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A state development agency (the Agency), received state and federal funding to build a 1,200-mile fiber optic network. It contracted with G4S Technology LLC (G4S) for the project under a $45.5 million design-build agreement. As a result of project delays – the cause of which the parties disputed – G4S achieved final completion of the work more than one year after the contractual deadline. Shortly after completion, the Agency issued a notice of withholding, claiming a right to withhold $4 million from G4S to compensate the Agency for delays and expenses incurred as a result of G4S’s alleged failures to perform.