Court Orders AAI to Make Decision on WTC Subcontract; Subcontract Rejected
September 25, 2012

by Kaitlan Mitchell, kmitchell@glass.com

The U.S. Bankruptcy Court for the Eastern District of Pennsylvania has granted general contractor Skanska USA's recent motion to order American Architectural Inc. (AAI) to resume or reject its subcontract related to work being done at the World Trade Center (WTC). The subcontract was rejected, as defined by the motion and took effect September 14, 2012.

Skanska USA had subcontracted AAI for the interior glass work and interior glass railing for the World Trade Center's PATH Hall. Skanska had alleged in its motion that "the quality of AAI's submittals have been deficient and durations in which it has taken them to complete the submittals have been excessive" on the project. As a result of the granted motion, AAI has returned all of the "materials and drawing (in CAD and PDF format)" for the PATH Hall Project to Skanska USA.

According to a court order, both parties came to the agreement that Skanska owes AAI $5,328,968 for their subcontracted work through September 14, 2012. This final payment includes but is not limited to monthly requisitions, change orders and extras performed up until the date of rejection.

With the exception of amounts due and owing to AAI under the subcontract, both parties also have been ordered to exchange mutual releases of all claims. This includes the final payment. 

At press time, a separate motion, filed by AAI in an effort to sell its assets, including several subcontracts, remained under the review of the court.

This story is an original story by USGlass magazine/USGNN™. Subscribe to USGlass magazine.
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