A state appeals court has reinstated a contractor’s bid for roughly $2.5 million in damages against the entity responsible for building schools in New York City in a case regarding disputes over cost overruns for projects in Brooklyn and Queens.

In 2001, contractor AMCC Corp. entered into two design-build contracts with the New York City School Construction Authority to build a school in Queens with a $32.7 million base price and a school in Brooklyn with a $42.8 million base price.