Contractor issues delay public safety bldg.

HUTCHINS – If you have driven by the new digs for the city of Hutchins public safety building at the corner of Palestine and Den-ton Streets, you know work has halted on that project.

According to Hutchins Mayor Mario Vasquez, the contractor originally brought in to do the job, Denco Construction, walked off the job around Thanksgiving. Vasquez said the entire ordeal came about because of “lots of issues.”

According to the mayor and Hutchins City Manager Trudy Lewis, “Denco began preliminary construction work in the summer and started construction in the fall.”

In early December, Denco Construction terminated the agreement due to an inability to complete the work as contracted.

While Lewis said the company properly and promptly provided notice to the city of Hutchins of their issue, Mayor Vasquez said the city had been alerted to the problem with Denco Construction by a subcontractor. The subcontractor said he had not been paid.

When it was determined Denco Construction was not going to be able to finish the job, Philadelphia Insurance Company (PIC) provided both the payment and performance bond for the contract.

Vasquez said the insurance company stepped in and is now putting out bids to replace the former construction company.

“We have lost no money,” Vasquez said.

Lewis elaborated, “In compliance with the terms of the required performance bond, PIC will cover any shortfall from the old contract to the new contract. For example, if a new contractor will require a payment of $7 million to complete the building, PIC will pay for the difference between that amount and the $5.5 million contract that the city of Hutchins had with Denco. The city of Hutchins is not losing any money on the project because all necessary insurance guidelines were followed by Denco based on our contract with them.”

The payment bond also allows any subcontractors that Denco hired who have any financial claims to file it with PIC. As well, the performance bond requires the insurance company manage the contract in the event of a non-performance. As a result, PIC is issuing a new Request for Proposals for contractors to take on the job from the current status until completion.

PIC is also said to be interested in retaining as many subcontractors who initially were hired by Denco as possible to continue the progress quickly.

The public safety building bid was publicly advertised in early 2019 including a pre-bid conference and a public bid opening. At that time, Denco Construction was awarded the contract.

The new public safety building is a roughly $6.5 million project. It is an 18,200-square-feet building, and when complete will house the police and fire departments as well as code enforcement and animal control.

“We anticipate the new contract being completed by April, with construction back underway soon thereafter,” Lewis said.

The building was scheduled to be complete in March of this year. Vasquez said the city believes now the building will be complete in about eight to nine months.

Meanwhile, staff provides presentations to the city council and public about the public safety building status the second council meeting of each month. The presentation includes all funds paid to date, photos of the site, percentage of contract completion, progress made over the last 30 days, and any questions from the council and public.