YOU ARE HERE: LAT HomeCollections

Countywide Focus

County Gives Notice of Default to Builder

November 11, 1994|JEFF McDONALD

The contracting firm hired to build a new medical examiner's facility at the Ventura County Medical Center has been sent a notice of default by county supervisors, who are concerned that workers have not shown up at the construction site in weeks.

The notice was sent to New York Construction Inc. of Tarzana, which was awarded the $1.4-million contract to build the center earlier this year.

"It's more than just being behind schedule," Public Works Director Arthur E. Goulet said. "They have not been on the job site in quite some time."

Specifically, the notice of default approved by supervisors Tuesday complains that the company has failed to meet its obligation to submit a completion schedule, drawings and a written program detailing other aspects of the project, Goulet said.

"Our theory is that they're undercapitalized," he said. "They haven't been paying their bills to their subcontractors."

Under terms of the agreement, the American Claims Co. is liable for any losses the county incurs as a result of New York Construction's failure to complete the work, Goulet said. No one at New York Construction Inc. was available for comment late Wednesday.

Both companies have five days to respond to the board's action, Goulet added. If New York Construction defaults on the agreement, the board would seek a new contractor to finish the project, a process that could delay construction for weeks.

Board members unanimously approved the request to send the notice of default.

"Even though this is a delay, I want to make sure we have the best building possible" when it is completed, Supervisor Susan K. Lacey said.

Los Angeles Times Articles