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July 23, 2008

At the July 21 meeting of the Haywood County Board of Commissioners, the board took a step that should allow for the resumption of work on the Haywood County Historic Courthouse.


Subject to the Board’s final approval of the Takeover Agreement, the work should be resumed within the next two weeks under the control and supervision of Nicholson Professional Consulting Inc., a representative of the Surety, Fidelity Deposit of Maryland.


Fidelity Deposit of Maryland is the Surety / Bonding Company for KMD Construction. 


On May 5th, 2008, the board terminated the contract of KMD Construction, the general contractor. Since that time, the Commissioners, attorneys, architects, engineers and other consultants have been performing due diligence to assess the extent and cause of deficient work, and negotiate a Takeover Agreement with the Surety.


The reason for the termination was failure to produce a proper schedule and sequence of planned work as required by the contract, failure to properly manage and staff the project so as to complete it in a timely manner and failure to properly construct certain Concrete Masonry Unit wall structures.


Following a closed session with the Commissioners, attorneys, architects and consulting engineer, the board on a 3 to 1 vote, approved resumption of work, subject to formal approval of a Takeover Agreement between the County and the Surety, Fidelity & Deposit Company of Maryland.


Under the Takeover Agreement, the Surety will complete the construction and its representative, Nicholson Professional Consulting, will assume from KMD Construction, the terminated general contractor, direct supervision and responsibility for the work performed by subcontractors.  The Surety will also assume responsibility for financial matters.  Prior to the vote, the Board interviewed Bernard Freismuth, the Surety’s representative.


Under the terms of the Takeover Agreement, the Surety will employ KMD Construction to provide a new project superintendent to assist the Surety's representative and to provide required licenses and insurance.  The new project superintendent will work under the direct supervision of the Surety's representative and will serve as a resource to the Surety’s representative in working with the subcontractors, but KMD will not self-perform any of the construction.


Within the next few days, the Board of County Commissioners will schedule a special meeting to consider the final Takeover Agreement.