Update: Highway Officials Await Proposed Fixes From I-30 Widening Contractor

A Google Street View image of the construction on Interstate 30 in Saline County in December 2023 (© Google)

Update: The Arkansas Highway Commission is giving Johnson Bros. Corp. of Roanoke, Texas, a chance to address performance issues on the delayed Interstate 30 widening project in Saline County.

The commission has agreed to table a vote on whether to accept a recommendation from the Department of Transportation to hold the company in default of contract, according to Pulaski County Circuit Court filings. A vote won’t take place until Johnson Bros. gets a 10-day opportunity to respond and propose fixes to its alleged shortcomings.

Lawyers for Johnson Bros. had been seeking a restraining order to prevent the company from being held in default, but the Highway Commission’s decision to table the vote rendered the petition moot. The lawyers filed a motion to withdraw the petition Wednesday.

A complaint filed Monday on the company’s behalf alleges that the Department of Transportation did not follow contract specifications with its default recommendation because it failed to identify any specific delay, neglect or default for the company. The complaint also notes that the company wasn’t given 10 days to comply with written notice of the recommendation.

The complaint accused the department of making “a drastic and rash decision in reaction to unfavorable public comments by prominent citizens.” It points to media reports about project delays causing headaches for business owners and motorists.

The Department of Transportation is illegally penalizing Johnson Bros. by withholding liquidated damages, the complaint alleges, which is shrinking the company’s cash flow and hindering its ability to take on future projects.

Johnson Bros. claims that it’s in full compliance with the construction schedule and will have the project “substantially complete” within the approved time frame, though it has a claim pending with the Arkansas Claims Commission over extension requests being denied.

Original story: The Arkansas Department of Transportation on Tuesday recommended placing Johnson Bros. Corp. of Roanoke, Texas, in default of contract over delays to the Interstate 30 widening project in Saline County.

The state awarded the $187.3 million contract to Johnson Bros. in May 2019 with completion targeted in November 2022, but the date was pushed back to April 2023. After that date passed, the firm moved its estimated completion date to January 2025.

The contract calls for 5.5 miles of I-30, from U.S. 70 in Saline County to Sevier Street in Benton, to be widened to six lanes. The Department of Transportation said change orders — formal proposals to modify the project’s scope, specifications, or requirements — were granted due to “unforeseen field conditions.”

The complexity of the project, cement shortages, labor issues and weather events have also been reported as factors for the delays.

KARK reported that the state has penalized Johnson Bros. $77,750 daily for a total of more than $22.5 million since the company missed the April 2023 deadline. If the company meets its latest projected completion date, the penalties will total nearly $50 million.

Johnson Bros., a subsidiary of Southland Holdings LLC of Grapevine, Texas, did not respond to a request for comment.

The contract ranked No. 2 on Arkansas Business’ list of the most valuable highway contracts that were under construction in 2023, behind only the $540 million package awarded for the I-30 Crossing project.

The Department of Transportation said it believes that placing Johnson Bros. in default of contract is necessary to ensure the project “is progressed to completion in a timely manner.” A department spokesperson didn’t immediately respond to questions about whether Johnson Bros. could be removed from the project.

“This is unprecedented territory for us, and it’s not something we arrived at lightly,” Lorie Tudor, director of the department, said in a statement. “This is in the best interest of those who are affected daily by this work zone.”

An array of factors could affect how the state proceeds, according to Little Rock attorney Skip Davidson, founder of Davidson Law Firm. The state could require Johnson Bros. to accelerate its work by adding personnel or bringing in extra equipment. If Johnson Bros. is unable to do that, Davidson said, the state could bring in a second contractor to provide extra manpower — if there’s room.

“You can only get so many people on a job site,” Davidson said.

Such state projects are required to be backed by a corporate surety bonding company. Davidson said that if a contractor fails to perform, the state could terminate the contract and the surety company would step in and hire a replacement. Whether the contractor has faced project redesigns or work restrictions, such as limitations on lane closures, would likely play into that decision.

“At some point, the state would have to make a decision about whether or not it’s best to stay with this contractor or default-terminate the project and hire someone else,” he said.

Johnson Bros. has a period of time to respond to the department’s recommendation. The Arkansas Highway Commission will consider the recommendation and any proposed fixes by Johnson Bros. before making a final decision.

“The ultimate goal is to complete this project as expeditiously as possible and provide a safe road for the traveling public,” Alec Farmer, chair of the commission, said in a statement.