San Benito CISD places contractor in default in $40 million bond project

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San Benito school district officials are considering taking steps including launching a re-construction of a $40 million bond funded project as a result of foundation flaws while finding its contractor in default of a contract as an 11th-month shutdown pushes the project at least a year behind schedule.

For months, a construction team has been working to determine plans o repair two buildings’ foundations.

On Tuesday, Acting Superintendent Fred Perez’s office said in a statement the team has “concluded that the remediation is not prudent or feasible based on the number and the extent of construction discrepancies.”

In the statement, district officials said the school board voted “to place Davila Construction in default of the contract” during a Jan. 25 meeting.

Now, officials are contacting Berkley Insurance, Davila’s insurance company.

A sign displays renderings of the finished SBCISD Performing Arts Center and Natatorium Facility Tuesday, April 18, 2023, at the construction site in San Benito. (Denise Cathey | The Brownsville Herald)

“As part of the contract, San Benito CISD was protected with surety bonds from Berkley Insurance which would protect the district for the full contract price in the amounts of $21.3 million, $8.8 million and $1.8 million should Davila Construction default on the contract,” district officials stated, referring to the project to build a $21.3 million performing arts theater and an $8.8 million aquatics center.

“The district gave Berkley Insurance notice of default of the contract and made a claim for the performing and the payment bonds in the amount of $21.3 million, $8.8 million and $1.8 million,” officials stated.

“The San Benito CISD Board of Trustees is united in their commitment to completing the performing arts center and the natatorium-aquatics center and will work with Berkley Insurance to complete the state-of-the-art facilities our students and our community deserves,” officials stated. “The community can be assured that no bond funds have been placed at risk as the price, performance and payment of the performing arts center and the natatorium-aquatics center construction are protected by insurance bonds.”

On Tuesday, the Valley Morning Star left a message with Davila Construction, requesting the San Antonio-based contractor respond to the school board’s decision to place the company in default.

It’s unclear whether the company will continue to serve as the project’s contractor.

Construction is halted Tuesday, April 18, 2023, at the site of SBCISD’s future Performing Arts Center and Natatorium Facility in San Benito. (Denise Cathey | The Brownsville Herald)

Last March, then-Superintendent Theresa Servellon, under the past school board, ordered the district’s biggest construction project halted after architect Mike Allex, with McAllen-based ROFA Architects, reported finding some geopiers, or deeply anchored 2-foot-wide rock columns, misaligned with the foundations’ targets.

”During the construction phase of the performing arts center and the natatorium-aquatics center, San Benito CISD’s architects and engineers noticed some discrepancies in the placement of the foundation and the supporting ground structure,” officials said in the district’s statement. “Out of an abundance of caution, San Benito CISD immediately directed Davila Construction to stop construction until the discrepancies could be verified.”

For months, Allex and officials with Davila Construction have been working to determine repair plans to jump-start construction as the shutdown enters its 11th month, pushing the project at least a year behind schedule.

”What followed were the months of weekly meetings with a team of architects, engineers, surveyors, attorneys and construction personnel who attempted to verify and mediate the various discrepancies in the construction,” officials stated.

The San Benito Consolidated Independent School District John F. Barron Administration building is pictured Tuesday, Feb. 28, 2023, in San Benito. (Denise Cathey/The Brownsville Herald)

“After many meetings, the team has concluded that the remediation is not prudent or feasible based on the number and the extent of construction discrepancies, which have been verified with new testing and measurements,” officials stated. “While the delay in the construction of these two student facilities has been unfortunate, the San Benito CISD Board of Trustees and administration felt that it was absolutely necessary to ensure the safety and the integrity of these two important student facilities and to protect the bond funds dedicated to their construction.”

Since a previous school board proposed a $40 million bond issue in 2018, the construction project has become one of city’s hottest topics, a political football drawing fire from opponents.

In 2018, a previous administration pushed for the bond issue to fund construction of the $21.3 million performing arts theater, the $8.8 million aquatics center and a $5.7 million indoor practice field, which has been completed.

In a heated election, 54% of voters passed the bond issue.

In October 2021, Davila Construction launched the project to build the performing arts theater and aquatics center.

Last February, before officials shut down the construction project, a district report showed Davila Construction was requesting the performing arts theater’s completion date be pushed from July 21 to Dec. 28 while the aquatics center’s completion date be changed from April 14 to Sept. 19.

Officials haven’t announced a new timetable.