Euless Moves to Fire the Contractor on Its Unfinished $502,250 Park Restroom

Euless hired a contractor a year ago to build a restroom and storage building at The Parks at Texas Star. The building is still not finished, and on Tuesday the city council will vote on whether to fire the contractor and call on its bonding company to finish the job.

The council's regular session starts at 7 p.m. Tuesday, Oct. 27, at City Hall, 201 N. Ector Drive, according to the posted agenda. Item 9 is Resolution No. 26-1704. It would terminate for cause the contract with First Construction LLC and declare a contractor default under the company's performance bond.

A $502,250 job

According to the agenda packet, the council awarded the bid to First Construction, of Weatherford, on Sept. 23, 2025. The two sides signed the contract on Oct. 24, 2025. The building was to go up at The Parks at Texas Star Phase 8, 1501 S. Pipeline Road, for $502,250.

Parks and Community Services Director Duane Strawn wrote in his memo that First Construction was "not only the low bidder" but was also vetted by city staff and the project architect. Over the next 12 months, he wrote, the city, the architect and the contractor "had multiple disagreements over the interpretation of plans, specifications, and bid documents." He listed "multiple periods of stopped work, multiple subcontractors going unpaid, and multiple time extensions."

The resolution lays out the timeline. The contract called for substantial completion by April 1, 2026. That date was pushed to July 6, then to Oct. 2 at the contractor's request. The resolution says the contractor stopped work from about May 28 to about July 29. It says the contractor did not meet a July 13 deadline to remobilize and provide a recovery schedule. The contract also sets liquidated damages of $500 for each day the building is late past the extended date.

South Euless Elementary School, 2018. Photo: QuesterMark / Wikimedia Commons, CC BY-SA 2.0.

The money dispute

The city says it has paid every amount the architect, Williams Tharp Architects, certified for payment, a total of $368,870.85. It has also sent $873.47 in statutory interest on one pay application, "without admission of liability."

The contractor wants more. The resolution lists a $72,578 change order for electrical feeder conductors and $87,144.17 in cost items in another change order. The city has told the contractor it considers those amounts to be in "bona fide dispute" and is handling them as claims under the contract.

In a letter dated Aug. 27, the contractor's lawyer said the company would suspend work on Sept. 6 unless the city paid the $87,144.17. The city attorney answered on Sept. 3 that no payment was in default and that a suspension would be treated as a substantial breach. According to the resolution, the contractor's lawyer confirmed by email that all work stopped Sept. 18, and no crew or superintendent has been on the site since.

After a site visit Sept. 24 and 25, the architect reported the building was about 75 to 80% complete. The architect also reported that some installed work did not match the plans and had not been fixed, that perimeter fencing was not secured and that the contractor had not provided current insurance certificates. The certificates on file showed its liability, auto and workers' compensation coverage had expired.

Two unpaid-bill claims have also come in. A subcontractor, Rocky Duron & Associates, says it is owed $16,785 for toilet partitions and related work. A supplier, City Electric Supply, has claimed $6,299.52 for electrical supplies sold to the electrical subcontractor. The city says it does not concede either claim.

What the bond is for

As Chapter 2253 of the Texas Government Code requires, First Construction furnished a performance bond and a payment bond. Both were issued by SureTec Insurance Company, each for $502,250. The city sent a notice of default on Oct. 1 and held a conference on Oct. 8 that included the contractor, its lawyer and the surety's lawyer. The resolution says the defaults were not cured.

If the council approves, the city would pay the remaining balance, which it calculates at $133,379.15, to the surety or to a contractor the surety picks to finish the building. That figure is made up of $92,393.50 in unpaid contract money and $40,985.65 in retainage, before any liquidated damages or other deductions. Any deal that would cost the city more than that balance would have to come back to the council.

The packet presents only the city's side. First Construction's account appears only as the resolution describes it.

A public restroom is a small thing, but it is still the taxpayers' money. Performance bonds are there so a city doesn't end up paying twice for the same job. Residents can speak during public comments Tuesday night.

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