Construction on a residential tower being built out of modular units in Brooklyn has halted.
Work on Pacific Park — formerly known as Atlantic Yards — ceased because of a monetary conflict between contractor Skanska USA Building and developer Forest City Ratner.
Co-chief operating officer of Skanska USA, Richard Kennedy, told Crain’s that the contractor, as a consequence of issues with scheduling and costs, issued a stop work notice on Tuesday.
“We have run into some significant commercial disputes that we have been working hard to resolve, but have been unable to do so,” Kennedy told Crain’s.
The tower, named B2, is the first residential tower to go up at the site.
Forest City recently joined forces with the Shanghai-based Greenland Holding Group, forming Greenland Forest City Partners, to further develop the long-stalled, $4.9 billion project. Forest City and Skanska formed FCS Modular, the construction company that is responsible for building the modular tower.
On Wednesday, workers were notified of their furlough. Without resolution of the conflict, layoffs will begin on Sept. 23. [Crain's] – Claire Moses