Embassy contractor seeks $461 million in federal court

B.L. Harbert International is asking a federal judge for $461,097,380 in unpaid costs. The company filed its suit in the U.S. Court of Federal Claims on Wednesday. It says the government failed to reimburse it for work performed under unusual conditions during the pandemic.

Harbert has built dozens of diplomatic facilities for the State Department since 1999. The lawsuit covers 12 projects across four continents, including sites in Turkey, Iraq, Thailand, Morocco, Mexico and Central America. The company argues that State Department directives from 2020 required it to keep moving while the world shut down.

The firm claims career officials agreed to a $370 million settlement in September 2025. However, the government paid only $501,636 before dropping the deal. Harbert alleges that political leaders stepped in after the agreement was reached. The company says the decision to abandon the settlement came from the top of the administration.

When the pandemic started in 2020, Harbert was managing 17 projects. That workload represented nearly two-thirds of the State Department's construction program. The contract allowed for excusable delays, which would have let the company pause work. Instead, the department told Harbert to stay ready to mobilize. It also instructed the firm to continue buying and shipping materials to avoid falling behind when construction resumed.

Labor costs for the new embassy in Guatemala City alone reached $1.3 million per month. Harbert warned in March 2020 that it could not pay idle workers without reimbursement guarantees. Weeks later, State officials told the company to keep procuring materials. The suit notes that the government has taken possession of all 12 facilities. Some have been in use for more than three years.

Charles Bohn, president of BL Harbert's International Group, said the company did not want to sue. He noted that the firm kept its commitment under difficult conditions. Bohn stated, "We are asking the government to keep its commitment to us." The company says it certified its claims in March 2026 after State's chief of staff encouraged the step.

State contracting officers began denying claims in July 2026. By October 13, 2026, the agency issued final decisions on all 13 certified claims. The current lawsuit seeks the $461 million plus interest. It does not yet ask the court to enforce the earlier $370 million settlement, though Harbert reserves that right for later.

The company warns that the dispute affects future hiring. Harbert says strict security and vetting rules now limit bidders on some projects to two or three firms. It argues that if contractors doubt the government will honor its obligations, fewer companies will take on the work.