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The Haywood County Board of Commissioners have finalized a Takeover Agreement with the Fidelity Deposit Company of Maryland, the Surety/Bonding company for KMD Construction, which paves the way for work to continue on the renovation of the historic County Courthouse.

On Aug. 4, commissioners voted 4-1 to give final approval to the Takeover Agreement that received tentative approval on July 21. Commissioner Mary Ann Enloe voted against the Takeover Agreement. Later on Aug. 4, representatives from the Surety also approved the Takeover Agreement.

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. 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 the 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.

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 is not scheduled to self-perform any of the construction.

County Manager David Cotton said he expected work on the courthouse renovation to get back underway within a week. The project is expected to be completed before spring of 2009.

 

For more information, contact:
David Teague, Public Information Officer
Haywood County
828-452-7305; 828-400-9691 or
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