City Council approves $245,839 judgment payment in Construction Enterprises lawsuit over PAC renovations

The Tulsa City Council approved on April 16 a resolution authorizing payment of $245,839.08 to Construction Enterprises Inc. to settle a judgment stemming from construction disputes on lobby and renovation work at the Tulsa Performing Arts Center.

City legal staff described the matter as a construction‑defect and payment dispute that involved the prime contractor, their surety, subcontractors and the city. Legal and Public Works staff said the project stalled amid workmanship concerns and unpaid subcontractor claims; the parties entered mediation and an independent architect completed a review of completed work and outstanding punch‑list items.

City Treasury reported that a sinking‑fund cash balance was sufficient to make an advance payment and to handle internal accounting to spread repayment over three years. Public Works staff told the council they had withheld some contract payments during the dispute and that mediation resolved the competing claims to a single settlement figure. Public Works said project funds remain available to complete the original scope and that the settlement primarily resolved competing claims and subcontractor payment issues.

Public comment and several councilors emphasized a desire for clarity on remaining construction work and for protections to ensure final completion: staff said remaining construction will be incorporated into other contracted projects or handled through a separate procurement process and that the city will advertise and bid remaining work where required.

Councilors approved the resolution and staff said the payment would be issued from the sinking fund and processed to accounting for a three‑year repayment arrangement.