Houston Mayor John Whitmire is urging for enhanced screening of businesses partnering with the city, emphasizing the need for a more robust selection process. This call comes in response to instances where contractors declared bankruptcy mid-project, leaving work incomplete.
In 2020, the city awarded over $4.9 million to Vortex Turnkey Solutions for sewage pipe repairs. Unfortunately, the contractor went bankrupt when the project was 75% complete, citing a lack of manpower and supplies, compounded by challenges stemming from the COVID-19 pandemic.
To address the situation, the Houston City Council recently approved revised payments to the contractor, covering only 75% of the work done, amounting to just under $3.5 million. Subsequently, emergency purchase orders, costing over $1 million, were unanimously approved by the council to ensure safety measures, such as traffic control, are carried out by subcontractors until a new primary contractor is secured.
Mayor Whitmire stressed the importance of a more meticulous selection process for prime contractors, emphasizing the need for due diligence to avoid the complications arising from bankruptcies mid-project. The city intends to recover the additional costs incurred through performance bonds initially put in place for the primary contractor.
