Tutor Perini has been ordered to pay an additional $42.4 million in damages related to the construction of the dual-branded W and Element hotels in Philadelphia, adding to the company’s growing legal liabilities stemming from the troubled project.
The latest judgment, issued by the Philadelphia Court of Common Pleas on July 1, awards damages to Ventana DBS, a subsidiary of Clayco that supplied and installed the building’s window and curtain wall systems.
Court cites contract breaches and project mismanagement
According to the court’s ruling, Ventana faced repeated project disruptions caused by Tutor Perini’s alleged failure to properly manage the construction site.
The court found that the contractor failed to remove debris left by other subcontractors, preventing Ventana from transporting window wall components efficiently. It also determined that inadequate oversight of concrete work resulted in improperly placed reinforcing steel, creating installation challenges and delaying Ventana’s work.
The ruling concluded that these issues stemmed from Tutor Perini’s material breaches of contract, forcing the subcontractor to absorb additional costs throughout the project.
Follows $174.6 million judgment earlier this year
The latest decision comes just months after another major legal setback for Tutor Perini.
In April, the same Philadelphia court awarded approximately $174.6 million to project developer Chestlen Development, finding that defective concrete work and extensive construction delays significantly impacted the project.
Tutor Perini secured the original $239 million contract to build the 51-story, 755-room hotel tower in 2015. The project ultimately opened in 2021 after experiencing more than 890 days of delays, according to court records.
Court alleges concealment of construction defects
In its July ruling, the court also found that Tutor Perini knowingly concealed concrete defects and later attempted to attribute resulting delays to Ventana.
The judgment states that the contractor acted in bad faith by failing to disclose known construction issues while shifting responsibility to its subcontractor.
The damages awarded to Ventana include nearly $7.5 million in unpaid subcontract balances, approximately $12.7 million in interest and penalties, as well as attorney fees and litigation costs.
Tutor Perini plans to appeal
Tutor Perini said it intends to challenge the decision.
“We strongly disagree with the court’s latest ruling and believe it does not reflect the merits of the case,” a company spokesperson said. “As previously stated, we intend to appeal and will continue pursuing all available legal remedies.”
Clayco Executive Chairman Bob Clark welcomed the ruling, saying it confirmed that Ventana had been unfairly impacted by project management failures.
He said the court recognized that Tutor Perini failed to properly coordinate subcontractors while concealing significant concrete defects, leading to costly delays and additional work.
The case marks another significant legal challenge for Tutor Perini as litigation surrounding the Philadelphia hotel project continues.
