{"id":33654,"date":"2025-12-17T23:04:16","date_gmt":"2025-12-18T07:04:16","guid":{"rendered":"https:\/\/essential.construction\/news\/white-house-ballroom-fight-shifts-focus-to-contractor-risk\/"},"modified":"2025-12-17T23:04:16","modified_gmt":"2025-12-18T07:04:16","slug":"white-house-ballroom-fight-shifts-focus-to-contractor-risk","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/white-house-ballroom-fight-shifts-focus-to-contractor-risk\/","title":{"rendered":"White House ballroom fight shifts focus to contractor risk"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">6 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/text-to-speech.divecdn.com\/newspost\/808219\/2025-12-17_17.18.59\/white-house-ballroom-contractor-risk.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>A federal judge on Tuesday cleared construction on the White House ballroom project to move forward, according to multiple sources, but construction attorneys say the ruling does little to reduce risk for the contractors tasked with building it.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The National Trust for Historic Preservation sued the Trump administration earlier this month to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.facilitiesdive.com\/news\/lawsuit-seeks-to-stop-white-house-ballroom-construction\/807980\/\" target=\"_blank\"><span><span><span><span><span><span><span>stop its ballroom construction project<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, which is now pegged at <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/thehill.com\/blogs\/in-the-know\/5652531-trump-cost-new-ballroom-400m\/\" target=\"_blank\"><span><span><span><span><span><span><span>$400 million<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>, double the initial estimate of $200 million, according to The Hill. The <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.dcd.287645\/gov.uscourts.dcd.287645.1.0_1.pdf\" target=\"_blank\"><span><span><span><span><span><span><span>lawsuit alleged the administration<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> started demolition and early construction activity before securing required approvals.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>For contractors, that kind of conditional green light creates a familiar but costly problem. Work can continue, but so does uncertainty. The national attention the job has garnered spotlights the risks contractors face when taking on a controversial project that gets mired in litigation.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWhen litigation impacts a project like this, a contractor has two immediate jobs,\u201d said Jason Lien, partner and co-chair of the construction and real estate litigation group at Maslon, a Minneapolis-based law firm. \u201cFigure out what, if any, work can move forward and how a potential suspension of work is addressed in the contract.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The Trump administration announced Bethesda, Maryland-based <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/clark-white-house-construction-ballroom\/756918\/\" target=\"_blank\"><span><span><span><span><span><span><span>Clark Construction Group<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> as the lead builder on the project in July, with Dallas-based AECOM providing engineering services. Neither firm immediately responded to requests for comment for this story.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p>The White House also tapped ACECO, a Silver Spring, Maryland-based contractor, for demolition of the East Wing. The firm couldn\u2019t be reached for comment Wednesday.\u00a0<\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Uncomfortable decisions<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>The ballroom project differs sharply from a typical commercial or residential renovation, Chris Staine, partner at Shumaker, Loop &amp; Kendrick, a Toledo, Ohio-based law firm, told Construction Dive. One major factor is the administration\u2019s decision to demolish the East Wing before plans for the new ballroom were completed or submitted for approval, he added.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Though owners sometimes authorize demolition before final plans are complete, Staine said sequencing typically happens only after designs are substantially developed, and rarely on a project of this scale and sensitivity.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWhat\u2019s so unusual is that they proceeded, especially since we\u2019re talking about not just your standard garden variety project,\u201d Staine said. \u201cYou\u2019re talking about the White House. You\u2019re talking about the East Wing. They demolished it. That was pretty breathtaking to do that under the circumstances.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>From a contractor\u2019s perspective, Staine said one of the most concerning issues is being asked to perform demolition work before permits are approved. That scenario would typically raise red flags in almost any jurisdiction.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIf I was a contractor and I was asked to move forward with demolition in the absence of a permit, obviously, I would be extremely uncomfortable with that,\u201d Staine said. \u201cI would place the owner on notice that such a directive runs counter to what the local building code and the building department\u2019s requirements state.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In that situation, Staine said a contractor would likely demand indemnification from the owner, and even still might decline to proceed.