Peru settles payment dispute with sewer contractor

The storm and sanitary sewer separation project that had an older neighborhood in Peru torn up for two years ended nearly one year ago, but the dispute between the city and the contractor about how much the city should pay has just been settled.

The city council Wednesday night agreed to make one last $375,000 payment to T.J. Lambrecht Construction and to call the project completed.  The city refused to sign off on the job because of what Mayor Scott Harl called deficient work.  There were problems with catch basins settling and manholes.

The $6.6 million project also included many unexpected costs.

Harl says with the settlement they aren’t paying as much as Lambrecht was asking and the local contractors get paid.  The total cost to the city is less than $6.1 million and they received extra materials such as water mains.