Town Terminates Fire Station General Contractor [with video]

Effective January 27, the Town of Groton fired TLT Construction Corp., general contractor for the new $8 million Groton Center Fire Station on Farmers Row, following the company's inability to make its payroll and pay subcontractors for labor and materials despite having received payment for work. The notice of termination essentially declared TLT in default of the contract.

In August, there was discussion that some TLT subcontractors were not getting paid and Town Nanager Haddad immediately put controls in place to ensure payments. "No taxpayer monies were wasted. We had controls in place from the start," he said. He added that overall the project is going well and said that the major building effort is about three weeks behind and he anticipates that it will be finished by mid-May with occupancy slated for mid-July.

In a letter dated Dec. 12, 2013 the bonding agency, Western Surety, notified the town that it had received several payment bond claims in connection with the project and had also received several performance bond and payment bond claims on other projects where TLT served as general contractor. The letter directed the town make no further disbursement of contract funds without Western Surety's consent.

After receipt of this letter, the town also learned that a TLT check to subcontractor Capeway Roofing, in the amount of $103,269, was returned due to insufficient funds. According to Haddad, to the best of the town's knowledge, that amount remains outstanding and unpaid.

On Dec. 20, 2013, TLT informed the town that on account of financial constraints, it could no longer maintain the employ of the project manager and site superintendent assigned to the project and that for the same reason it could not maintain four employees working as carpenters.

According to Haddad, since that time TLT has not provided any on-site staffing for the project and has essentially abandoned the work on the project. As a result the town has been required to make separate personnel and contractor arrangements in an effort to maintain the project in an active and viable mode.

In addition, the town has learned that TLT has asserted in litigation involving another construction project that the absence of payments from construction project owners has left TLT without funds to perform its general contractor obligations and to pay its subcontractors.

Citing failure to supply enough skilled workers, failure to make required payments to subcontractors for materials and labor, failure to maintain a project manager and superintendent, failure to supervise and direct work, failure to staff the project and abandonment of the project work, the town maintained that TLT substantially violated its obligations under contract documents and thus is terminating the contract.

Haddad said that the bonding company has now taken over and has sufficient funds to complete the new Center Fire Station as planned.

The town will take over oversight of the project and has hired the project manager and superintendent to work for the town on the completion of the project, "We are going to get a great station," Haddad said, adding that Western Surety has allocated $140,000 to pay off existing obligations for work done before Dec. 23, and any remaining obligations could be covered by the project's contingency funds. He assured the Board that there are plenty of funds to make this happen.