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Major Construction Goes Bankrupt!


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Contractor Technology has filed for bankruptcy which now stalls several projects around town, including the I-10 East (59N to 610 East) which was due to be completed this month now seems to be completed in September.

It was not reported which other projects will be delayed by this development as reported by KTRK. No link is available.

Yay.

:P

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I remember two (not major projects) in Louisisana just stalled and the work went a long at a snails pace. A two year project took 4 years. The state came in an force the remains of the company to finish the work and gave them pay penalties. The state saved a million dollars on the project by citing the company's problems during the project.

I don't know if Texas law is much different, but I'd had to see these project come to a hault.

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You would think the contractor would have to post a performance bond.  It might be necessary to find another contractor, but the bonding company should take the financial hit.

I understand that finishing a project under a performance bond is a loooong, slow, messy process. The bonding company drags their feet at every step.

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Same thing happened in WestU, the contractor rebuilding the roads went bankrupt and they have stopped all construction, even though there are several streets that are torn up and thus making driveways inaccessible! They plan to have construction resume in about two weeks.

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