Robstown Independent School District reached a settlement earlier last week with The Hanover Insurance Company in the amount of $3.5 million. The settlement was reached after nearly two years of delay, after default of the original contracting company, Texas Descon, LP. The Hanover Insurance Company provided the performance bond for the Project.
In November of 2012, a bond was passed in the amount of $12.5 million to complete the Additions and Renovations Project for Robstown High School. The Project was originally contracted by Texas Descon for $11.3 million. In September of 2015, Texas Descon defaulted on the Project, leaving it to Hanover, their bonding company to arrange for completion.
Hanover was not able to provide a replacement contractor to the District to complete the Project, and litigation resulted between the District and Hanover concerning the amount of liability Hanover had under the performance bond. After a little over a year in litigation, mediation of the case resulted in a settlement of $3.5 million to assist the District in completing the Project. When added to the original $11.3 million contracted with Texas Descon, of which nearly $3.2 million was paid for the portion of the work completed, the District was able to cover much of the increased costs in completing the Project due to the default by Texas Descon.
“Our students have been very patient during this transition. We are so excited to provide a campus environment that will be conducive to learning," said Robstown Superintendent Dr. Maria Vidaurri. "The Board of Trustees and myself are committed to creating a collegiate atmosphere at Robstown Early College High School, where students will receive quality education. The opportunity to graduate with 60 credit hours or an Associate’s Degree is offered at no cost to all students enrolled with Robstown ISD.”
The Additions and Renovations Project has been modified and is underway with anticipated completion by the end of 2017.