Published: January 08, 2009 04:16 pm      

Hewlett Spencer files suit against county

Claim seeks $304,000 for services relating to Justice Center expansion project

Hewlett Spencer, LLC of Nashville has filed a lawsuit against Cumberland County for breach of contract involving the expansion project of the Justice Center and Cumberland County Jail.

The suit was filed Dec. 19, 2008 and seeks a judgment against the county and payment in the amount of $304,352.09 for Steve Hewlett's time and expense spent on the project.

Hewlett submitted a bill to the county for the same amount shortly after commissioners decided to rebid the complete Justice Center project and accepted a bid proposal which was significantly less than Hewlett Spencer's guaranteed maximum price.

Commissioners requested county attorney Jim Thompson contact Hewlett and his attorneys and attempt to work something out on the bill for a lower amount.

"We know we owe him $45,000, but the rest of this just doesn't make sense," 3rd District Commissioner Lynn Tollett said after the bill was submitted.

The suit centers around an agreement that was made by the Cumberland County Finance Committee in 2005 to use Hewlett Spencer at a rate of $45,000 for work on the project.

The suit alledges Cumberland County acted through Cumberland County Mayor Brock Hill and County Finance Director Nathan Brock when they accepted and signed an agreement (engagement letter) with Hewlett Spencer, LLC "to develop a program for new correctional, judicial and office facilities located in Cumberland County. This program may include but not be limited to the design, and development of additions and renovations as well as new facilities," the letter states.

The letter states the county would pay Hewlett Spencer $45,000 for "its consulting and professional services described plus the cost of all services (architectural, engineering, development) required to develop the pricing documents for these projects."

The letter is signed by County Mayor Hill, Finance Director Nathan Brock and Steve Hewlett.

The county has had an architectural contract with Upland Design Group on the Justice Center project for numerous years. The county also later hired Sparkman and Associates as consultants for rehab work on incorporating the old Cumberland High School in the project.

Funding the full project included building a 96-bed housing pod, expanding the Justice Center with new courtrooms and renovating the old high school for county offices.

The project would come at a guaranteed maximum price of $18,735,388, according to Hewlett of Hewlett Spencer, LLC. Hewlett submitted the guaranteed maximum price to commissioners during the September 2007 County Commission meeting.

Commissioners voted against accepting the maximum price submitted by Hewlett in September 2007 and decided to hard bid the complete project out again.

In January 2008 commissioners decided to go ahead with the full project and accepted the lowest bid price, which was submitted by Mid-State Construction, at a rate of just over $14 million. The rebid move saved the county millions of dollars.

Hewlett Spencer then submitted a bill in the amount of $304,352.09 on Feb. 12, 2008 for Hewlett's time and expense spent on the project.

To date the county has not paid Hewlett Spencer the $45,000 or the remainder of the expenses billed by Hewlett.

The suit claims Hewlett performed these services including numerous meetings with county officials, correctional officials, judicial officials and others and meetings with architectural, engineering and construction firms. The suit claims Hewlett reviewed development of detailed engineering, architectural and construction plans, development and review of detailed construction cost estimates and preparation of a guaranteed maximum price on a turn key basis.

The suit alleges four counts of breach of contract by Cumberland County. Count I is breach of contract, count II is promissory estoppel, count III is breach of contract implied in fact and count IV alleges breach of contract implied in law.

Cumberland County Mayor Brock Hill would not comment on the case citing that he does not comment on pending litigation.

The suit was filed in Chancery Court in the 13th Judicial District by attorneys of the firm Boult, Cummings, Conners & Berry of Nashville.

No hearing date has been scheduled as of press time.

Hewlett has been previously involved in numerous school construction and renovation projects in Cumberland County including the construction of Stone Elementary School, Brown Elementary School and renovations at Pine View, Crab Orchard and Pleasant Hill Elementary schools through another company, Education Facilities Services (EFS). Hewlett served as president of that company.