School expansion project put on hold after construction company goes out of business

Friday, a big construction project at a school in north Columbia is on hold after the company paid to do the work has gone out of business.

JC Industries was working on a kitchen expansion at Lange Middle School when the company went out of business, according to officials.

Columbia Public Schools said the work is expected to be completed by the beginning of next school year, which is only six months away.

Michelle Baumstark with CPS said she believes that is enough time to find a new contractor and finish the project.

“So far, there’s only been some minimal work that has been done out there, some dirt work, there’s been some concrete that has been put down, but we’re not under roof yet,” Baumstark said. “But we don’t have any significant construction that has taken place there, so we’re at the very beginning of the project.”

Baumstark said JC Industries was the lowest bidder and the school district has used the company for previous projects.

So far, CPS has paid the company $150,000 for the work it has completed in about a month’s time. Baumstark said the total project will cost $1.8 million. It is part of a $50 million bond that was approved by voters in the school district in April 2012.

Any time public schools use bond funds to pay for projects, a surety bond company back the bonds and ensures the project gets done and the money is paid.

“That’s put us in a predicament where now we need to work with our surety bond company to determine the next steps to identify another contractor to complete the project and to work with any subs that may have been impacted by the business going under,” Baumstark said.

The JC Industries website lists the Lange Middle School kitchen addition on its “Work-In-Progress Projects” page. According to the website, some work planned at the school included removing and replacing some ceilings and lights, new concrete block and brick addition, kitchen equipment, electrical and plumbing work among other things.

The website also said the company was doing some storm sewer upgrades for Jefferson City. The Jefferson City Administrator said the city is working with a surety bond company as well to figure out if it needs to hire another construction company. JC Industries has not told them they are going out of business, he said.