HomeMy WebLinkAbout1995-01-23 95-82 ORDERCOUNCIL ACTION
Item No.95-82
Date January 23 1995
Item/Subject: Authorizing City Manager to Accept Settlement of City
of Bangor Wastewater Treatment Plant Claim -- Liquidated Damages
for Late Project Completion
Responsible Department: Legal
In February, 1993 The Holden Company, a subcontractor on the City
of Bangor's wastewater secondary treatment plant project, became
insolvent, and defaulted its subcontract. The company later filed
for bankruptcy liquidation under chapter 9 of the federal bank-
ruptcy statute. As a result, a small amount Of the original
contract work on this project ($29,585.00) remained incomplete a
of the June 30, 1993 scheduled project completion date. The work
concerned s
w not completed until September 20, 1993. Due to the
late projectfinish, which required the City to extend its
supervision of the project by an additional 68 project days', the
City's Engineering Department incurred a estimated $19,000.00 in
additional personnel costs. The attached Council Order would
authorize acceptance of a settlement offer from Connecticut
Indemnity Company and Harvey Construction Company, which would
reimburse the City's additional costs.
Department Head
Manager's Comments: A,¢ '7%llJ �rl(1�LM1lap*X UJLIYI
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—Finance —Director
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Introdu �d For C& wxT-
=� Passage
First Reading
Referral Page i of 2
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City
Manager
Associated Information:
Order
—Finance —Director
cies Spttor4
Introdu �d For C& wxT-
=� Passage
First Reading
Referral Page i of 2
95-82
Anigeedm Cmuncilor Tyler Jauvary 23, 1995
CITY OF BANGOR
(TITLE.) Wrbtr, _... Authorizing City Manager to Accept settlement
of City of Bangor Wastewater Treatment Plant Claim -- Liquidated
Damages for Late Project Completion
BY He Qh Cm 1of Ae Cft of Ransom
TEAT the City Manager is hereby authorized on behalf of
the City of Bangor to execute all releases and other documents
necessary to accept a $19,000.00 settlement of the City of Bangor's
claims against Harvey Construction Company and Connecticut
Indemnity Company as performance bond surety for The Holden
Company, arising out of the late completion of the City's
wastewater secondary treatment plant project. All releases and
other documents executed by the City of Bangor shall be in a form
approved by the City Solicitor.
95-82
IN CITY COUNCIL 0 R D E R
January 23, 1995
Passed Title, t
Autfioilzln .C1 y Nan d Accept Settlement
CITY CL£ Of City of&Bangui iVesLeve[eiTxee[men[ Plant
Claim - Liquidated Damages for Late Project
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