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Pelicano widening stalled by contractor bankruptcy, trustee claims; RMA approves John Hayes water connection change order subject to El Paso Water sign‑off
Summary
The Pelicano widening project is stalled after contractor JAR Construction defaulted, filed bankruptcy and had the case converted to Chapter 7; the RMA reported the surety controls federal funds and the board approved a change order for the John Hayes project not to exceed $296,202 subject to El Paso Water review.
The Camino Real Regional Mobility Authority told its board on April 9 that construction on the Pelicano widening project remains stalled after the prime contractor defaulted, filed for bankruptcy and had its case converted to Chapter 7, leaving the project roughly 50% complete and federal project funds controlled by the contractor—s surety.
Executive Director Raymond Theis said the contract with JAR Construction was executed in March 2020 with a revised completion date in July 2022. The RMA defaulted the contractor in December 2022 and asserted a claim against the contractor—s performance bond. JAR initially contested the default and in March 2023 filed for Chapter 11 bankruptcy; the case was converted to Chapter 7 in September 2023 and a trustee later reasserted claims totaling roughly $26 million, Theis said.
"The wrongful default claim is what has stalled out the surety," Theis told the board, summarizing filings and court actions that are publicly available. He said…
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