New Braunfels, J3 Co. reach settlement on stalled Klein Road reconstruction project

During the consent agenda portion of the regular April 25 City Council meeting, the New Braunfels City Council members approved a settlement agreement relating to a lawsuit between the city and J3 Company for construction on Klein Road.

Work on the Klein Road reconstruction project was halted in 2021 after portions of the first phase experienced road work failures.

Phase 1 of the project, which included the portion of Klein Road between Walnut Avenue and FM 1044, was approved by voters in the 2013 bond program.

In 2018, the city entered into a $7.16 million contract with J3 Co., a San Antonio-based construction firm, for the reconstruction project.

According to the city, work on the project was moving forward and $1 million in change orders was approved before the final layer of asphalt was applied. When paving work began, portions of the road work began experiencing failures.

After several months of discussions, a settlement was reached between the city and the company that allowed the city to retain $598,137.43 to be used for roadway repairs, while J3 accepted $48,519.61 as the full and final payment for completed work.

According to city documents, J3 Co. dismissed the lawsuit, each party will bear its own court and attorney costs, and there was no finding of fault or wrongdoing.

The city has not announced when repairs to the first phase of Klein Road will be completed.