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in the contract, the Authority has withheld “liquidated damages” for failure to meet the completion date. That figure now stands at $25,500 and covers damages through February 5. (The per day assessment is $500.)
Perry Engineering takes the position that the WSA has not been damaged since the rest of the sewer system was not functional at the deadline for completion of the treatment plant’s construction. The engineering company has asked for a change order which would extend the completion deadline by an additional 61 days. If the WSA approved the change order, it would result in the refund of the $25,500 withheld to date and no further assessment of damages past February 5.
“The Authority has difficulty in granting a change order if there’s not a reason for it other than the work just wasn’t done,” Mr. Woodard noted.
With federal and state grant money involved, “there does have to be a basis for a change order (permitting a later completion date),” Mr. Baumgardner agreed. “What was the date of substantial completion (of Perry Engineering’s work on the sewage treatment plant)? That’s what the Authority must determine.”
Mr. Baumgardner later reported that no action was taken on the change order request during the WSA’s executive session last Thursday.
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