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Traffic control subcontractor declares bankruptcy

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POLSON — Bad weather or problems with machines could have caused slowdowns on the Skyline Drive project, but no one involved with the project would have considered the primary traffic control subcontractor, Highway Technologies, could disappear. 

But according to a press release from Roland Godan, funds and grant administrator and labor compliance officer for the project, that’s just what happened. 

Highway Technologies went out of business effective 5 p.m. on Friday, May 17, the press release said. In the interest of public safety, Montana Department of Transportation ordered HT not to remove any safety signage from the nearly three dozen projects statewide. Nationwide Highway Technologies employs approximately 1,500 people with about 180 in Montana in the summertime.

The Houston, Texas, company filed for Chapter 11 bankruptcy in Delaware bankruptcy court on May 22, stating their assets at $50 to $100 million and liabilities of from $100 million to $500 million, according to website business-bankruptcies.com/cases/highway-technologies-inc. 

“It was quite a shock for everybody,” Godan said. “Out of nowhere this entirely different tangent just hits you in the head. I just never thought an entire portion of the project would just disappear overnight.” 

Road construction had been put on hold, and shutdown was originally predicted to last from one to three weeks. 

But the good new is contractor LS Jensen had employees who could flag and drive the pilot carry so work could continue on the wall. 

“We actually were really fortunate,” Lake County Commissioner Bill Barron said. “LS Jensen Construction and Ready Mix (the contractor) had employees certified in traffic control.” 

Since LS Jensen is the primary contractor, “It all falls on their shoulders,” Barron explained.

They need to find a primary traffic control company to take over. There aren’t many companies who do this work, especially on HT’s scale. LS Jensen is working on the problem right now and has some verbal commitments, Barron said. 

Both Barron and Godan think the Skyline Project will be back on schedule within a week. 

For locals traveling Skyline Drive, there won’t be much difference. Pilot cars will be running from 7 a.m. to 7 p.m. everyday, and there are flaggers on the job.

It’s in LS Jensen’s best interests to hire another subcontractor since the contract is a contract day contract. That means that the business has a certain number of days to finish the project. The deadline is Sept. 15. If the company goes over that date, each extra day will cost them approximately $3,800. While Highway Technology’s bonding company would probably have to pay that cost, it would take longer for LS Jensen to collect. 

With good weather continuing on into September, Skyline Drive and the adjoining bike path should be completed this construction season, Godan said.

 

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