TxDOT defaults on Woodlands Parkway expansion contractor

Originally the project was supposed to be completed in December of 2013.

However, it hit several snags.

"We just experienced some challenges working with them to deliver the project in the timeframe that was promised," Samuels said. "And continued to—deadlines continued to not be met with the new timeframes that we were given—so in the end, we felt that it was best to work directly with the surety to ensure the project would be completed."

As of Sept. 1, the project was a little more than 80 percent completed. Menade President Jerry Wade said the company was about one week out from finishing the project.

"My outlook on the whole deal was, we'll finish the job and then we'll argue about whose fault what is, but they chose to do a different route," Wade said.

Samuels said the choice to stop working with Menade on the expansion was the result of several different problems and that the pros outweighed the cons.

"I know that seems like, at this point, why wouldn't we allow the contractor to finish?" she said. "It's a decision that certainly took a while, in that we really sat down and thought about it. And we did not make that decision lightly because we knew when you default the contract, the work essentially stops. So we were saying that we would rather work with the surety company than continue to prolong the completion of the project working with Menade."

Every day that the project exceeded the initial number of project days allowed, Menade was charged $785 in liquidated damages.

"[Menade] is paid monthly by the work they complete," Samuels said. "So it is taken out of what we owe them for the project."

Wade cited "continual design problems" and other issues at the project location as the cause of the delays, and said that TxDOT would take weeks or longer to respond when told about the problems.

Samuels said Menade could still be selected for other TxDOT projects if it submits the lowest bid and meets the requirements for a job.

"They're working on a contract at north Harris [County] right now," Samuels said.

The surety company, which Samuels compared to a car insurance company, holds the bond for the stalled project and is responsible for the project's completion.

First, the surety has to determine if Menade is in default. Wade compared the situation to a car accident, in that the insurance company has to verify the accident has happened before it will pay for repairs.

If International Fidelity and TxDOT select a different contractor, the new construction company will then provide a timeline for completing the project. And if the surety does find Menade to be in default, it will be a first for Wade.

"I've been doing this 35 years never been in default or never been late on a job," Wade said. "I've got 30-something other projects going on. Not one problem."