The construction market in Texas is often highly competitive, with major building companies vying for high-profile jobs. Military contracts are common in this field; however, when a construction company’s financial recording comes into question over such a project, this can result in legal action and financial investigation.
Such is the case for one construction business in Irving, which faces an investigation by the United States Securities and Exchange Commission for alleged financial recording errors.
Company builds a variety of projects
The construction company in question is responsible for several major projects in locations all over the world, including Los Angeles, Canada and Africa. It also won several major highway construction projects in the past in and around Texas and continues to do so today. However, a recent financial report by the business has put it under legal scrutiny.
Financial records subpoenaed
The Securities and Exchange Commission requested that the construction company turn over records relating to a military contract it took on in 2019. The project, located in Virginia, came with a fixed price, and company heads believe all included costs were recorded correctly at the time of the bid but that other financial factors may have been accidentally overlooked. The SEC is currently reviewing these records to judge whether finances related to the military project are correct and if the company committed a contract breach.
Financial reports delayed
Because this investigation is still active, the construction company decided to delay revealing its financial quarterly reporting for late 2019 and early 2020. These records may not see a public release until the SEC settles the matter.
Financial investigations can impact nearly every level of business. Those involved may want to contact an attorney to protect their rights.