Caldwell: City in arbitration over city hall construction
Published: Wed, 03/01/23
City in arbitration over city hall construction
Burleson County TribuneBy Roy Sanders
March 2, 2023
The City of Caldwell is in pending arbitration with IKLO Construction of Houston concerning the long delayed city hall construction project.
City officials are unhappy with the project and with lengthy delays.
The city council on Tuesday, Feb. 21, met in executive session for about an hour with attorney Jerry Negrete of the Chapman Firm of Austin, the city’s attorney, concerning the issue but took no action after reconvening.
The agenda item for the executive session listed arbitration with IKLO and Philadelphia Indemnity Insurance Co., who handles the surety bond for the project.
The city filed its demand for arbitration against IKLO Construction on April 29, 2022. The city added Philadelphia Indemnity Insurance Co., to the arbitration on Jan. 19, 2023.
City officials also issued a written public statement after the meeting. The city acknowledges the incomplete project creates an unattractive aesthetic in Caldwell’s historic downtown district, the statement said.
“The city is working with its legal team, and on advice of its legal counsel, the city has been instructed not to modify, correct or complete any part of the building until the current litigation reaches a point where modification, correction or completion of the building is recommended by legal counsel,” the statement said.
The statement said the city is “committed to its citizens and is working to ensure the future home of city hall is a quality, modern project.”
“The city will continue to work with its legal team to achieve this goal,” they said.
Due to the litigation, the city had no further comment, and they said additional questions could be directed to the city’s legal team.
The city terminated its contract with IKLO Construction of Houston for the project in July of last year and said it would seek a new contractor.
Since then, the city has continued to gather information on the status of the building and to develop a scope of work to finish the building, City Administrator Camden White said.
White issued a prepared statement on July 22 of last year that was prepared by the Chapman Firm to announce the contract termination. The statement said there were construction problems at the building, including problems with the installation of windows and weatherproofing material.
The city also hired Singleton Zimmer Halliburton Architecture PC of Bryan in March of 2022 as their architect for the remainder of the construction process.
The city contracted with IKLO in 2018 for $4.695 million for the project along Fox and Main Streets. Council members have questioned the delays and discussed their options in prior meetings. The city allocated $4.9 million in set-aside, available funding for the project without bonded indebtedness. No certificate of obligation or voter-approved bond issue was needed. White said previously that $3.2 million of that was already spent, and the city still had $1.7 million in remaining, available funds to complete the project