Skanska terminates B2 construction contract

Forest City Ratner can hire another company, but Swedish firm partially controls modular facility

From left: Forest City Ratner's MaryAnne Gilmartin, rendering of B2 and Skanska USA CEO Mike McNally
From left: Forest City Ratner's MaryAnne Gilmartin, rendering of B2 and Skanska USA CEO Mike McNally

Skanska USA Building cancelled its contract for Forest City Ratner’s Pacific Park, formerly known as Atlantic Yards, in the latest chapter in an ongoing legal tussle between the joint venture partners on Tuesday.

“We believe in modular and have worked tireless to get B2 back on track since Skanska blindsided us by ceasing construction and putting 157 Workers On The Street last month,” MaryAnne Gilmartin, president and CEO of Forest City Ratner, said in an emailed statement. “Skanska has responded with inaction and inertia, trying to leverage us financially by stonewalling B2’s progress.”

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Now that Skanska is no longer the contractor on the project, FCR is free to hire another company to usher the project through to completion, Crain’s reported. But because the Swedish firm still partially controls the Brooklyn Navy Yard modular facility making the B2 units, the matter is complicated.

Both sides also headed to State Supreme Court today over allegations over who was at fault for delays and cost overruns at the 363-unit building dubbed B2 BKLYN. A state court judge denied Forest City’s request that the shuttered factory be reopened, but ordered board members of the modular company FC+Skanska Modular to determine how the facility will now be run. [Crain’s]Julie Strickland