Teasley Lane

Construction could resume soon on Teasley Lane after the Texas Department of Transportation and the project’s bond holder, Berkshire Hathaway, recently came to an agreement with Zachry Construction Corp. of San Antonio.

For the widening of FM2181/Teasley Lane, there is good news and bad news.

The good news is that Zachry Construction Corp. of San Antonio will resume the work. The agreement between the Texas Department of Transportation and Berkshire Hathaway, the bond holder for the job, and Zachry (Berkshire’s subcontractor), should be finalized Nov. 7.

Zachry is mobilizing crews in anticipation of receiving that final contract, said Tara Snowden, Zachry’s vice president for public and government affairs.

“Our guys are ready,” she said.

The bad news is that the job effectively must begin again. The city’s transportation consultant, John Polster, told council members during a Mobility Committee meeting last week that part of the redo is that the city did not accept some materials placed by the previous contractor.

Residents and motorists first began navigating around the orange barrels in November 2017, when Munilla Construction Management began the $35 million project. The company got the contract to widen the two-lane road to a six-lane divided roadway with a plan to finish in March 2020.

MCM was also the general contractor for a Miami pedestrian bridge that collapsed during construction and killed six people in March 2018. Founded in 1983, the company has since filed for bankruptcy protection and has been renamed Magnum Construction Management.

TxDOT pulled the plug on MCM’s contract to widen FM2181 on Jan. 24. Construction was more than 40% behind schedule, and there were problems with barricades and a deficit with payroll. Subcontractors were also reporting to TxDOT that they hadn’t been paid, officials said.

The job was estimated to be about 20% complete, TxDOT officials said at the time.

The company was sent a notice in early January along with a chance to comply but did not. MCM disputes the contract’s termination.

“It is MCM’s position that the company was wrongfully terminated and reserves its rights under the contract,” wrote Mike Hernandez, MCM representative, in an email.

The company has through February 2020 to file a claim.

TxDOT turned to MCM’s surety bond holder, Berkshire Hathaway, to finish the job. The cost to complete the project rose to $37.6 million, TxDOT spokeswoman Emily McCann said.

Polster said Zachry will get more than 500 days to finish the job. But TxDOT officials don’t have an official completion date to share yet, McCann said.

Either way, residents and motorists can likely expect the orange barrels to remain on FM2181 and Teasley Lane until early 2022.

PEGGY HEINKEL-WOLFE can be reached at 940-566-6881 and via Twitter at


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