Clash with contractor halts work at Forest City’s Pacific Place

"Significant commercial disputes" lead Skanska to furlough workers

TRD New York /
Aug.August 28, 2014 10:00 AM

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

Related Articles

A rendering of 615 Dean Street in Brooklyn and TF Cornerstone president Frederick Elghanayan

TF Cornerstone lands financing for Pacific Park dev sites

Brodsky Org picks up a second Pacific Park development site

Long Island Cheat Sheet: Alibaba co-founder Joseph Tsai could buy Nassau Coliseum… & more

TF Cornerstone paid $143M for Pacific Park development sites

EB-5 money up in the air after Greenland agrees to sell Pacific Park site

The dismantling of Forest City Ratner

With $6.8B Forest City deal set to close, Brookfield says it’s now the biggest commercial landlord in town

Shareholders greenlight Brookfield’s $6.8B purchase of Forest City