Dive Brief:
- The North Carolina Department of Transportation has announced it is replacing highway contractor DeVere Construction Co. with Lane Construction, which will take over work on a $52 million 1.6-mile road-widening project in Charlotte, as well as an additional $4.4 million in area highway work, The Charlotte Observer reported.
- DeVere walked off the road-widening project in January — when it was only 67% complete — over a payment disagreement, and the NCDOT declared the company to be in breach of contract when it did not return to work by the set deadline of Feb. 8.
- DeVere also walked off three other state projects, and company officials have refused to discuss how much money is in dispute, answering only that the parties will "likely end up in court."
Dive Insight:
In January, Richard Crittenden, president of DeVere Construction, told the Triangle Business Journal, "We are a second generation, family owned construction company and are proud of our work. The decision to demobilize was not an easy one, but there is a limit to our patience. The NCDOT claim process is broken. I fully anticipate DeVere Construction will prevail and recover the monies properly due and owing by the NCDOT."
Ever since DeVere stopped work, NCDOT officials have maintained that they are relying on DeVere’s performance bond to pay for any replacement contractor as per the terms of the bond. However, if the bonding company does have any expenditures involved in installing Lane on DeVere’s projects, they will most likely expect reimbursement from NCDOT if a court finds that DeVere was not at fault. If a court rules in favor of NCDOT, the bonding company will seek reimbursement from DeVere.