Ask Joe: Will NDOT collect on late fees for Meadowood project ?

Reported by: Joe Hart
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Updated: 11/01/2013 6:49 pm
Question:
From the Ask Joe file tonight a question from a viewer about delays on a local construction project.
Dave in Reno wrote in asking if NDOT is going to impose some type of penalty against the contractor on the Meadowood Interchange project ?

Answer:
That project dragged on a long time and just finished up a couple of months ago.  Meadow Valley Construction started work in June of 2010.   In fact it was Governor Jim Gibbons who was on hand for the groundbreaking, that's how far back this project goes.

The project ended up running 172 working days working behind schedule.
  By law, the state can fine the contractor $5,000 for every day it runs late.   So that would add up to more than half a million dollars the state could collect.  But will they ?
 
I spoke with Scott Magruder over at NDOT.  He says they are in negotiations with the company. They have informed Meadow Valley of the amount they feel they owe, that is at least $500,000.    Now it's up the company to respond.  Magruder says they hope to hear something before the end of the year.

   If negotiations fail there are other options, including a claims board, or a dispute resolution team to settle the matter.   And if all that fails, a trial would be a last resort.
   So that's where it stands.   NDOT is hoping to collect on those late fees. Whether they do, and how much the company is willing to pay is still up in the air.

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18469days - 11/17/2013 7:25 PM
0 Votes
Well you all wrong I believe you just kidding around as it does not matter the ethnicity of the people whom may or nay have not worked on this project what it does take though is a precise management team with the knowledge to build this project in their mind put it on paper into a schedule and execute all the planning and actuall construction stages to build it on time and within budget. Meadow valley lacked all this from the opening bell they had a piss poor management team from the start and were overwhelmed by the many many stages of tasks on hand and totally failed to execute the plan then want to blame all others except for themselves. As for holding the 500k the state should be holding as much as 10 % depending on how the contract reads, last I heard the were in excess of 872k and that was based on 5,300 per day so much more than what is in this latest report. If the state was holding 10% it would be of total contract somewhere stored 22m or 2.2m in retention. I hope they make them pay as I told them when I quit in late 2012 they would be I'm excess of 500k in penalties because they were idiots and they fired me , lmfao

renojim - 11/2/2013 7:57 PM
0 Votes
Wrong Steve, if they would have hired people from Mexico it would have been done early.

steve - 11/2/2013 3:09 AM
2 Votes
Maybe if meadowod construction company should have thought twice about hiring people from mexico to run their project into default.

Old Parnell - 11/1/2013 9:23 PM
0 Votes
Never occurred for NDOT to withhold a certain amount - say 500K from the final payment?
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