Potter County staff told the commissioners' court they are withholding $187,008.54 from the July pay request submitted by general contractor Oak Rex for the county booking-room project, citing incomplete HVAC and plumbing punch-list items and disputed test-and-balance results.

County construction staff said the architect-certified pay application arrived filled out at 100 percent but lacked the required revisions and signatures after the county flagged outstanding HVAC work. The staff member said the contractor chose not to revise the request when asked and that the county is currently holding roughly $480,000 tied to the project. “I would not approve it,” the staff member told the court.

Why it matters: the booking-room project is funded with ARPA money, the staff member warned, and delays risk jeopardizing ARPA reimbursement. The staff member also said the project team will begin liquidated-damage assessments of $500 per day starting Aug. 21 unless the commissioners direct the county attorney to issue formal notice to the contractor.

Project history and outstanding issues: staff said an initial test-and-balance firm tested the wrong equipment and that subsequent testing raised concerns about 30‑year‑old ductwork leaking air. County maintenance staff agreed the ductwork is likely leaking and the sheriff’s department has elected to seal joints; the county can also hire an independent test-and-balance provider to verify results. Staff also said an additional plumbing issue found on final punch forced potential demolition of recently placed floor slab in at least one cell before re‑inspection.

Financial context and next steps: the inspector said Oak Rex had the opportunity to revise the pay application and hold only about $20,000 pending HVAC completion but elected not to do so and instead resubmitted an unchanged request to other county staff. The county project inspector told the court that enforcement of liquidated damages requires the court to direct the county attorney to send the contract notice and to document the county’s demonstrated burden caused by the delay (overtime, per diem, inspector travel). The inspector said he will begin calculating potential liquidated damages and will hand further correspondence to Capt. Jeremy Fraser of the sheriff’s office.

Court action requested: staff requested that the commissioners direct the county attorney to send notice to Oak Rex starting liquidated damages on Aug. 21 and to authorize the county to engage its own test‑and‑balance company if needed. The court did not record a final formal vote on that direction during the exchange captured in the transcript.

Background: county staff said the contractor’s July pay request was certified by an architect (John Ross) but lacked a revised conditional waiver and proper signoffs for incomplete work. The inspector said the project manager listed on earlier submittals, Mr. Harper, is no longer with Oak Rex and that the contractor now faces liquidated-damage exposure if the schedule is not met.

What’s next: staff said they will present a formal notice draft for the county attorney’s review and recommended the court decide whether to authorize enforcement and any independent testing. The transcript does not show a final court vote or an issued legal notice at the time of the meeting.