Harbert International, a longtime builder of U.S. embassies and consulates, filed a lawsuit on Wednesday in the U.S. Court of Federal Claims seeking at least $461,097,380 in damages from the Trump administration. The company says the State Department reneged on a $370 million settlement reached in September 2025 after the government paid only $501,636.
Background of the dispute
According to the complaint, the dispute spans three presidential administrations. State Department directives issued during President Trump’s first term in 2020 ordered Harbert to keep embassy construction projects moving despite the COVID‑19 pandemic. The company continued work on 17 projects worldwide, representing roughly two‑thirds of the State Department’s embassy construction program at the time.
When the pandemic shut down global supply chains, Harbert sought guidance on whether to pause construction, arguing that the contracts allowed an “excusable delay” that would let it send personnel home and secure sites. Instead, the complaint alleges the State Department instructed Harbert to remain ready, continue procuring and shipping materials, and document all additional costs for reimbursement.
Financial impact
Harbert says labor costs at the new U.S. embassy in Guatemala City alone were running about $1.3 million per month during the pandemic. The company submitted more than $500 million in requests for equitable adjustments and other claims related to pandemic directives, design changes, and alleged government‑caused delays.
The lawsuit covers 12 diplomatic construction projects in Turkey, Iraq, Thailand, Morocco, Mexico and Central America. The State Department has taken possession of all 12 facilities, some of which have been in use for more than three years.
Administration’s position
The complaint notes that a State Department chief of staff encouraged Harbert to certify its claims in March 2026, suggesting certification would ease implementation of the settlement. However, contracting officers began denying the claims in July, and by October 13, 2026, all 13 certified claims at issue had received final decisions.
Harbert’s president, Charles Bohn, said, “We did not want to take this step. The U.S. Government is an important partner, and we are proud of the work we do together to advance America’s interests and protect Americans serving overseas.” He added that the company kept its commitment under “extraordinarily difficult conditions” and is asking the government to honor its obligations.
Implications for future embassy projects
Harbert argues that if contractors lose confidence that the State Department will honor its commitments, fewer firms may be willing to undertake the highly specialized work of building secure diplomatic facilities. The company notes that the pool of qualified U.S. contractors has already shrunk, with some projects attracting only two or three bidders.
The lawsuit does not currently seek to enforce the alleged $370 million settlement itself, but Harbert reserves the right to add those claims later. The outcome could affect the government’s ability to secure reliable partners for future embassy construction and may influence the broader market for high‑security federal contracts.
Next steps
The case will proceed in the Court of Federal Claims, where the administration will have an opportunity to defend its actions and explain why the settlement was abandoned. Observers note that the dispute highlights the challenges of maintaining large‑scale overseas construction programs during unprecedented global disruptions.
Original reporting: Fox News (HLL/CB) — read the source article.
