What Will Happen to the Barclay's Apartments?

The construction company building the prefabricated apartment building next to the Barclays Center in Brooklyn has terminated its contract with the developer, Forest City Ratner.

“We could not continue to incur millions of dollars in extra costs with little hope that Forest City would take responsibility for fixing the significant commercial and design issues on the project,” said Richard Kennedy, co-chief operating officer at Skanska USA Building, in a statement.

Skanska stopped work on the 34-story residential high rise project in August, after citing design flaws and cost overruns. It also filed suit against a company owned by Forest City Ratner.

In turn, the developer filed suit against Skanska.

Skanska’s decision came as a judge ordered the construction company to restart the process for settling disputes as described in the contract. The judge denied a request from Forest City to reopen the modular factory located in the Brooklyn Navy Yard.

MaryAnne Gilmartin, president and CEO of Forest City Ratner, criticized Skanska, describing the company’s actions as “deplorable and disappointing” and resulting in 157 people being put out of work. The tower at Atlantic Yards, now branded as Pacific Park, was to be completed by July 2014.

“We will continue to rigorously pursue our options through the courts to get B2 built,” Gilmartin said in a statement.

The $117 million contract called for Skanska to build 930 modular units, 50 percent of which were to be affordable housing.