HomeMy WebLinkAboutIR 8316 INFORMAL REPORT TO CITY COUNCIL MEMBERS NO. 8316
PA_T&,Vt. Date: April 24, 2001
To the Mayor and Members of the City Council
Page 1 of 1
SUBJECT: Construction Contract with W.D.D. Construction
On March 20, 2000, the Fort Worth Housing Corporation entered into a contract with W.D.D.
Construction ("W.D.D.") for the construction of a single-family home to be located at 5501 Anderson, Fort
Worth. The contract provided that W.D.D. would complete the home within 120 days or by August 19, 2000.
W.D.D. would be compensated $62,500 for the construction of the home. The contract contained all the
terms common to residential construction such as appliances, landscaping, 2-10 Home Buyers Warranty.
On August 28, 2000, the City of Fort Worth Housing Department notified W.D.D. that the contract
had expired and the home was not completed. On September 8, 2000, the Housing Department faxed W.D.D.
a contract extension. The extension did not change any of the terms in the contract other than extend the term
to September 16, 2000. Ms. Dennis, the president of W.D.D. Construction, responded to the contract
extension with a memo to the Housing Department that stated "This Extension of Contract is totally
unacceptable."
On September 25, 2000, the City submitted an Inspection Report detailing the work that needed to be
completed on the home. On September 29, 2000, W.D.D. submitted a request for payment of all retained
funds even though the home was not completed. On October 3, 2000, the Housing Department sent W.D.D. a
letter that stated that in order to receive the final draw, all work must be completed, this included grading,
attic insulation and 2-10 Warranty, as well as, the items on the punch list.
On October 5, 2000, the Housing Department sent W.D.D. a letter requesting that all work be
completed on the home, as well as the landscaping, On October 6, 2000 a final punch list was completed.
The final punch list was sent to W.D.D. on October 17, 2000. The punch list contained items such as:
bathroom mirrors too small, bathroom mirrors installed too low, mismatched cabinets, bar top in kitchen too
small, saloon doors not installed, exterior door installed incorrectly, no mortar between bricks under
threshold, touch-up paint and caulking needed throughout home, landscaping and missing curtain rods.
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During the week of October 9th, 2000, the Housing Department notified W.D.D. that they were going
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to proceed to close on the home. The City decided to go forward with the closing for two reasons. First, the
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buyers had anticipated moving into the new home by September so they had not renewed their lease at their
prior residence and now they were living with relatives while they waited for the home to be completed.
Secondly, because the home was not completed during the time specified in the contract, the buyers had lost
their interest rate and they did not want to lose their rate again. On October 18, 2000, the Housing
Department closed on the home. On October 19, 2000, W.D.D. came to the residence to install the appliances
and air-conditioning. When Deborah Dennis found that the new homeowners were living in the home, she
became upset and left the residence without installing the appliances and air conditioner or completing the
items on the punch list.
As a result of W.D.D. not installing the air-conditioning and appliances and because the new
homeowners were already living in the home, the Housing Department was forced to purchase appliances and
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS
...........
INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 8316
PATat Date: April 24, 2001
roa> ° To the Mayor and Members of the City Council
Page 2 of 2
fare SUBJECT: Construction Contract with W.D.D. Construction
the air-conditioner. On October 18, 2000, Ms. Dennis sent a letter to Libby Watson requesting her assistance
in resolving the contract. In Ms. Dennis' letter, Ms. Dennis stated that she would complete the items on the
punch list as long as she was paid an additional amount to protect the homeowner's furniture and "the
additional time it will take to work around them." However, even though Ms. Dennis stated that WDD
would complete the home, W.D.D. did not complete the items on the punch list. Therefore, on October 20,
2000, the Housing Department sent W.D.D. a Notice of Default giving W.D.D. fourteen days to cure all
defects. W.D.D. still did not complete the items on the punch list even though the Housing Department
agreed to pay the additional funds to protect the homeowner's furniture. The contract was terminated on
December 14, 2000 after numerous attempts to resolve the issues. The Housing Department hired another
contractor to complete the items on the punch list. The City had retained $6,250 as final payment, however,
the City spent $7,927.61 to complete the home. The following is a breakdown of funds spent to complete the
home:
Complete items on punch list $4,487.52
A/C unit and Installation $1,400.00
Appliances $1,226.00
Home Owner's Warranty 358.10
Total $7,471.52
On March 20, 2001, City Council was briefed on the situation during an executive session. On April
19, 2001, I met with Ms. Dennis to discuss the concerns she brought forth during the City Council meeting on
the third of April. During our meeting, Ms. Dennis did not bring forth any additional or new 'information that
had not been reviewed by the Housing Department, the Legal Department, the City Manager's Office or the
City Council. Therefore, the City will send Ms. Dennis a letter that details the funds the City spent to
complete the home. The letter will also advise Ms Dennis that the City will not pay W.D.D. any of the
retained funds, because the City spent more to complete the home that it had retained. Lastly, the letter will
inform Ms. Dennis that the City will not pursue a claim against W.D.D. Construction for the additional funds
spent to complete the home.
Gary Jackson
City Manager Z
ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS