Sandy Springs settles lawsuit with construction company

Sandy Springs has called a workshop at City Hall, Oct. 18, on redeveloping and revitalizing the community’s North End. CITY OF SANDY SPRINGS
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Sandy Springs has called a workshop at City Hall, Oct. 18, on redeveloping and revitalizing the community’s North End. CITY OF SANDY SPRINGS

Sandy Springs agreed to pay Holder Construction $1.8 million to settle a two-year lawsuit.

The city and the construction company filed lawsuits against each other in 2019. Holder Construction was the general contractor for the $239 million City Springs development.

The city accused Holder of poor construction work and withheld funds. Holder sought nearly $3.5 million for nonpayment of work performed, Sandy Springs attorney Dan Lee said.

The company first asked for $2.6 million and then amended the lawsuit to $3.5 million, he said.

During a Tuesday meeting of the Sandy Springs Public Facilities Authority, officials voted to resolve the dispute with Holder. The vote formally dismissed the lawsuits through a settlement agreement of $1.8 million, according to Lee.

Sandy Springs also paid Holder an additional $1 million during litigation, city spokesman Dan Coffer told The Atlanta Journal-Constitution.

Dave O’Haren, chief financial officer for Holder Construction, told the AJC that payment was received last summer and the city had still owed the company $1.5 million.

The final settlement amount was payment for the outstanding balance owed and to resolve other issues between the parties, he said.

“The project is fully complete and has been built per plans and specifications,” Holder said. “We have completed our contractual obligations.”

Settlement funds to Holder were paid from the city’s construction fund, Lee said.

Following the vote, Mayor Rusty Paul said most of the project was done well. “We’re glad to be able to resolve this issue and get this behind us and move from there.”

In 2019, Sandy Springs also sued City Springs architect, Rosser International, claiming the company prematurely declared the project complete and caused the city to overpay.

The city is waiting for a decision from Fulton County Superior Court in the lawsuit, a Sandy Springs statement said.