The Tennessee Board of Regents is withholding the final pay- ment to the contractors who built the University of Memphis’ $53 million dorm, which was more than six months late. U of M officials and Rentenbach Constructors Incorporated broke ground on the dorm in 2013, expecting it to be finished fall 2015.
This is not the first time Tennessee officials have butted heads with the contractors of the University of Memphis’ new $53 million residence hall.
Rentenbach Constructors Incorporated, the Knoxville-based company who was the lead for Centennial Place, was unable to finish the new dorm on time. This lead the Tennessee Board of Regents to withhold millions of dollars in a final payment to the company.
This is not the first time the company has not met deadline with the state.
Rentenbach failed to complete an over budget parking garage for East Tennessee State University just a few years ago, according to reports in the Johnson City Press.
Construction on the garage began in July 2012 and was expected to be finished on time for the 2013 fall semester. However, the construction company faced several setbacks including bad weather, a shortage of materials and an unexpected amount of dirt that had to be removed and replaced,
East Tennessee State University doubled student fees in 2011 to pay for the garage, which at that point was estimated to only cost around $23 million.
However, the garage went over the projected cost by more than $3 million. It eventually opened in March 2014, seven months after the expected date.
Rentenbach’s contract with the Tennessee Board of Regents speci- fied a $2,500 penalty for each day late, but they will likely settle for a smaller amount.
The same contractor also fell behind schedule on a community center in Johnson City, Tennessee, according to reports also in the Johnson City Press.
The center broke ground in Oct. 2010 and was set to be completed in April 2012. However, the project fell behind schedule due to bad weather. Construction was completed in Dec. 2012, eight months after the original deadline.
The project’s budget was about $15 million, which included design, site preparation, furnishings and other equipment and materials.
Centennial Place, which opened to students Tuesday, was similar to East Tennessee’s parking garage, as the dorm was more than six months behind schedule.
TBR, who recently stated they are withholding up to $2 million in payment for the construction of the U of M’s new dorm, said Rentenbach was behind schedule months ago.
Currently, TBR is calculating the amount of money they would have earned if the project had been completed as scheduled, and could charge Rentenbach what’s known as liquidated damages.
While construction was right on budget, Rentenbach agreed to pay late fees in case the project could not be completed on time. The contractor may also be subjected to a $1,000 charge for each day the U of M project was late. Although bad weather was a factor in the construction delay, Rentenbach had gone over the amount of inclement weather days they were contractually allowed.
While the dorm was ready for students to move in, the building is still not finished. There are parts, such as a wall that is not yet painted or scuffed wood, which still needs to be finished.
According to Dick Tracy, TBR’s executive director of facilities development, there are no plans for a lawsuit.
Rentenbach could not be reached despite calls to both the Chattanooga and Knoxville offices, and an email to the Knoxville office.
