This request relates to the resolution of a construction/breach of contract lawsuit through settlement. Pursuant to Texas Local Government Code Chapter 271, the City entered into a contract (the “Contract”) with Conrad Construction Co., Ltd. (“Conrad”) for a construction and rehabilitation project known as West Little York Paving from T.C. Jester to Albanson/Deep Forest, WBS No. N-000687-0003-4. Conrad’s contractual obligations included the demolition and reconstruction of a bridge over White Oak Bayou (the “Project”). In performing the work, Conrad claimed to encounter changed conditions from those represented in the Contract drawings and specifications, including the amount of sediment at the bottom of White Oak Bayou. In addition, Conrad claimed that the Contract drawings misrepresented the depth and angle of the slope paving, requiring Conrad to conduct extensive additional excavation work to complete the Project. Conrad claims to have done $146,636.00 in additional work as a result of changes conditions and inaccurate drawings.
The City declined to pay Conrad any additional sums and Conrad filed suit against the City in 2015-17269; Conrad Construction Co., Ltd v. City of Houston; in the 133rd Judicial District Court of Harris County, Texas. Conrad initially demanded the entire $146,636.00 to settle that case. The parties conducted discovery and the case was unsuccessfully mediated. However, the mediator thereafter made a written proposal that the case should be settled for $82,500 in exchange for a full release of all claims. The parties agreed to this settlement subject to City Council approval.
After a thorough review, the Legal Department recommends that this lawsuit be settled for $82,500.
The Legal Department recommends that Council approve the Compromise and Settlement Agreement and issuance of warrants.
ESTIMATED FISCAL OPERATING IMPACT: No significant Fiscal Operating impact is anticipated as a result of this project.
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Departmental Approval Authority
Dale A. Rudick, P.E. Director
Department of Public Works and Engineering
WBS No. N-000687-0003-4