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Contractor delays, alleged equipment sabotage stall Highway 20 overlay; city cites large liquidated damages
Summary
Pryor Creek officials said work on the Highway 20 overlay has been repeatedly delayed by contractor performance problems, weather and equipment sabotage. City staff say the contractor now faces daily liquidated damages and that the city may pursue bonds or rebidding if work is not finished before a major city event.
City staff told the Pryor Creek City Council that the contractor hired to complete the Highway 20 overlay has repeatedly failed to meet the contract schedule and that sabotage of contractor equipment has created additional delays.
The city said the contract specified an April 3 completion date and that the contractor would owe $500 per day in liquidated damages after that date. “I think when we added it up, we’re somewhere in the neighborhood of $3,035,000 dollars already that they owe us on top of that,” a city staff member said during the meeting. Staff said those sums reflect the daily damages multiplied across the project’s extended schedule.
Why it matters: the unfinished overlay affects traffic, safety and other city projects timed to be completed before public events. City staff said the unresolved work and an apparent fuel contamination incident stored on city property are creating environmental and public-safety concerns ahead of FreedomFest and other summer activities.
City account of delays and sabotage City staff described a sequence of contractor-related problems: missed start dates, reliance on weather-day allowances, claims of missing materials or oil, staff redirected to other projects and, most recently, an incident at the soccer complex where contractor equipment that runs on diesel was found to have gasoline in the tanks. The city said the subcontractor companies within the contracting team have split, and that one party has accused the other of intentionally contaminating equipment. The staff member said the vehicles and equipment remain on city property and that an oil truck at the site was observed leaking; city crews had placed a temporary cap and bucket as an interim measure.
The city said it has an engineer on site every day and that Infrastructure Solutions (Michael, an engineer contracted by the city) is documenting temperatures, compaction and repairs. “Everyday, Dale with infrastructure and I have been talking on the phone… Every day,” the same city staff member said. Staff said they have sent the contractor notices, including a seven-day demand letter, and that legal counsel has been engaged.
Possible remedies and next steps City staff told the council they are pursuing multiple remedies: continued on-site monitoring, written notices, discussion with the contractor’s bonding company and the option to terminate and rebid the work if the contractor cannot complete it satisfactorily. Staff said rebidding the unfinished portions and pursuing the contractor’s bond remain live options if deficiencies are not corrected quickly.
Environmental and event timing concerns Council members and staff flagged environmental cleanup and public-safety issues. The staff member said contamination and an oil leak on the contractor’s equipment required immediate remediation and that the city would not tolerate hazardous material on the site given an upcoming fireworks event. “We have FreedomFest in less than four weeks, and it has to be done,” the staff member said. The council pressed staff to ensure the equipment is removed and the site remediated promptly.
Monitoring and quality control City representatives emphasized that the city’s engineer is monitoring workmanship and that defective areas have been reworked to meet contract standards. The staff member said infrastructure staff are documenting repairs and that photographic evidence and testing are being kept on file to support any future claims.
No council vote required The council discussion produced no formal motion on the overlay itself during this meeting; staff said they would continue legal and contract actions and report back. Staff asked council members and the public to be patient while the city follows the contract remedies and bonding processes.
Lasting implications City staff said the episode underscores the risks of contractor selection and the cost of project delays. They briefed council members on possible legal steps, including rebidding and pursuing the contractor’s bond, and asked for continued support as they finalize next steps.
