Archive for Thursday, December 4, 2008

City sued by construction company

Crews work during November 2007 on the gymnasium floor of the Eudora Community Center. Vanum Construction Company alleges it still is owed more than $120,000 for its work on the aquatic and community centers.

Crews work during November 2007 on the gymnasium floor of the Eudora Community Center. Vanum Construction Company alleges it still is owed more than $120,000 for its work on the aquatic and community centers.

December 4, 2008

The city of Eudora found itself embroiled in another lawsuit after Vanum Construction Company sued the city Oct. 22.

The Kansas City, Mo. company alleges it is owed $120,845.18 for work done on the Eudora Aquatic and Community Center in 2007.

The city entered into a contract with Vanum in December 2006 for the construction of the aquatic and community center, including the pool and gymnasium. The original completion date for the project was set for Aug. 29, 2007, but change orders by the city and additional work set the project back and it wasn’t fully completed until Dec. 11, 2007.

However, the pool was completed July 6, 2007, and the recreation center was completed Nov. 6, 2007.

Since the completion of work, the city has made calls to Vanum for various non-warranty repairs outside the original scope of the contract.

The city has withheld $54,500 in liquidated damages — 109 days at $500 a day, according to the contract — because it claims the project was completed late.

Liquidated damages is the fixed sum two parties in a contractual agreement decide upon in the event that work done is not satisfactory.

The contract between the two parties states that the contractor will pay the owner liquidated damages if work isn’t completed within the time agreed upon, unless the contract time was changed by change orders.

Vanum also said the city had been using at least 50 percent of the facility while the contract and additional work were ongoing. So, it cannot claim liquidated damages when it was partly using the facilities.

City Administrator Cheryl Beatty said the city plans to

counter-sue but has not yet done so.

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