Embassy Builder B.L. Harbert Sues the State Department for More Than $461 Million, Saying Leadership Backed Out of a $370 Million Settlement
The contractor says State told it to keep working through the pandemic, then paid only $501,636 of an agreed settlement. The dispute spans three administrations. State had not commented.
A company that has built dozens of U.S. embassies is taking the government to court, according to a Fox News exclusive.
The suit. B.L. Harbert International filed in the U.S. Court of Federal Claims on Wednesday, seeking at least $461,097,380 plus interest. The complaint covers 12 diplomatic construction projects on four continents, including sites in Turkey, Iraq, Thailand, Morocco, Mexico and Central America.
The settlement. Harbert says career State Department officials agreed in September 2025 to a $370 million settlement, but the government paid just $501,636 before backing out. The company alleges political leadership "inserted themselves into the process after a settlement was reached" and that the decision "came from the top." It says State's chief of staff encouraged it to certify its claims in March 2026, and contracting officers began denying them in July. All 13 certified claims had final decisions by Oct. 13.
The pandemic dispute. In early 2020, Harbert was working on 17 embassy and consulate projects, nearly two-thirds of State's program at the time. The company says State told it to stay ready to mobilize, keep buying and shipping materials, and document the extra costs for reimbursement, even as it argued the pandemic was an "excusable delay." Harbert says it submitted more than $500 million in claims. Labor costs in Guatemala City alone ran about $1.3 million a month, the filing says.
Why it matters. Harbert says only two or three qualified bidders now compete for some embassy projects, and fewer may step up if contractors doubt State will keep its word. The suit does not ask the court to enforce the $370 million settlement itself.
Note for readers: these are the company's allegations in a complaint. Fox says it asked the State Department for comment. The dispute began with directives in Trump's first term and continued through the Biden administration.