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February 12, 2014

RWMH contractor returns funds for deadline overrun

Commissioners in return OK payment of $298K to company to settle claim

By JUDY SHERIDAN

Parker County commissioners Monday approved a $22,000 payment from Jay Mills Construction Company for damages related to the company failing to meet a construction deadline for the Ric Williamson Memorial Highway.

With the company’s return of funds to the county, commissioners authorized releasing about $298,000 in funds to the company, which have been held back since September, according to David Payne, Freese and Nichols Parker County Transportation Bond construction manager.

The payment settled a damage claim based on construction schedule delays for the RWMH from U.S. Highway 180 to the Interstate 20 interchange, completed Aug. 20, 2013, instead of June 4, 2013.

The actual contractual damages added up to about $19,000, Payne said, somewhat less than the amount awarded.

 “I recommend you accept this value of $22,000, release the retainage that we are still holding at this time for $320,124.12 — minus the $22,000 — which ends up to be $298,124.12,” he said.

“At this time I do want to stress that this project is still on schedule, the total project — the bond program — is still under budget — and these liquidated damages had no impact or bearing on the schedule or the budget of this bond program.”

Payne said the project’s notice to proceed was received Jan. 17, 2012, with substantial completion set for a year later, on Jan. 17, 2013.

Utility issues, however, weren’t resolved until June 4, 2012, he said, despite the expectation that they would be settled quickly.

“Per agreement with the contractor, we had lost days and added those back on to the contract,” he said, “so our new substantial completion date was going to be June 4, 2013.

“Actual substantial completion by the contractor was July 10,” he said, “which was a month and six days after June 4, the new substantial completion date. We’ve determined that during this time there were some actual damages for construction management purposes for the extended period for $9,405.40.

“The total actual damages for final completion after they had done their punch items and completed all work — the date for that is Aug. 20. The damages during that total time was $4,685.46, which brings the total — from June 4 up to Aug. 20 — to $14,090.86.”

In addition, Payne said, a $5,000 penalty was assessed because contractors also overran a one-year contract for work in the road’s right-of-way that required access to private property.

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