The Town Council voted unanimously Monday, May 2, to approve settlements in two disputes with contractors, one at Knightdale Station Park and another at the intersection of Smithfield Road and Knightdale Boulevard.
The town had been in mediation with Wilson-based PLT Construction over work at the park. The settlement involved the town paying PLT $97,500, according to a town staff report.
The two sides reached an agreement in April 2014 in regard to disputes that arose during park construction, according to the report, but then disputes resurfaced over interpretation and implementation of the terms of the settlement agreement.
PLT filed suit against the town in 2015 claiming more than $300,000 for work performed, plus interest and attorney fees, but the town denied liability and filed a counterclaim for damages resulting from faulty work, and the two sides ended up in mediation.
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Town attorney Clyde Holt recommended that the Town Council vote to accept the mediated settlement, which it did, 4-0, during its May 2 meeting. Councilor Dustin Tripp was not present.
The council also voted 4-0 on May 2 to accept a settlement agreement with Burlington-based Triangle Grading and Paving over the work at Smithfield Road and Knightdale Boulevard.
Triangle failed to complete the project on time, according to a staff report, obligating it to pay damages of $1,500 per day. But there was a disagreement over the number of days that should have been assessed.
The project was primarily funded through N.C. Department of Transportation grant funds, so the settlement was negotiated through DOT.
The settlement reduces the number of unexcused late days from 64 to 26, cutting the damages from $96,000 to $39,000. Weather was the rationale for reducing the days, according to the report.
The settlement further reduces the damages to $19,500, which the town retains in its final payment to Triangle, which will be $84,631.74, according to the report.
The town staff recommended approval of the settlement, which allows it to close out contracts with the contractor and the DOT.
Matt Goad: 919-829-4826