Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Infrastructure Contracts topic
No spam. Unsubscribe anytime.
Vermillion approves settlement and contract changes for delayed Tom Street lift station
Summary
The Vermillion City Council approved change order No. 2 and accepted a negotiated liquidated-damages settlement with contractor H&W, reducing the previously tracked $812,700 in penalties to $299,700 and lowering the final construction cost to about $1.22 million; council also approved a $52,622 engineering amendment with Banner Associates.
Vermillion city staff told the City Council on April 6 that the Tom Street lift station replacement project, originally awarded to H&W Contracting for $1,553,066.45, missed its June 1, 2024 substantial-completion date and did not reach substantial completion until Jan. 21, 2026.
Shane, the city—s project presenter, said the city had tracked 602 days of liquidated damages at $1,350 per day (totaling $812,700), and that H&W agreed to settle those damages for $299,700. "H&W agreed to settle the liquidated damages in the amount of $299,700," Shane told the council. He said change orders one and two netted a deduction of about $38,325.52, bringing the combined construction cost to $1,218,756.69 and that pay application No. 4 ($330,987.77) would be paid only if council approved the change order.
Council members discussed contractor performance during the meeting; one councilor said the contractor appeared stretched thin on multiple projects and that communications had been difficult, noting repeated calls and emails that went unanswered. Council approved the motion to accept change order No. 2 and the LD settlement.
Banner Associates presented amendment No. 3 to its engineering agreement for the project, citing additional services tied to the delays. The amendment adds $52,622, increasing the engineering contract to $235,944.30. Staff said the negotiated liquidated-damages settlement is sufficient to cover the additional engineering costs and that the 2026 budget will require a revision to fund the final contract amounts. The council approved the engineering amendment by motion.
The city record shows $742,689.73 already paid to H&W; staff said final acceptance and the final pay application are anticipated on the April 20 agenda.
What happens next: administration said it will bring the final pay application and acceptance to the April 20 meeting, and that staff will complete remaining punch-list items before final closeout.
