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Madison commission directs staff to negotiate liquidated‑damages with J & J Earthworks after multi‑year road projects
Summary
After staff presented potential liquidated‑damage totals for two related construction contracts, the Madison commission voted to have city staff and project leads negotiate a settlement with J & J Earthworks and return with a dollar figure at a future meeting.
The Madison commission on Tuesday instructed city staff to negotiate with J & J Earthworks over liquidated damages for two connected public‑works contracts and to return to the commission with a proposed dollar assessment.
City project manager Ryan (staff) told the commission that Phase 1A accumulated about 135 potential working days beyond its contract final completion date as of May 16, 2024 — a figure staff presented as equating to about $108,000 in liquidated damages — and that an additional direct city cost for addressing unfinished items was about $6,200. For Phase 1B staff presented multiple interval counts, including a 43‑day window presented as $73,100 and other windows that produced totals such as $82,450 and $10,200 for specific periods. Staff framed three options for the commission: change the contract dates (which would eliminate liquidated damages), assess liquidated damages based on the accumulated working days, or attempt to recoup additional direct costs incurred by the city.
Tom Paulson, director of operations for J & J Earthworks, told the commission the projects “turned into a lot longer than we anticipated,” and asked the city to negotiate in good faith rather than apply the full assessed amount. Paulson said the contractor encountered design questions, subcontractor failures and supply issues and that the company accepted overall contractual responsibility while arguing some delays and costs stemmed from design and specification issues.
Commissioners pressed for a compromise. One commissioner said the staff’s high‑end damage estimate “seems very excessive,” while other commissioners emphasized real costs to taxpayers and disrupted use for residents during the extended construction timeline. Several commissioners recommended a split approach: document the city’s actual out‑of‑pocket costs, then negotiate a reduced liquidated‑damages figure with the contractor and the project engineer.
The commission approved a motion directing the city administration and staff to quantify the city’s verifiable costs, negotiate with J & J Earthworks (and relevant engineers/consultants), and bring a recommended dollar figure back to the commission at a future meeting. The motion passed by voice vote.
What happens next: Staff said it will calculate the city’s actual costs, continue negotiations with J & J and the engineer, and return to the commission with a proposed assessment or settlement for a formal vote.
