A project to finish a nearly $7 million terminal at McKinney National Airport has encountered its second significant snag.

McKinney City Council agreed Aug. 16 to end a contract with McRight-Smith Construction due to the firm’s file for bankruptcy this spring. McRight-Smith Construction was brought on by the city in late 2020 to complete work on the McKinney National Airport’s executive terminal.

The contract termination was a procedural step to allow the city to use the surety company to hire a replacement contractor, city attorney Mark Houser said. He noted that this does not cost the city any additional money, and the dollar amount remaining on the city’s contract with McRight-Smith will be tendered to surety.

Efforts to finish the executive terminal have encountered turbulence before, with the city contracting Western LLC when the project began in 2018 to expand the airport with a new hangar and terminal. Work on the hangar was completed on time in 2019, but shortly after that, Western LLC filed for bankruptcy and defaulted on its agreement with the city to finish the terminal. This caused the project to stall for about a year before McRight-Smith came aboard.

McRight-Smith showed six weeks of work left on the last schedule produced before giving notice to the city, but it is unclear at this time how accurate that estimate still is under the new circumstances, according to a city spokesperson.