Failing to Construct Utah Valley’s Timpanogos Highway The Timpanogos Highway (or SR-92) was scheduled to be finished months ago. The project was meant to bring a faster, more navigable highway for commuters trying to reach the Highland, Alpine area without having to travel through Pleasant Grove. The project was scheduled to be completed in May of 2011. It is now well over a year since then and there are still signs of construction on the road.
What this Means for the Company Every day since the deadline costs the company extra money. The Utah construction company working on the highway is required to pay fifteen thousand dollars per day that the project isn’t complete. It’s a part of the contract, a part that has become all too common amongst construction companies as of late. Construction contracts regularly come complete with a fail-safe clause. Companies that cannot finish their contract in the time agreed upon are required to pay a penalty price every day until the project is complete. The clause is effective too. Most companies don’t want to lose that kind of money on a project that could potentially take months more to complete. Every month that goes by costs them hundreds of thousands of dollars in extra cash. Let three months pass by and they have to pay well over a million dollars back to their employer. The price is predetermined by the employer.
How the Bidding Process Works This person, company or entity is entitled to choose the terms of the contract and then offer it to the masses. Auctions are normally held to allow multiple Utah construction companies together to bid for the contract. This bidding process is unique to all others. Unlike most auctions, the lowest bidder often gets the contract. Employers want the most work for the smallest fare. It makes good business sense, but it often results in Utah construction companies undervaluing their work and chasing impossible deadlines. The deadline of a project is largely influenced by the needs of the employer. They pick a time in the future that they think this project should be finished.
After consulting with experts, they often set a date that is do-able, if only minor setbacks were to occur. In a perfect world, they could complete it in that time. Unfortunately, this isn’t a perfect world. Unexpected problems happen all the time and companies find themselves weeks to months behind schedule.
Unprecedented Difficulties The Utah Department of Transportation (UDoT) reported “unprecedented” difficulties in December of last year. Things like cracks in concrete and gaps beneath the road plagued the construction, pushing their already extended completion date further still. They would build and build until they could finally see the light of a finish line, only to have their floors cave in as it were, and fall deeper than they were before. Because of all the setbacks and the terms of the contract, not only have the citizens suffered, but so has UDoT. They lose money daily and there’s nothing they can do about it. They agreed to the terms of the contract and have to abide by it. In a world where the employer’s needs are what determine whether or not you work, many Utah Construction Companies like UDoT find themselves accepting agreements they know they’ll never be able to accomplish on time. They need the work and are willing to take it. They can only hope that things won’t go horribly wrong.