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cI don\u2019t know that I would be comfortable as a contractor,\u201d he said. \u201cI would absolutely require that the owner indemnify me for the negative consequences associated with that type of instruction.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Favorable ruling does not guarantee protection<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Once litigation emerges, a contractor\u2019s risk escalates quickly, said Lien. That\u2019s true even if courts stop short of ordering an immediate shutdown.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThe risks to the contractor rise quickly once a lawsuit enters the picture,\u201d Lien said. \u201cLitigation can slow work, trigger demobilization and remobilization, cause inefficiencies, increase material costs or delay payments, none of which the contractor controls.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper hide-small show-large\" id=\"desktop-carousel\"\/>\n<p><span><span><span><span><span><span>That uncertainty becomes especially important on widely watched projects such as the White House ballroom, where public scrutiny and legal pressure can spill beyond the courtroom and into a construction company\u2019s broader business, he added.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cIn higher-profile projects like the White House ballroom project, contractors may find themselves pulled into the dispute or the public narrative even if they had no role in the underlying controversy,\u201d Lien said. \u201cUncertainty burns money through delays, payment slowdowns and unwanted attention.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In October, for example, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/white-house-ballroom-historic-construction-risks\/804440\" target=\"_blank\"><span><span><span><span><span><span><span>ACECO was the target<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> of heightened online criticism, the company reported at the time.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Tuesday\u2019s ruling from the federal judge underscored the risk. The judge said the government should be prepared to <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.nbcnews.com\/politics\/white-house\/judge-allows-trump-white-house-ballroom-construction-move-forward-rcna249589\" target=\"_blank\"><span><span><span><span><span><span><span>tear out below-ground work<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> if it later prevents changes to what happens above ground, according to the NBC report.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Contract details do the heavy lifting<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Attorneys emphasize the construction contract will become the contractor\u2019s primary protection against negative outcomes.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cContractors that navigate these situations will treat them like any other major project disruption,\u201d Lien said. \u201cThey document cost and schedule impacts, communicate early and often with the owner and keep their options open in case the court orders a slowdown or shutdown.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Staine echoed that view. He called the construction contracts \u201crisk allocation vehicles\u201d that ultimately determine who absorbs delays and uncertainty when things go wrong.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cThere are risks that are well beyond the contractor\u2019s control,\u201d said Staine. \u201cIt\u2019s those types of risks that a contractor needs to be particularly mindful of when they\u2019re entering into the contract, so that they are not being held responsible for risks that are beyond their control.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Whether a contractor chooses to stay on a project mired in litigation becomes a business decision, shaped by those contractual protections.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<section class=\"storylines-carousel-wrapper show-small hide-large\" id=\"mobile-carousel\"\/>\n<p><span><span><span><span><span><span>\u201cWhether to stay comes down to contract, cash flow and reputation. If those don\u2019t line up, it may be time to walk,\u201d Lien said. \u201cA contractor\u2019s reputation takes a hit when the public stops seeing it as a builder and starts seeing it as part of the fight.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>That decision will ultimately boil down to a risk-reward calculation, said Staine. The outcome of that choice will vary due to firm size and overall financial resilience.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cSome contractors just can\u2019t weather sustained legal battles,\u201d said Staine. \u201cThe juice just isn\u2019t worth the squeeze.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/white-house-ballroom-contractor-risk\/808219\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 6 min This audio is auto-generated. Please let us know if you have feedback. A &#8230; <a title=\"White House ballroom fight shifts focus to contractor risk\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/white-house-ballroom-fight-shifts-focus-to-contractor-risk\/\" aria-label=\"Read more about White House ballroom fight shifts focus to contractor risk\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-33654","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/33654","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=33654"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/33654\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=33654"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=33654"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=33654"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}