Delays caused by lack of performance bond may result in city reallocating work.
The contractor recruited by the city of Peru to tear down the old electric powerhouse on Water Street has not begun and appears unwilling to begin.
The city council learned Wednesday from Mayor Scott Harl that A-Unified LLC of Cincinnati, Ohio wants to change the contract it signed, and has not provided a performance bond for the project.
Harl and Doug Schweickert, the city’s attorney, met with the company last week, they said. Harl and Schweickert said they were unwilling to change any contract details.
The company had 180 days since they signed the contract Jan. 24 to finish the job. The city is not paying the company, because A-Unified plans to make money salvaging metals, materials and equipment.
“The biggest problem here is A-Unified is having difficulty getting a performance bond,” Schweickert said. Harl, Schweickert and Jim Potthoff, electric supervisor, said the company is hard to reach and rarely returns phone calls.
The company is contracted also to remove asbestos. The council agreed that Harl should give A-Unified a deadline of seven days for a performance bond, or the city will seek another contractor.
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