Title
SE 4th Street Reconstruction Completion Agreement (Williston Road to Depot Avenue) (B)
Explanation
This item is a request to enter into an Agreement with Western Surety Company for the completion of the SE 4th Street Reconstruction project from Williston Road to Depot Avenue.
On January 12, 2018, the City entered into an Agreement with DAB Constructors, Inc. (DAB) for the reconstruction of SE 4th St in the amount of $5,010,328.88. The contractor failed to furnish adequate resources to complete the project in a timely manner and entered into liquated damages; ultimately DAB abandoned the project and filed for bankruptcy in July 2021. The City holds a Performance Bond with Western Surety Company (WSC) supplied by DAB in accordance with the original construction Agreement. WSC is obligated to complete the project in accordance with the original plans and specifications at a price not-to-exceed the balance of the DAB agreement. The balance on the DAB agreement is approximately $1.5 million, which will be paid to WSC, plus any required change orders less liquated damages ($2,811 each and every calendar day) and any cost borne by the City such as legal fees and interim site maintenance.
WSC has hired a vendor to assist with procurement of a new contractor and is committed to completing the project as quickly as possible to minimize the liquated damages that will be assessed. However, no completion timeline is available at this time as WSC is in process of negotiating an agreement with the new contractor.
The SE 4th St Reconstruction project consists of a new pavement & drainage system, new sidewalks & cycle tracks on both sides of the roadway, traffic-claiming at the Gainesville/Hawthorne Trail crossing, a new box culvert bridge at Sweetwater Branch Creek, two stormwater treatment ponds for flood control and water quality treatment, undergrounding of overhead utilities and roadway & pedestrian scale lighting. The left side of the roadway, final li...
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