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Victory Forest project stopped after subcontractors claim payments are due from prime contractor

Posted Feb. 21, 2017

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The Victory Forest Community Center project is at the intersection of Hemphill Street and East Biddison Street in Council District 9.

Construction on the new Victory Forest Community Center is 80 percent complete, but work has been halted because the prime contractor has failed to make payments due to subcontractors.

The construction contract was awarded Jan. 20, 2016, to C. Perry Builders Inc., a company that has been in the commercial construction business for 41 years. The total construction contract amount is $5.3 million, with a contract completion date of Feb. 15, 2017.

The city has been notified by 21 subcontractors and suppliers that C. Perry Builders has failed to make payments due under the subcontracts. The estimated value of these unpaid claims is approximately $1.5 million.

The city has moved forward to act on the payment and performance bond that was required on the project. The bonding company, Hudson Insurance Co., is legally and financially responsible for settling payment disputes between the prime contractor and subcontractors, and taking over completion of the project if necessary. The city has made a demand to Hudson Insurance to pay the subcontractors and suppliers.

The legal process to terminate the contract and require Hudson Insurance to complete the project has begun, and city staff has put C. Perry Builders and Hudson Insurance on notice that the city will pursue liquidated damages that began to accrue once the Feb. 15 completion date was missed.

Due to the potential for a protracted legal process, it’s difficult to provide an exact timeline for project completion. Based on the current stage of construction, it will take about three months to complete once work resumes at full capacity.

The city is making every effort to expedite delivery of this highly anticipated addition to the community. Ongoing updates on the project’s status will be provided as the situation changes. City staff will also provide updates to the community and neighborhoods impacted by the delay.

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