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The Housing Authority of New Orleans (the Authority) contracted with Parkcrest Builders, LLC (Parkcrest) to construct a public housing project. The project was delayed and the Authority terminated Parkcrest prior to completion, and entered into a takeover agreement with Parkcrest’s Surety. The Surety retained Parkcrest to complete the work, and later notified the Authority that it had achieved substantial completion. The Authority asserted deficient and incomplete items remained on the project, which the Surety refused to complete. The Authority then solicited bids for the remaining work, and awarded the work to a replacement contractor.
Parkcrest sued the Authority for breach of contract and also asserted that any delays on the project were excusable and, therefore, not subject to liquidated damages. The Authority counterclaimed against Parkcrest for added costs to complete the project. The Surety intervened, also seeking a ruling that all delays were excusable. The Authority then counterclaimed against the Surety for completion costs.