Rackspace slapped with
A Dallas-based engineering firm is suing Rackspace Hosting Inc., claiming the technology company still owes and refuses to pay about $1.1 million for work performed at its San Antonio headquarters.
M and , which also has a San Antonio location, filed its original petition Thursday, court documents show,true religion outlet.
According to the lawsuit, the two parties entered into a contract in December 2008 for plumbing, electrical and mechanical work to be performed at the hosting and cloud computing company's facility. The original contract states that the work would be done from January 2009 to April 2009 and cost about $2.2 million.
In the lawsuit, Brandt says Rackspace added excessive changes to the project that required the engineering company to perform more work than originally agreed upon, failed to install communication lines that were necessary to the work and moved personnel into the construction area before the work was completed, further delaying the job. Because of those delays and changes, Brandt didn't finish the job until March 2010 and the final cost exceeded $6 million, said , the director of the Coats Rose San Antonio office and the attorney for the engineering firm. He added that Rackspace has paid more than $5 million in connection to that job but still owes the amount Brandt is suing for.
"We've been waiting over a year to get paid," Reed said. "We've tried and tried and just haven't got there."
A Rackspace representative said the company would not comment on pending legal action.
Brandt says it never received a formal written document stating why they haven't been paid the remaining balance.
"There's never been any formal rejection of any of our work, never any criticism of the quality of our work, never any denial that the work we performed was work they asked us to perform," Reed added. "It was all documented and formally prepared change orders, which despite all of our efforts, we could not get them to sign. They just accepted the benefit of our work and the value of our work but refused to pay for it."
As of Tuesday afternoon, Rackspace had not been officially notified of the lawsuit, Reed said.
Brandt also was planning to file a constitutional lien Tuesday against the property where the work was performed, seeking foreclosure as a means for payment, Reed said.