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Victory Forest Community Center project stopped

Posted April 17, 2017

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Construction on the new Victory Forest Community Center, at the intersection of Hemphill and East Biddison streets, has been halted because the prime contractor failed to make payments due to subcontractors.

This nonpayment to 24 subcontractors estimated at approximately $1.6 million has resulted in the city terminating the contract with the general contractor and making a claim to the contractor’s bonding company on the performance bond on March 8, 2017.

Since then, city staff, the bonding company and its construction consultant has inspected the project, and the bonding company is completing its due diligence and investigation of the claim made by the city.

The city is pursuing liquidated damages that began to accrue on Feb. 16, 2017, because the contractor failed to meet the Feb. 15 project completion date.

Once the bonding company notifies the city of acceptance of the performance bond claim, discussions on project completion will occur. Until then, the project completion timeline is uncertain.

Currently, the center is 80 percent complete, and staff estimates it will take about three months to complete the project once construction resumes.

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City Plan Commission Work Session: noon July 26, 2017; City Council Conference Room 290, 200 Texas Street, 2nd Floor - City Hall.
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