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Contractor misses chip-seal deadline; Lawrence County approves amendment and liquidated-damages approach
Summary
After the awarded chip-seal contractor failed to start and missed the substantial-completion window, the county approved an amendment allowing the contractor to complete the work next season under new dates and liquidated-damages enforcement instead of immediate rebid or bond pursuit.
Lawrence County's highway superintendent told commissioners that the contractor awarded the county's chip-seal project (Aztec, Minnesota) did not begin work this year and missed the substantial-completion deadline, making chip-seal impractical with current weather. The superintendent recommended amending the contract to give the firm a start date next season and enforce liquidated damages.
Commission discussion centered on remedies and likely financial effects. The superintendent said the contractor is already subject to liquidated damages at $500 per day and estimated the company's self-requested extension could produce about $10,000–$14,000 in assessed liquidated damages for the delays under one scenario, while the project value at issue could be approximately $557,000 if rolled into next year's budget. Commissioners said rebidding or pursuing the contractor's bond was an option but likely slower and potentially more expensive. The board voted to authorize an amended agreement with specific start and finish dates, allow the chair to sign the amendment consistent with conditions discussed, and to charge liquidated damages from the agreed start date if the contractor again failed to meet deadlines.
Highway staff noted Aztec told county staff it had too many other projects and experienced delays elsewhere. The county will monitor the contractor's compliance and apply penalties if necessary.
