now, ratherthan acknowledging their problems, they are slinging mud atSkanska. But slinging mud at Skanska in the press and in legaldocuments that misstate the actual facts is not going to get the B2Project moving again or put the modular factory workers back towork.

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"Skanska prides itself on itsability to work through challenges in a way that is timely,effective and respects the commercial interests of all partiesinvolved," he continues. "Unfortunately Forest City Ratner operatesby a different standard and so we find ourselves in this currentsituation. Despite the rhetoric from Forest City Ratner, weremain hopeful commercial and economic sensibilities will prevailand these matters will be resolved so we can get back to buildingthe B2 Project and get the factory workers back towork.”

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In a countersuitbrought by FCRC—at 11:52 a.m. Tuesday—the developer charges thecontractor with “multiple failures and missteps as the constructionmanager.” It is seeking damages. Skanska lacked the skill,experience and diligence to complete the project in accordance withthe promised schedule and price.”

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FCRC president and CEO MaryAnne Gilmartin says in a statement,“Our priority is to reopen our factory and put the employees thatSkanska wrongfully furloughed back to work so we can resumeconstruction on B2. Skanska's unilateral action has barredconstruction from continuing, and this lawsuit is the first of manysteps we intend to take to get this building moving again.”

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Rayna Katz

Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.