The City of Fort Worth has halted work on the Victory Forest Community Center after an issue with the contractor.
Victory Forest Community Center project is at the intersection of Hemphill Street and East Biddison Street in Council District 9.
Construction on the new Victory Forest Community Center is 80 percent complete, but work has been halted because the prime contractor has failed to make payments due to subcontractors, city officials said in a press release.
The Victory Forest Community Center project is at the intersection of Hemphill Street and East Biddison Street.
The construction contract was awarded Jan. 20, 2016, to C. Perry Builders Inc., a company that has been in the commercial construction business for 41 years. The total construction contract amount is $5.3 million, with a contract completion date of Feb. 15, 2017.
The city said it has been notified by 21 subcontractors and suppliers that C. Perry Builders has failed to make payments due under the subcontracts. The estimated value of these unpaid claims is approximately $1.5 million, the city claims.
The city has moved forward to act on the payment and performance bond that was required on the project. The city said the bonding company, Hudson Insurance Co., is legally and financially responsible for settling payment disputes between the prime contractor and subcontractors, and taking over completion of the project if necessary.
The city has made a demand to Hudson Insurance to pay the subcontractors and suppliers.
The legal process to terminate the contract and require Hudson Insurance to complete the project has begun, and city staff has put C. Perry Builders and Hudson Insurance on notice that the city will pursue liquidated damages that began to accrue once the Feb. 15 completion date was missed.
City officials estimated, based on the current stage of construction, it will take about three months to complete once work resumes at full capacity.
City officials said they will continue to provide status updates to the community and neighborhoods impacted by the delay.
C. Perry officials did not return calls for comments.