Broward County Commission Regular Meeting
Director's Name: Leonard Vialpando
Department: Public Works and Environmental Services
Division: Water & Wastewater Engineering
Information
Requested Action
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MOTION TO APPROVE termination for cause of the Contract between Broward County and R.J. Sullivan Corp. for High Service Pump Stations and Ground Storage Tanks project Bid/Contract No. PNC2114505C1; and authorize the Director of Water and Wastewater Engineering Division to provide notice of termination pursuant to the Contract; and authorize the Office of the County Attorney to take any and all legal action necessary to complete the project and recover any amounts owed by R.J. Sullivan Corp. under the Contract. (Commission Districts 6 and 8)
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Why Action is Necessary
Board approval is required to terminate for cause pursuant to Article 15 of the Contract’s General Conditions and Broward County Procurement Code, Section 21.59.
What Action Accomplishes
Terminates the Contract for cause, authorizes Director of Water and Wastewater Engineering Division to provide notice of same, and authorizes the Office of the County Attorney to take any legal action necessary to complete the project and recover any amounts owed by R.J. Sullivan under the Contract.
Goal Related Icon(s)
☐County Commission
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Previous Action Taken
None taken.
Summary Explanation/Background
THE PUBLIC WORKS AND ENVIRONMENTAL SERVICES DEPARTMENT AND THE WATER AND WASTEWATER SERVICES ENGINEERING DIVISION RECOMMEND APPROVAL OF THE ABOVE MOTION.
On March 20, 2018 (Item No. 32), Broward County (County) and R.J. Sullivan Corp. (R.J. Sullivan) entered into Contract PNC2114505C1 for High Service Pump Stations and Ground Storage Tanks (Contract) construction in the amount of $19,790,000, including allowances totaling $950,000 (Exhibit 1).
On November 2, 2022, County issued a Certificate of Substantial Completion for the portion of the project located at the 1B1 Facility.
However, R.J. Sullivan did not achieve Substantial Completion for the full project scope within the time for performance required by the Contract.
On January 31, 2025, Water and Wastewater Services (WWS) and R.J. Sullivan met to discuss a proposed plan to complete the remaining project scope. R.J. Sullivan submitted a schedule committing to achieving Substantial Completion by June 6, 2025. However, R.J. Sullivan failed to achieve Substantial Completion by that date. WWS thereafter held multiple meetings and issued follow-up communications requesting recovery plans demonstrating measurable progress. Despite these efforts, RJ Sullivan failed to produce clear evidence of sufficient progress toward completion of the Work.
On November 14, 2025, WWS issued a Notice of Potential Liquidated Damages (Exhibit 2) to R.J. Sullivan pursuant to Article 3.3 of the Contract for failure to comply with the Contract’s time for performance. The Notice of Potential Liquidated Damages requested submission of a recovery (make-up) schedule within five business days. R.J. Sullivan failed to provide the requested response.
On February 25, 2026, WWS issued a ten-day Notice to Cure (Exhibit 3) to R.J. Sullivan pursuant Article 15.1 of the Contract, citing its failure to perform the Work in compliance with the Contract’s schedule and its failure to provide an adequate recovery plan.
On March 16, 2026, WWS received an email from Friedman Legal, as counsel for R.J. Sullivan’s surety, Continental Casualty Company, transmitting RJ Sullivan’s Voluntary Letter of Default and Termination (Exhibit 4), in which R.J. Sullivan advised it was financially unable to complete performance of the Work and declared default.
As of March 16, 2026, R.J. Sullivan was 1,324 days beyond the Contract’s required time for Substantial Completion and had made negligible progress toward such completion. Accordingly, pursuant to Article 3.3 of the Contract, $5,958,000 in Liquidated Damages has accrued. Therefore, WWS recommends termination for cause of the Contract.
If approved, this item will terminate the Contract for cause, authorize the Director of Water and Wastewater Engineering Division (the Contract Administrator) to issue notice of same, and authorize the Office of the County Attorney to take any legal action necessary to complete the project and recover the amounts owed by R.J. Sullivan under the Contract.
All dollar amounts referenced in this agenda item have been rounded to the nearest whole dollar.
Source of Additional Information
Alicia Dunne, PE, PMP, Director, Water and Wastewater Engineering Division, (954) 831-0740.
Fiscal Impact
Fiscal Impact/Cost Summary
The total contract amount was $ 20,637,550, including $847,550 in 40 change orders. To date, R.J. Sullivan Corp. has been compensated $19,402,987. The remaining balance of $993,105, which includes a balance of $370,902 for incomplete Work and allowances of $622,203, will be credited back to County. County currently holds retainage in the amount of $241,458 and $5,958,000 in Liquidated Damages have accrued.