URGENT UPDATE: A Glen Burnie electric company, Grounded Electrical Construction, LLC, has filed a lawsuit against the Howard County Board of Education, claiming a staggering $5.5 million in COVID-related cost increases for work at the newly constructed Guilford Park High School. This legal battle could change the landscape for future school construction contracts.
Guilford Park High School, which opened its doors in August 2023, is the 13th high school in Howard County, with total construction costs reaching $129 million. Grounded Electrical was awarded a $13.9 million contract in April 2020, under a “firm fixed-price contract” that, according to the company, left them vulnerable to unforeseen increases in expenses due to the pandemic.
Grounded Electrical asserts that the COVID-19 pandemic led to significant price hikes, prompting them to seek a contract revision, which the school board rejected. The lawsuit, filed in February 2024, argues that the Board should have opted for a more flexible contract that could accommodate extraordinary circumstances, such as a global health crisis.
The Howard County Public Schools (HCPSS) has stated it cannot comment on ongoing litigation but emphasized that using firm fixed-price contracts is a standard practice among school systems. This is notably the only breach-of-contract case the Howard County Board of Education has faced since the pandemic began.
Interestingly, this isn’t Grounded Electrical’s first legal challenge against a local school system. In 2022, they took legal action against the Anne Arundel County Board of Education after being denied a bid for Hillsmere Elementary School.
A ruling was anticipated in early November, but recent court records indicate delays, with the judge set to address a settlement conference on October 10, 2023. Grounded Electrical reportedly failed to appear at this conference, raising questions about the future of the suit.
As this case unfolds, it has the potential to significantly impact how school districts manage contracts in times of crisis. Stakeholders in the education and construction sectors are closely monitoring the situation, as it may set a precedent for future agreements amidst unpredictable global events.
For the latest updates on this developing story, stay tuned. If you have any information or tips, please contact Brendan Nordstrom at [email protected] or at 443-900-1353.
