BROWNSVILLE, Texas (March 6, 2017) – The City of Brownsville has issued the following statement regarding claims for payment for the Southmost Hike & Bike Trail project:
“On September 16, 2014, the City of Brownsville awarded a contract to ARRCO General Construction Group, LLC for the Southmost Hike & Bike Trail project.
After the contract was awarded, the City of Brownsville learned that a performance bond provided on the project had been forged. Following this discovery, ARRCO was terminated on the project and the matter was referred to the District Attorney’s Office for criminal investigation.
Under the procedures which were in effect on this project, the general contractor, ARRCO, was required to identify both itself and every subcontractor which was to perform work on the project. Throughout the duration of most of this project, Mr. Jorge Contla presented himself as the project manager for ARRCO, and not as an ‘independent subcontractor.’ In addition, he was seen on the project site wearing ARRCO equipment and driving an ARRCO vehicle.
After performance issues arose with ARRCO, Mr. Contla and other workers came forward, for the first time, identifying themselves as independent subcontractors who had not been paid. Sufficient documentation to substantiate these claims have not been provided to the City of Brownsville.
The City of Brownsville has a number of valid concerns regarding the claims for payment which have been made on this project. As this matter is likely the subject of anticipated litigation, the City of Brownsville will not offer additional comments. The City will, however, offer the following documents which directly relate to this issue.”
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