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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Breach of Contract

On June 23, 2005, “Fluor Daniel Caribbean, Inc., a wholly owned subsidiary of Fluor Corporation, received [a]… jury verdict awarding $28.8 million to the developer of a resort hotel project in the Caribbean. Fluor Daniel Caribbean, Inc. was the general contractor on the project, which is located in the Cayman Islands.” “As a consequence, in its second quarter the company recorded a $65 million charge consisting of the jury award, estimated attorney fees and pre-judgment interest, and accounts receivable.” “During the course of the project, Fluor ceased work on extra facilities the developer added to the project scope without demonstrating the availability of funding to pay for such extra work. Fluor continued to perform the original contract base work. In January 2004, Fluor filed suit to force collection of invoices for work that had been performed by Fluor. Subsequent to the filing of the suit, the developer terminated Fluor, claiming that Fluor’s lack of progress constituted a material breach of the contract.” However, on “September 15, 2005, the judge who tried the case granted Fluor’s motion for a new trial, setting aside the unfavorable verdict in its totality. On September 29, 2005, in lieu of a new trial, the parties have stipulated to a judgment of no liability in favor of either side, and the action has been dismissed with prejudice.” This settlement “resulted in the reversal of $32.9 million of” the original $65 million charge.

Misconduct Type
Poor Contract Performance
Enforcement Agency
Non-Governmental
Contracting Party
International
Court Type
Civil
Disposition
Settlement
Date of Settlement
9/29/2005
Contractors Involved Penalty
Total
Fluor Corporation Unknown
Further Information Released
Fluor Press Release 6/22/2006
Fluor Press Release 2 6/22/2006
Fluor Press Release 3 6/22/2006

Federal Contractor Misconduct Database