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Friday announcement possible from Hougard


Clients await word of the contractor's fate

By Ray Barrington
News-Chronicle

As attorneys for Geo. M. Hougard & Sons Inc. continued to negotiate for the contractor's future, those in charge of projects Hougard was working on tried to get around the lack of their contractor.

All sides might know more Friday, said Ken Calewarts, attorney for Hougard. "Negotiations are continuing, and we hope by the end of this week we'll know what we're going to do," said Calewarts, who would not say what the negotiations were about.

"Meetings are ongoing, we're supposed to meet with people from out of town tomorrow, and we hope by Friday afternoon to release some type of statement."

Hougard laid off 80 employees and shut down operations suddenly Friday, without saying why they were doing so except for a mention by Calewarts of "economic downturn." The company has been in business for 105 years. It has not filed for bankruptcy, Calewarts said earlier this week.

One of the larger projects Hougard was working on was the Kress Family Library in De Pere. Brown County Library director Pat LaViolette said she was still optimistic the library could open as scheduled in late July.

"Right now, it's just kind of wait and see," she said. "At this point in time, we haven't changed the date. The dedication is still set for July 29, but we haven't printed invitations or anything."

Dean Gazza, interim facilities director for Brown County, said he was also waiting for a Friday announcement. What happens from that announcement - a permanent shutdown or a revival of the company - will decide the county's next move.

"We understand they're working with financial lawyers to go into reorganization, and we're supposed to be notified in the next couple of days," he said.

For now, Gazza said, subcontractors are being allowed on the site, which is nearing completion.

"We let them work but regulate them, basically record who's coming and going," he said.

If Hougard has to shut down, the county would deal with its performance bonding company, which would take over the site.

"We would initiate the bond and then work with the bonding company to complete work, and there are a couple of options there," Gazza said.

The bonding company, after assuming the contract, has several options. It could arrange for a new contractor to complete the facilities, could complete the construction itself through agents, use existing subcontractors or even ask for new bids, a choice Gazza said was unlikely because of the nearly-complete state of the project.

The county faces a similar situation with a waste-transfer station being built in Hobart.


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