July 27, 2025 — Redmond, Wash. Subcontractors SAK Builders and Roschmann Steel & Glass Constructions filed lawsuits against the Skanska-Balfour Beatty joint venture, the general contractor for Microsoft’s $5 billion East Campus Modernization project, alleging millions of dollars in unpaid work due to delays, change orders, and supply chain issues.
The disputes center on the 72-acre campus overhaul, which began in 2018 and includes demolition of 12 structures, construction of 17 new office buildings totaling nearly 3 million square feet, a 1,100-foot pedestrian bridge over State Route 520, underground parking for 6,500 vehicles, a thermal energy center, and geothermal infrastructure targeting ILFI Zero Carbon and LEED Platinum certifications, according to Construction Briefing.
SAK Builders, a concrete contractor based in Sumner, claims it is owed $2.19 million for work performed from March 2022 to June 2024 and is seeking payment from the project’s bonding insurers, as reported by Yahoo News. The firm later settled its dispute with the joint venture in September 2025, per Puget Sound Business Journal.
Roschmann, awarded a $30 million subcontract in 2021 for glass curtainwall façades, alleges $10 million in unpaid costs stemming from COVID-19 lockdowns, labor shortages, and supply chain disruptions from Russia’s 2022 invasion of Ukraine.
The company also claims unpaid amounts for six months of repair work after a glass failure in August 2023. Roschmann informed the JV of delays but says compensation was refused despite contract provisions for exceptional circumstances, leading to severe financial hardship, US Glass Magazine reported.
Roschmann filed its breach-of-contract suit in February 2025 in King County Superior Court and was terminated by the JV in November 2024 for alleged deficient performance.
Roschmann said the overruns stemmed largely from labor shortages and supply chain disruptions tied to COVID-19 and Russia’s invasion of Ukraine, and claimed the joint venture refused to cover them.
The Skanska-Balfour Beatty JV denies the claims, countersued the subcontractors, and hired All New Glass to complete Roschmann’s work using its designs.
In October 2025, the JV sued Harco National Insurance Company over a $3.48 million retainage bond, alleging breach of contract and bad faith after Harco denied coverage despite receiving documentation.
Harco allegedly told Skanska Balfour Beatty that it didn’t have enough information to establish coverage despite receiving ‘all relevant, determinative documentation,’ as noted by the joint venture.
Microsoft, which opened several buildings in late 2023, is not named as a defendant. The project, the Puget Sound region’s largest construction effort, announced in 2017, faces ongoing delays with no updated completion date. Court records for SAK Builders v. Skanska Balfour Beatty JV are available in King County Superior Court case 25-2-13792-9 SEA.
