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Cobb Mechanical Contractors, Issue No. 1

August 2002

The Contractors Critic
Cobb MEchanical Contractors

Reporting on Safety, Productivity, and Honesty in the Construction Industry.

Poor Work, Litigation & Bad Debt

FAULTY CONSTRUCTION JOB AT THE MONTROSE
COUNTY JUSTICE CENTER RUNS OVER BUDGET

The Montrose Board of County Commissioners probably thought their justice center construction job would run smoothly after they hired Cobb Mechanical to install the heating and cooling systems. But more than a year after the $16 million justice center opened, it was still plagued with uncorrected problems.

"A laundry list of defects surfaced at the justice center almost immediately after it opened," said the Montrose Daily Press, in a January 14, 2000 article, include[ing], "A malfunctioning electrical system that has caused at least one power outage... thermostats that fail to regulate heat and air conditioning ... electronic jail doors that do not operate properly. A vent over a dishwasher in the jail’s kitchen that isn’t large enough to draw out steam."

The county responded, in part, by retaining over $143,000 in payments from the general contractor, while they continue their yearlong wait to get the repair work done. Brian Chaffee, an architect with the Fentress Braddurn firm of Denver, who were the lead architects on the job, said, "The lengthy delay in correcting the building problems is unusual."

And to add insult to injury, according to the article, Cobb Mechanical requested an additional $504,383 to cover their cost overruns on the heating and cooling system contract. Cobb’s response in part was, "If there was a problem we certainly were not aware of it and doubt seriously that it had anything to do with our workmanship. "

COBB MECHANICAL CONTRACTORS IS DISBARRED FOR VIOLATING CONTRACTING LAWS AND REGULATIONS

COBB MECHANICAL CONTRACTORS V STATE OF COLORADO

Cobb Mechanical Contractors had been disbarred just a few years before the Pueblo Convention Center went out to bid. The Federal General Services Administration had placed Cobb Mechanical Contractors on the "List of Parties Excluded from Federal Procurement ... Programs," after the federal Department of Labor brought an action against Cobb Mechanical Contractors. Part of the settlement between Cobb and the Department of Labor was that Cobb would be debarred.

But what Cobb Mechanical Contractors didn’t anticipate, was that the State of Colorado would enact its own debarment laws against lawbreaking contractors. The state law automatically debarred any contractor who was on the exclusion list maintained by the federal government. So Cobb Mechanical Contractors was out of luck when it came to bidding on state contracts, also. They had ample opportunity to present its case at an administrative hearing prior to being disbarred by the state. But as the state later told the court, "...the state Purchasing Director did not find [Cobb’s] arguments and evidence persuasive..." at the hearing and Cobb Mechanical Contractors was disbarred.

Rather than take their lumps for getting caught violating federal law and wait out their disbarment, Cobb Mechanical Contractors decided to sue the State of Colorado. They filed suit, but the case was dismissed within months.

As of publication, Cobb has not made any suggestions or refuted any of the information in this publication.

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