The project was a once in a lifetime new build of an entertainment venue that had an initial budget of just under $1B. Construction was interrupted by the Covid pandemic and was completed nearly two years later than planned at a cost of $2.3B.

Due to the cost and schedule overruns, the Owner, a publicly traded entity discontinued payments to their project management consulting firm midway through the project and organized to finish the project with their own team. CMX’s client, the project management consulting firm filed suit to recover direct damages and the Owner filed a countersuit claiming direct and consequential damages.

CMX was engaged by the project management consulting firm due to their expertise and ability to objectively evaluate and report on the merits of both claims.

After a thorough review of the project record CMX determined that the factual record did not support the Owner’s claims. Neither the contractual agreement nor the events that unfolded during the project supported a claim for consequential damages. Furthermore, any direct damage recovery that could be proven to be incurred by the Owner was limited to the project management consultant’s liability insurance. 

CMX found that the Owner’s expert witness proffered a version of events that was, at best, misguided and at worst fantastical.

After release of the CMX expert witness report rebutting the Owners claims the project management consulting firm’s attorney settled both claims wherein CMX’s client recovered 65% of their claim and the Owner settled for less than 10% of their claim.