Hillsborough presses contractor on delayed daycare project; state holding funds and city warns of liquidated damages

City staff reported July 15 that the city-supported day care project has experienced construction problems, prompting state review and a CDBG extension; the city said it will seek liquidated damages if the contractor fails to meet a firm completion deadline.

Matt Stiles told council the contractor, Weems and Company, had to redo drainage and entry work after CDBG and city intervention. Stiles said the state is withholding about $300,000 of project payments pending satisfactory completion and that the city’s "final drop-dead deadline" is Friday at 5 p.m. If the contractor fails to achieve completion, staff said the city intends to pursue liquidated damages under the contract at $500 per day and may retroactively apply those damages to the date of substantial completion.

Council members, including the chair and Councilman Jorgensen, said families and staff have been inconvenienced and that city leaders had pressed the contractor and architect to prioritize the project. The chair told the room he had toured the building and said, "we are not gonna have any employee working for the city of Hillsborough that is working in an unsafe environment from a health standpoint." Stiles added that some families are using interim private care arrangements and that staff have been keeping workers occupied with cleaning and preparation while completion is pending.

The council said it would hold the contractor accountable and directed staff to proceed with contractual remedies if the project is not finished by the stated deadline. Staff said inspections by KDHE are scheduled on the deadline and that the daycare board and state will determine the timetable for licensing.