By Joe Parker Jr.
and John Deike
For the Coastal Courier (Hinesville, GA)
jparkerjr@coastalcourier.com
A gnarled mishmash of circumstances has put work for the extension of Frank Cochran Drive in indefinite postponement
“It’s unabashedly a mess,” said David Spear, assistant administrator of external communications for the Georgia DOT, describing the default of Douglas Asphalt Co. on 17 highway projects (including Frank Cochran) worth $338 million around the state.
“We’re going to soldier on as best we can,” Spear said.
The largest of the projects is an eight-mile widening of I-95 in Liberty and McIntosh counties. That contract was for $55.2 million.
That project - like Frank Cochran - has no new contractor at work. It is 70 percent complete.
Frank Cochran is roughly three-quarters complete as well, Hinesville City Manager Billy Edwards said. The $4.6 million, mile-long project started about four years ago.
However, since Douglas Asphalt improperly built some of the road, the new contractor will have to backtrack and repair it before the construction can progress forward, he added.
Spear explained that when a construction company defaults on a DOT contract, its surety bondholder must make good on the obligation. In the case of Douglas, Arch Insurance holds the bond.
In many cases this is a financial matter in which the surety can pay the contractors’ bills and arrange for them to resume work on the project. But that was not the case with Douglas, which was so far behind on so many state projects that it was removed from the DOT list of approved contractors, and Arch was forced to look for other contractors to complete work begun by Douglas.
Mario Chiappetti, a representative from Arch, was willing only to divulge the following statement, “Arch Insurance Group is committed to resolving all valid and properly documented and submitted claims, although we cannot comment with respect to any particular loss or claim. Arch endeavors to resolve all open issues in a timely, fair and reasonable manner, and honors all of its obligations under the terms of payment and performance bonds.”
“They’re having a hard time,” Spear said.
Contractors have been located to take over projects in Tattnall, Bulloch and Candler counties, he said, but others remain orphaned. Those include Frank Cochran and the Liberty/McIntosh I-95 widening.
Douglas projects in Fulton and Turner counties are still the subject of lawsuits.
The ultimate penalty for default is payment by the surety of 120 percent of the contract amount. This seldom happens because of the cost, contractors and their sureties don’t like to walk away from incomplete projects, and it takes the DOT “back to square one” in finding a contractor to complete the work, he said.
“We have no idea when Arch will get back to us about (Frank Cochran),” DOT communications specialist Sherry Beal said. “Arch said that it would take about six weeks to find another contractor, but they made that claim about 12 weeks ago.”
and John Deike
For the Coastal Courier (Hinesville, GA)
jparkerjr@coastalcourier.com
A gnarled mishmash of circumstances has put work for the extension of Frank Cochran Drive in indefinite postponement
“It’s unabashedly a mess,” said David Spear, assistant administrator of external communications for the Georgia DOT, describing the default of Douglas Asphalt Co. on 17 highway projects (including Frank Cochran) worth $338 million around the state.
“We’re going to soldier on as best we can,” Spear said.
The largest of the projects is an eight-mile widening of I-95 in Liberty and McIntosh counties. That contract was for $55.2 million.
That project - like Frank Cochran - has no new contractor at work. It is 70 percent complete.
Frank Cochran is roughly three-quarters complete as well, Hinesville City Manager Billy Edwards said. The $4.6 million, mile-long project started about four years ago.
However, since Douglas Asphalt improperly built some of the road, the new contractor will have to backtrack and repair it before the construction can progress forward, he added.
Spear explained that when a construction company defaults on a DOT contract, its surety bondholder must make good on the obligation. In the case of Douglas, Arch Insurance holds the bond.
In many cases this is a financial matter in which the surety can pay the contractors’ bills and arrange for them to resume work on the project. But that was not the case with Douglas, which was so far behind on so many state projects that it was removed from the DOT list of approved contractors, and Arch was forced to look for other contractors to complete work begun by Douglas.
Mario Chiappetti, a representative from Arch, was willing only to divulge the following statement, “Arch Insurance Group is committed to resolving all valid and properly documented and submitted claims, although we cannot comment with respect to any particular loss or claim. Arch endeavors to resolve all open issues in a timely, fair and reasonable manner, and honors all of its obligations under the terms of payment and performance bonds.”
“They’re having a hard time,” Spear said.
Contractors have been located to take over projects in Tattnall, Bulloch and Candler counties, he said, but others remain orphaned. Those include Frank Cochran and the Liberty/McIntosh I-95 widening.
Douglas projects in Fulton and Turner counties are still the subject of lawsuits.
The ultimate penalty for default is payment by the surety of 120 percent of the contract amount. This seldom happens because of the cost, contractors and their sureties don’t like to walk away from incomplete projects, and it takes the DOT “back to square one” in finding a contractor to complete the work, he said.
“We have no idea when Arch will get back to us about (Frank Cochran),” DOT communications specialist Sherry Beal said. “Arch said that it would take about six weeks to find another contractor, but they made that claim about 12 weeks ago.”