Construction Projects Where Contractor Walks

[roadman65]

In Florida along SR 52 and SR 54 in Pasco County two road widening projects are on hold indefinitely. As the contractor who started the job bailed on FDOT and now the state must find a replacement company to complete the much needed widening.
https://www.fdottampabay.com/project/266/256323-1-52-01
https://www.fdottampabay.com/project/212/416561-2-52-01

Any other projects you know of on hold or at one time on hold but now resumed or completed?

[Rothman]

Not sure I know of a contractor walking off mid-construction.  Have had a consultant walk out during preliminary design, though.  And, of course, contractors who have had their jobs shifted to others due to deliverability or quality issues.  But mid-construction?  Can't think of any off-hand.

[wriddle082]

A few years ago in Charlotte, the original contractor for the US 74 Independence Blvd superstreet conversion b/w NC 27 and just before Harris Blvd defaulted, and NCDOT had to re-bid the project to get it completed.  I think it was delayed by at least a year.

[Dirt Roads]

Welcome to my world.  Not trying to get political, but when government agencies gets too self-focused or too heavy handed with contractors it is nearly impossible for the business to sustain sufficient cash flow for survival.  Agencies can try to impose tougher holdbacks*, penalties and liquidated damage clauses to try to discourage walk-offs, but in the end a business needs a consistent cash-flow or they have to send people home.  In many cases, the disincentives actually cause serious impact that pushes a financially-weak contractor to the brink.  On the other hand, a desperate contractor might manipulate an agency to bend the rules so that the business can stay afloat (which can also cause huge problems).

*holdback - a percentage of progress payment held in reserve/escrow until it is proven that subcontractors and suppliers are actually paid.

[vdeane]

Welcome to my world.  Not trying to get political, but when government agencies gets too self-focused or too heavy handed with contractors it is nearly impossible for the business to sustain sufficient cash flow for survival.  Agencies can try to impose tougher holdbacks*, penalties and liquidated damage clauses to try to discourage walk-offs, but in the end a business needs a consistent cash-flow or they have to send people home.  In many cases, the disincentives actually cause serious impact that pushes a financially-weak contractor to the brink.  On the other hand, a desperate contractor might manipulate an agency to bend the rules so that the business can stay afloat (which can also cause huge problems).

*holdback - a percentage of progress payment held in reserve/escrow until it is proven that subcontractors and suppliers are actually paid.

On the other side of the coin, it's not the state's problem if a contractor tried to game the bidding process.  Too many contractors will under-bid on items they think will be used less than the amount proposed and over-bid on ones they think will be used more, leave off contingency expenses, etc. in an attempt to artificially lower their bid amount while still making a financial windfall.  If the quantities are correct or the state won't pay them extra in the event of delays or mishaps, this can easily push a contractor to financial insolvency.

[Rothman]

Welcome to my world.  Not trying to get political, but when government agencies gets too self-focused or too heavy handed with contractors it is nearly impossible for the business to sustain sufficient cash flow for survival.  Agencies can try to impose tougher holdbacks*, penalties and liquidated damage clauses to try to discourage walk-offs, but in the end a business needs a consistent cash-flow or they have to send people home.  In many cases, the disincentives actually cause serious impact that pushes a financially-weak contractor to the brink.  On the other hand, a desperate contractor might manipulate an agency to bend the rules so that the business can stay afloat (which can also cause huge problems).

*holdback - a percentage of progress payment held in reserve/escrow until it is proven that subcontractors and suppliers are actually paid.

Pfft.  Don't bid and sign on a contract you can't follow through on.  If this was a widespread issue, then nothing would get done.  Plenty of contractors in NY willing to hold to the requirements and get the job done -- vast majority of jobs get done.  There will be OOCs or delays, but they get done.

[hbelkins]

We had an issue with the development of a rain-to-trail project, specifically, the rehabilitation of a tunnel at the Breathitt-Magoffin county line out in no man's land. The location is probably closer to Rothman's family's ancestral home on the (whichever) fork of Beaver in Floyd County than it is the county seat of Breathitt County. The contractor more or less abandoned the project, and then vandals set a fire inside the partially-renovated tunnel and my understanding is it ignited a coal seam and structurally damaged the tunnel walls. The project has not yet been re-bid.