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Commission delays decision on liquidated-damages waiver for Artunio housing project; contractor seeks relief after delays
Summary
City staff and the contractor for the Artunio Housing Addition discussed a request to waive contract liquidated damages after schedule delays tied to change orders, permitting and tax-exempt processing. Commissioners asked for more documentation and agreed to carry the item to the next meeting for further research.
The commission took no action and agreed to revisit a contractor request for waiver of liquidated damages tied to the Artunio Housing Addition project.
City staff presented the contract and explained a discrepancy between the bid-documented contract time and the signed agreement: the bid listed 210 calendar days but the signed contract listed 240 days. Engineers had recorded 22 weather days; combining those with the 240 contractual days reached 262 days, which staff said the contractor had now hit. The contract calls for liquidated damages of $800 per day for each calendar day exceeding the contract time.
Edgar Artugno of OC Quality Custom Homes LLC described multiple causes for delay: weather, change orders that were submitted in November but not approved until late January (81 calendar days), a roughly 45‑day delay obtaining a tax‑exempt form and outstanding FEMA/KDHE permits needed before building on certain lots. Artugno said crews had increased overtime and that utilities work was nearly complete (about 98%) and estimated three to four weeks remaining to finish on-site work if weather permits.
Commission discussion focused on documentation and fairness. City staff said original project communications were incomplete during an administrative transition and recommended further review. The city manager reported that the tax-exempt approval date appeared to be Sept. 23, 2024, and that the project had made substantial progress in the last three weeks. Staff also reported the project may finish under the approved budget by roughly $50,000–$60,000.
Commissioners requested additional documentary evidence (date-stamped filings and approvals, change-order timelines and engineer notes) before deciding whether to waive liquidated damages or extend the contract time. The item was tabled for the next meeting so staff can gather records and present a recommendation; no waiver or extension was approved at the May meeting.
