The Accomack County Administrator, Mike Mason, recently sent us an update on the status of the construction contract. Dated February 24, 2022.
The County notified R.H. Contracting, Inc. (RHC) on January 29, 2022 of its intent to terminate the Eastern Shore Regional Library Construction Contract for default. The default being RHC did not complete the project on or before January 28, 2022, which is the final completion date in the construction contract. This letter stated that the County intended to terminate the contract within seven days. It was sent not only to RHC but also the Surety associated with the performance bond. Since the letter’s issuance, the Surety, RHC, and County have been involved in tri-party negotiations regarding the completion of the project. These negotiations center on the diligent prosecution of the work by RHC, a revised project schedule acceptable by all parties, cooperation and involvement of the Surety including additional project monitoring to be provided by the Surety’s consultant and liquidated damages. These negotiations are on-going with the intent to memorialize terms, conditions and reserved rights in a Memorandum of Understanding if all parties can agree. While these negotiations take place, RHC will be permitted to continue work under the terms of the original contract and subsequent change orders which are still binding. If negotiations are not successful, the County may pursue its right to terminate the contract and seek relief from the Surety.