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Luxury Hotel Successfully Disputes $700,000 Overcharge By Remodeling Contractor

The firm represented a high-end luxury hotel in a dispute over the balance owed on a substantial remodeling project.  The project was a cost-plus contract which took over a year to complete.  Concerned about the contractor’s final billing, the hotel hired the firm to perform a detailed audit of the contractor’s submitted costs.

The firm delivers efficient, cost-effective result.

As our audit revealed numerous discrepancies and disallowed costs — including the contractor’s unapproved use of an affiliated subcontractor which affiliation the contractor did not disclose  – the case proceeded to mediation.  Based on our initial evaluation, it appeared the contractor may have been using its affiliated subcontractor for unnecessary work.  At mediation, the contractor agreed to reduce its final billing by over $700,000.00, with the hotel paying no additional monies to the contractor.

Counsel: Daniel P. Scholz

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