A Texas general contractor appears to have defaulted on numerous projects, with bonding companies and local officials taking control of water plant expansions and school renovation projects across a swath of the Lone Star State.
The Guarantee Company of North America USA recently took over an $8.3-million water plant project in the Texas town of San Juan from Texas Descon and now plans to bid the work out again.
The bonding company, in a complaint in federal court, argued that Texas Descon took in more than half a million dollars from the city of San Juan for the water plant project, yet let bills from its subs and suppliers pile up, despite being urged by the bonding company to pay.
The project was just half built when work stopped.
The surety argued it faced similar issues with Texas Descon’s work on a school project in another Texas town, San Diego.
“With Texas Descon failing to use contract proceeds from the City and the District to pay its subcontractors and suppliers, GCNA anticipates that it will receive additional claims against the payment bonds” the bonding company argued in its court complaint.
Guarantee Co. said it took action against Texas Descon after the McAllen-based contractor failed to put up $1.2 million in collateral following deadlines that came and went for paying its subcontractors.
According to its website, Texas Descon, L.P. specializes in commercial and industrial construction throughout all of South Texas and the U.S.
Company officials could not be reached for comment.
Texas Descon has also lost control of millions of dollars more in other contracts in an array of Texas towns and cities, including a $13-million water plant expansion in the town of Edinburg and renovation projects at four different Texas schools.
In the case of the Edinburg water plant, surety Hanover Insurance Co. took over the project and has agreed to help find a new contractor.