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Will the Rams and Chargers' stadium delays lead to cost overruns?

Because of the recent draft, the National Basketball Association has the spotlight in the sporting lives of Southern Californians for now. But it will only be a matter of time before the NFL retakes its media foothold later this summer.  When it comes, most talk will center around the Los Angeles Rams and their new neighbor, the Los Angeles Chargers, who moved from San Diego this winter to play (eventually) in the teams’ $2.6 billion stadium in Inglewood.

Since the Chargers’ announcement, the new stadium project is off to an inauspicious start. Because of heavy winter rains, the stadium is not slated to be completed until 2020; a full three seasons from now. While the stadium may pay dividends in the long run, both teams are poised to lose hundreds of millions in lost revenue from having to play in temporary digs (the L.A. Coliseum for the Rams, and the StubHub Center for the Chargers).

And this is before potential construction cost overruns for the project become a reality. Construction cost overrun cases stem from disputes over the scope of work agreed to by parties, unanticipated conditions as well as undocumented work that was needed in excess of the original contract. These cases require a close examination of all documents and communications relating to the work to determine if legal issues exist and can be resolved.

Indeed, you don’t need to have a billion dollar construction project in order to fall victim to improper (or illegal) construction cost overruns. If you have questions about your rights and options, an experienced construction litigation attorney can advise you.  

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Klein & Wilson

Klein & Wilson
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