April 10, 2025

Portland Utilities Sues Berkeley County Over Construction Delays

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News Summary

Portland Utilities Construction Company has filed a lawsuit against Berkeley County for over $10 million in damages caused by significant delays and cost overruns related to the Red Bank Road project. The lawsuit alleges miscommunications and unforeseen obstacles that hampered the project timeline and escalated expenses. While the county has remained silent amid the legal proceedings, this case raises serious questions about project management and contractor relationships in local infrastructure projects.

Portland Utilities Takes Legal Action Against Berkeley County Over Costly Delays

Contractor Files Lawsuit Claiming Millions in Damages

In a dramatic turn of events, Portland Utilities Construction Company has launched a lawsuit against Berkeley County, seeking more than **$10 million** in damages due to significant construction delays and rising costs associated with the **Red Bank Road project**. The legal battle has brought to light a series of alleged miscommunications and complications that have left the local contractor in a tough financial position.

The **lawsuit**, which names Berkeley County and **Michael Baker International Inc.** as defendants, centers around a five-month delay that the contractor claims began in March 2022. This delay was initiated when Berkeley County issued a **notice to proceed** without securing the necessary permit from the **South Carolina Department of Transportation** to close lanes. Portland Utilities asserts that they were unable to commence work until **August 2022**, creating a domino effect of issues that escalated costs and extended timelines.

Unforeseen Obstacles Add Fuel to the Fire

Portland Utilities goes on to allege that the county, along with its engineering firm, misled them regarding the **conditions of the work site**. The contractor asserts that undisclosed **underground obstacles** such as concrete structures, sewer connections, and various utility lines for telephone and gas services were present at the site. This revelation not only contributed to the delays but also forced Portland to incur additional costs due to these unforeseen challenges.

As if the problems stemming from the **lack of permits** were not enough, the situation worsened when Red Bank Road remained unfinished for an astonishing **nine months** after the sewer work was completed in June 2024. This period of inactivity further complicated the situation, leading Portland to request a **road restoration plan** in May 2024. However, it wasn’t until **November 25, 2024**, that the plan was finally received, and at that point, a different contractor had been brought in to complete the task.

A Frustrated Family Operation with No Recourse

Portland Utilities, described as a **family-operated business**, has expressed concern over Berkeley County’s lack of action and poor communication throughout the project. The lawsuit marks a significant moment for the company, as it represents the **first instance** of Portland having to take legal action against a client due to the issues surrounding this contract.

Initially contracted for **$8.3 million**, the complications and subsequent costs have pushed the total sought in the lawsuit well beyond the original price. Portland Utilities outlines that they were forced to cover costs for contractors and workers despite the county refusing to pay undisputed amounts outlined in their contract.

Berkeley County Remains Silent Amidst Legal Proceedings

The news of this lawsuit has sent ripples through the local construction community, raising questions about the management and oversight of county projects. While the lawsuit unfolds, Berkeley County has opted not to comment on the ongoing litigation, leaving many to wonder about the implications this case may hold for future projects and contractor relationships in the region.

Portland Utilities is not only battling to recoup the financial losses experienced over the course of the Red Bank Road project but is also highlighting the necessity for better communication and transparency in public works initiatives. As the lawsuit progresses, all eyes will be on the outcomes and any potential ripple effects it may have on future public-private partnerships in the area.

With public infrastructure projects pivotal to community growth and development, this case serves as a stark reminder of the complexities involved and the critical need for streamlined processes and clear agreements between contractors and municipal entities.