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There are a total of five roadway projects that were recently awarded by Palm Beach County to the contracting company called Municipal Contractors. Each of those projects had contractor performance issues and the County ended up finding Municipal Contractors in default of all five of these contracts. Specifically, these project locations are: 

  • Gateway Blvd at Military Trail, 
  • Clint Moore Road at Jog Road, 
  • Hypoluxo Road at Jog Road, 
  • Northlake Blvd at Military Trail, and ​
  • Ellison Wilson Road. ​

Timeline of EPW Updates

​​​March 18, 2025

Hypoluxo & Jog Project

  • Roadway & Underground Work
    • The annual contractor, Johnson Davis, conducted a video inspection of the storm drain system and identified several pipe joints outside the acceptable tolerance. The two significant issues found required road excavation and have already been addressed. The remaining deficiencies will be repaired using noninvasive methods from inside the pipe.
    • Because the remaining repairs do not require road excavation, milling and paving could begin and is ongoing. ​​​​​
    • Johnson Davis will begin mobilizing equipment from this project to the Gateway project within the next three weeks.

 

  • Signals:​
    • Hypoluxo/Cumberland Farms: Coordination with the roadway contractor is ongoing, and the signal work will begin immediately following the completion of paving. If roadwork and detection loop installations are completed on schedule, we estimate the signal will be activated early to mid-April.
    • Hypoluxo/Jog: Soft digs for the remaining three mast arm locations were completed on March 7. Gerelco, the signal contractor, is working to coordinate the installation of the mast arms, if FPL can de-energize the overhead lines as requested.
    • Gerelco would like to schedule work on the west side of Hypoluxo & Jog for the week of April 21.


Gateway & Military Project

  • Roadway & Underground Work
    • Some video inspections of the storm drainage pipes were received on March 7 and have been reviewed by county staff.
    • Johnson Davis will perform additional video inspections during nighttime hours next week due to the location of manholes within active travel lanes. Once reviewed, a determination will be made if noninvasive repairs can be conducted from within the pipe or if the road must be excavated to perform a major repair. This determination will dictate when the milling and paving operations begin.
    • The contractor has committed to breaking ground on this project within the next three weeks.

 

  • Signals
    • Soft digs were conducted on March 12 and 13th. All corners are clear of conflicts except the northeast corner, where two mast arms will be installed.
    • Coordination with the utility owners has already begun for of the mast arm foundation location.
    • Discussing alternate solutions to resolve the second mast arm location.
    • Like the Hypoluxo and Jog project, we will need FPL de-energization at the southwest corner. Staff met Gerelco on March 18 to determine to discuss foundation installation plan.  Overhead FPL lines will need to be de-energized for the installation.  Once Gerelco confirms their schedule, they will request de-energization from FPL.​


​​​March 5, 2025

​The contractor is actively working on completing the project at Hypoluxo and Jog Roads. At Gateway Blvd and Military Trail, crews are nearly finished with cleaning out the new drainage pipes which were more than 75% filled with debris.​

​​​February 13, 2025​
​County staff has received estimated pricing from Gerelco (Annual Signal contract) and Johnson and Davis Inc. (Annual Drainage contract), and each contractor has been approved to begin initial phase of work which includes site cleanup, replacement of maintenance of traffic equipment, investigation of previous work installation, and confirmation of remaining work.  The County expects to meet with the Surety company at the beginning of March and expects to have an overall completion schedule by the end of March 2025.

Question: DO WE KNOW WHAT THE PRICING IS TO COMPLETE THE PROJECT? WILL THOSE FUNDS BE RECOVERED?

Response: No, the pricing to complete the project will not be available until the contractors have confirmed what work is remaining.  Since the County only pays a contractor once the work is complete, there are no currently funds that need to be recovered.

 Question: DO WE HAVE A BALLPARK DATE FOR COMPLETION?

Response: The County expects to have an overall completion schedule by the end of March 2025.​​

January 17, 2025​
​There are two remaining projects: Hypoluxo Road and Jog Road Intersection Improvements;  Gateway Blvd and Military Trail Intersection improvements

Last month, the county decided to take over the two remaining projects and use our existing annual contracts to complete them.

Here is the current status of the two remaining projects: County staff has received pricing from Gerelco (Annual Signal contract) and Johnson and Davis Inc. (Annual Drainage contract), and each contractor has been approved to begin work.

Johnson and Davis will begin the first phase (clean and inspect installed pipes by the previous contractor).

Each location will require an outage by Florida Power and Light (FPL)  to install the traffic signals and we will be working with FPL to schedule.

There will be an estimate by the end of February for the overall completion of each location after some further details are worked out.​

December 20, 2024​
There is still a significant amount of work remaining for the Hypoluxo Road/Jog Road and Gateway Blvd/Military Trail intersection improvement projects. After delays with the surety company, the County has decided to complete the projects internally to move them forward. The surety will reimburse the County for any additional costs incurred beyond the remaining project funds. Following the removal of Municipal Contractors Inc. for, among other things, nonperformance and failure to pay subcontractors, County staff chose to have Old Republic Surety Company (ORSCo) takeover the projects and complete the work, but faced further delays. As a result, the Engineering and Public Works Department (EPW) will use two of its annual contractors to finish the tasks as an emergency task order. These contractors will execute the remaining work, with pricing expected by late January.​
October 1, 2024 & Ocotber 24, 2024​

