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Mercer County approves $518,315 engineer pay estimate for chip-seal project; warranty and liquidated-damage holdbacks remain

5948786 · October 15, 2025
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Summary

Commissioners approved the engineer-recommended payment for a chip-seal contract that county engineers say is complete pending final striping. The board discussed a 10% retainage, a warranty review next spring and liquidated damages now totaling 16 days.

Mercer County commissioners voted to approve the engineer-recommended pay estimate of $518,315.59 for a county chip-seal project, while keeping retainage and liquidated-damage deductions in place.

The payment covers work through Sept. 16 and reflects progress on a contract that county staff and the project engineer say is substantially complete. “The contract amount is 824,000, and it'll be slightly above that based on estimated quantities,” Tom said while updating the commission on the project. Tom also said the contractor had finished pavement marking as of the night before the meeting.

The board discussed project-specific quality issues and contract protections. Tom described the contract’s warranty arrangement: a controlled 1,000-foot test strip will be evaluated in May against the rest of the work and corrective items will be fixed then. “The chip seal's a little different on this one because it is a warranty type period,” Tom said. He added the county withholds 10% retainage from the contract until the warranty review in May.

County staff told commissioners $58,000 of the current payment is retainage; when combined with other withholdings the county expects to hold about $83,000 until the project is finally accepted. Commissioners also heard that liquidated damages—initially recorded as three days—now total 16 days and that those damages will be deducted from payments rather than held in retainage.

Commissioners discussed surface issues raised by residents and staff, including transverse cracking and “washboard” texture that can make driving feel rougher even after an overlay. Tom said crews had marked observed defects and the contractor had corrected about 15 spots in follow-up work.

After discussion, the board approved the engineer’s pay estimate. Commissioners noted the county will continue to withhold retainage and monitor the warranty period; liquidated damages will be applied against payments per the contract terms.

The county's engineering staff and the contractor will return in May to review the test strip and any areas requiring correction under the warranty.