According to the lawsuit, “there was significantly less suitable material than required and expressly represented by the owners.”
As a result, the contractors had to “excavate and stockpile a significant amount of additional material and haul it further than anticipated, which significantly increased the contractor’s costs and expense of the work,” the document said.
Shaw’s subsidiary, Stone & Webster, has paid the subcontractors for the additional work, the lawsuit says. The company then billed the utilities for that amount.
A contract between Shaw, Westinghouse and the utilities maps out how disputes are handled for the $14 billion project. According to the lawsuit, the contract states if there is a billing dispute, the owners are required to pay half of that disputed amount. The owners also have to tell the contractors within 15 days whether an invoice is being disputed.
The breach-of-contract suit was filed in U.S. District Court last week.
Separately, the utilities are disputing an estimated $800 million claim, made by Shaw and Westinghouse. The vendors say Georgia Power is responsible for $400 million of that commercial claim. The utility continues to negotiate with Shaw.