Contracting company sues Michigan city over breach of contract

Rodney Woods Builder, Saginaw, Michigan, owned by Rodney Woods and represented by Matthew Gronda, claims the city of Saginaw gave work to other contractors, which costs the company “thousands of dollars,” according to the report.
 

Saginaw Chief Inspector John Stemple, who helped to coordinate the demolition of 862 blighted homes through the federal "Hardest Hit Fund" grant, told MLive that more than 600 of those were completed by Woods' company. Stemple said in the report that the demolition work was awarded to Woods and three other contractors pursuant to a bidding process the city uses every 2-3 years to secure demolition contracts.

 

Gregory W. Mair, who is representing the city, explained to MLive that the resulting contracts with the demolition firms are "not exclusive."
 

In the most recent contract, which expires July 1, Rodney Woods is the top-ranked bidder, followed by Mead & Sons Contracting, Rohde Brothers Excavating, S.C. Environmental Services and Braddock Demolition, Cleaning and Hauling, the report says.
 

Stemple said in the report that all those contractors, with the exception of S.C. Environmental Services, completed some home demolition work for the city over the course of the current contract. He explained to MLive that the Lansing-based company declined to participate due to the relatively small volume of work they would receive.
 

According to the report, the lawsuit filed by Woods claims his firm should have completed all 862 demolitions, alleging his crews were never at full capacity and that he "repeatedly" told city officials he was capable of performing more work. The attorney argues that amounts to a breach of the contract between Woods and the city and is requesting that the contractor be reimbursed for "all lost profits." Altogether, he estimated the total cost to Woods' company was as high as $750,000.