We understand it may seem like progress has stalled on these projects, but please be assured that we are actively working behind the scenes to move these projects forward in order to be completed. The Old Republic Surety Company (ORSC) has selected Vertex Construction to oversee the projects. Vertex is currently in discussions with subcontractors and has found at least one company that is preparing to submit a bid for the outstanding work on both projects within the next two weeks. Once the bids are received and evaluated, ORSC will award the work and provide a completion schedule. The project team will meet the week of October 14, 2024, to review the proposals. We are aware of the challenges posed by the previous contractors, but we remain committed to making progress. ​County staff met with the project team again on October 22, 2024. Vertex has received one complete bid proposal and is working with one other contractor to finalize their bid. There will be another meeting on October 29, 2024, to review the bids and be informed of ORSC’s decision. ​ The Engineering and Public Works staff, with guidance from the ​County Attorney's office, is dedicated to moving these projects along. Staff is still monitoring the project areas to ensure that necessary equipment remains in place and is safe for commuters. Staff was informed about potholes in the project areas this week and those repairs have already been made.​

August 22, 2024

​​​The County is experiencing another hurdle to get these pay applications paid and, unfortunately, this is crucial to get the projects started again. County staff is currently working with the Clerk and Comptroller's office to provide the necessary documentation for the County to make payment to a surety company that was not part of the original contract with Municipal Contractors.

August 6, 2024

​While active work has paused, our team continues to monitor the project sites on a daily basis to ensure they are safe and secure. We are navigating a complex process to restart the project. As previously noted, the surety company has agreed to take over completing the work. However, before any progress can be made, they must address overdue payments to subcontractors in case those subcontractors can continue performing work. Securing approval for these payments has been challenging. The Clerk and Comptroller has put a hold on the payments because Municipal's signature does not appear on the payment application. This process has been fraught with complications, largely due to issues stemming from the initial contractor's failure to perform. The total amount of payments due at this time seems to be about $300,000. We appreciate your patience and understanding as we work through these challenges and work toward resuming the project.

July 9, 2024
​As of 6/27/24, the surety company has provided an acceptable indemnification letter to allow the County to pay the Surety on the three projects with outstanding pay applications.  Those pay applications are now in the process to be paid by the County.    ​​

​June 26, 2024

Municipal Contractors created a challenge for the surety to perform the work by not paying the subcontractors in a timely manner and the surety is still working to correct this situation.  Due to competing claims to Municipal's accounts receivables, the County needed the Surety to provide an additional indemnity before the County can release approved payments to the Surety.

The surety is still accepting bids from other subcontractors to complete the remaining work. It will likely take the Surety a month to review bids before the Surety selects a contractor, who can then provide a completion schedule. County staff expects these open jobs to take about 3 months once work resumes. We are unable to estimate a completion date until work resumes.

In the meantime, we have inspectors visiting the construction site daily to ensure that safety equipment is maintained appropriately.​



May 10, 2024
County staff met with contractors interested in completing work at two sites, Hypoluxo/Jog and Gateway/Military, where Municipal Contractors defaulted. The surety is still accepting bids and w​​​orking with existing subcontractors on payments. It will likely take a month to review bids before selecting a contractor, who can then provide a completion schedule. County staff expects both jobs to take about 3 months once work resumes.
April 15, 2024
County staff met with contractors interested in helping to finish the work needed at two (Hypoluxo/Jog and Gateway/Military) of the five locations that Municipal Contractors defaulted on to review the outstanding work.  The signal subcontractor and the surety company have agreed on payment for two outstanding pay applications for completed work and County staff expects that payment to be sent by the surety in the next two weeks.  Once that payment is received, the signal subcontractor will be able to submit pricing to the interested contractors so that they can submit full bids to complete the work.  We expected bids to be d​ue to the surety at the end of this month.  Those bids will likely take a month to review before the selected contractor is chosen.  At that point, the contractor will be able to submit a schedule for work completion.  County staff is expecting both jobs to take about 3 months to complete, once work resumes. 
April 9, 2024
Municipal Contractor Update on Three Roadway Projects as of 4/9/24:

Update on the Gateway Blvd/Military Trail, Clint Moore Road/Jog Road, and Hypoluxo Road/Jog Road projects:  County staff received pay applications for approval for the Gateway Blvd/Military Trail project.  Those applications are under review and once approved, will be paid by the surety ​​​on that project for work completed.  Fortunately, the signal contractor has agreed to continue working on the Gateway Blvd/Military Trail and Hypoluxo Road/Jog Road projects now that they are being compensated for work completed.  On 4/8/24, the surety company's contractor held an on-site meeting with four new contractors that are interested in taking over the remainder of the work.  The next step will be for the surety company to hold a pre-bid meeting and then review submitted bids.​




March 18, 2024

​Update on the Gateway Blvd/Military Trail, Clint Moore Road/Jog Road, and Hypoluxo Road/Jog Road projects:  County staff attended multiple meetings with the Surety Company for these projects. The S​​urety Company was just recently successful in getting the previous traffic signal subcontractor to agree to continue to perform their work and the Surety has agreed to compensate the subcontractor for previously stored materials and work completed. As soon as the County staff approve these invoices and the payments are sent to the traffic signal subcontractor, work will be scheduled to resume at these intersections.​ 

March 5, 2024
​​​The remaining work for the Gateway Blvd/Military Trail, Cli​nt Moore Road/Jog Road, and Hypoluxo Road/Jog Road projects is being managed by the Old Republic Surety company.  In December 2023, County staff met onsite with the surety company's representative for these projects (Vertex) to get an understanding of the remaining work.  Vertex is now coordinating with the existing subcontractors under the original contract to see if they're still willing and able to complete the work.  In the event that an agreement cannot be reached with th​​​​​e subcontractors (which is unfortunately very likely), there is a consideration to open bidding for specific portions of the remaining work.  If so assigned by the surety company, Vertex has the ability to assume Municipal's outstanding work.  A timeline for completion of the remaining work is still pending from Vertex.  The other two of their original five contracts were for Northlake Blvd/Military Trail and Ellison Wilson Road.  Both of these projects were nearly complete and will now be completed by County staff. 

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