Council consents to assignment of 2024 pavement rehab contract after original bidder says it cannot meet timing

City Attorney Travis Jacot told the Fremont City Council on June 11, 2024, that the contractor originally awarded the city’s 2024 pavement rehabilitation contract, Pave LLC, indicated it could not meet the contract’s required timing. Jacot said CRM Concrete LLC has agreed "to step in the shoes of Pave LLC and complete the project, including to be bound by the terms of the contract," and that the assignee had obtained a bond and insurance.

"Pave LLC had indicated that they didn't believe they can comply with the contract, specifically the timing that it would take to get it done," Jacot said while presenting the consent-to-assignment item. He told the council he was comfortable with CRM Concrete as the assignee based on the bond and insurance documentation.

Councilman Sukram moved to approve the consent to assignment of the 2024 pavement rehab contract to CRM Concrete LLC; Councilwoman Gannon seconded. The council voted 6-0 to approve the substitution.

Why it matters: substituting an assignee for a construction contract can affect project timing and contractor performance. City staff recorded that CRM Concrete had provided the required bond and insurance before the council’s approval; the council directed staff to proceed under the original contract terms now assumed by CRM Concrete. The public record did not include contract dollar amounts or a revised project schedule; the council’s action authorizes staff to move forward under the existing contract and shifts responsibility for meeting the contract terms to CRM Concrete.

Next step: Public Works/Engineering should confirm start dates and contractor schedule with CRM Concrete and report back to council if the schedule or scope changes.