CITY CONTROLLER TO WITHHOLD $800,000 FROM CONSTRUCTION COMPANY!

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The Houston City Controller’s Audit Division has recovered over $800,000 in overcharges and unsupported costs at the Hobby Airport New East Concourse construction project. The Construction Contract Performance Audit analyzed Phase One of the Hobby project; Phases Two and Three of the project continue to be analyzed by the Audit Division. The new East Concourse opened to passengers in July 2010.

Clark Construction Group-Texas, LP, was the lead contractor of the Hobby project.
“Construction audits are a major undertaking for our Audit Division,” says City Controller Ronald Green. “The City of Houston has numerous construction contracts amounting to hundreds of millions of dollars annually-at HAS as well as the City’s utility system, parks, libraries and many other City facilities. Obviously, these are significant and complicated projects involving thousands of line items. As history indicates, there is ample room in these large contracts for erroneous and/or mistaken charges. This particular audit demonstrates how different branches within the city government can collaborate and bring about a successful outcome for the benefit of the citizens.”

The Hobby Airport East Concourse construction costs totals $65.7 million. Clark Construction has been notified that the City intends to keep $801,593 of the $2,145,240 held in retainage.

 
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Ronald C. Green was elected Houston City Controller in December 2009, after serving three terms as a Council Member At Large on Houston’s City Council where he also served as Chair of the Budget and Fiscal Affairs Committee. He was unopposed for his second term as City Controller which began January 2012. Green serves on two National League of Cities committees: the 2013 Community and Economic Development Steering Committee and the Finance, Administration and Intergovernmental Relations (FAIR) Policy and Advocacy Committee.