Flora council approves Division B credit, waives liquidated damages to secure railroad work

The Town Council of Flora on Nov. 3 approved a change order that credits the town $45,287 and waives liquidated damages through Dec. 31, 2025 in return for the contractor completing a railroad segment at no additional cost.

Council members debated a settlement strategy for a long-running dispute over liquidated damages (LDS), which staff said amount to roughly $200,000 tied to missed milestones. Commonwealth project staff told the council the contractor offered to perform the railroad segment—estimated between $43,000 and $52,000 in value—at no charge if the town would forgo assessing existing LDS and pause any new LDS through the end of the year.

"I think this is a path forward right now given the circumstances that I do think is a good win for the owner in terms of getting an important segment done for free at no additional cost," a Commonwealth representative said during the discussion.

Council members raised questions about whether the contractor could later seek additional payment for the park work and asked staff to confirm whether portions of the park work had already been covered by prior change orders. Commonwealth staff said documentation will be required and that any valid prior approvals would be checked before further charges are accepted.

The motion to approve Change Order No. 3 for Division B—the credit plus the temporary waiver of LDS—was moved, seconded and carried. Staff said the waiver covers disputes that existed up to the council meeting and any further discussion of liquidated damages would resume if the project remained incomplete after Dec. 31, 2025.

What happens next: staff will circulate the executed amendment to Commonwealth for construction engineering and continue to inspect and test the railroad segment work once performed; the council’s approval effectively extends the contract timeline through Dec. 31, 2025 under the conditions described by staff.