‘There ought to be consequences’: This Houston man is suing the state over nearby roadwork that has dragged on for 10 years, costing him customers and a business

State charges, then refunds, road contractors for cost of delays

KHOU reported that when a roadwork project is past due, the state is within its right to charge the contractor damages. In the case of the roadwork outside Edwards’ business, those damages amount to $1.7 million.

But as the news outlet discovered, as soon as TxDOT charges contractors for these damages, it regularly reverses course and waives the costs, crediting money back to the same contractors.

In the past three years, TxDOT charged roadwork contractors $88 million in damages, but credited them back $39 million. In some cases, the credits were almost equal to the damages, essentially negating the cost to contractors.

“There ought to be consequences,” said Adrian Shelley of the government watchdog group Public Citizen. “If there’s no consequences for delays, they’re going to keep happening, right? It’s that simple."

TxDOT Executive Director Marc Williams told KHOU that contractors are not being let off the hook, but that contractors dispute the damages, claiming legitimate reasons for delays, like bad weather.

“We work very hard to hold those contractors accountable,” he said. “We want the projects … to be done right, to be done on time, but we also are fair.”

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What can small business owners do?

But Edwards doesn’t think TxDOT is being fair to business owners.

“I don’t think it’s acceptable at all,” he said.

In other parts of Texas, city councils offer financial assistance to business owners affected by construction.

San Antonio City Council has earmarked $1.4 million for businesses in construction zones to help them with advertising and operating costs — during and after construction.

For small businesses across the U.S., the Small Business Anti-Displacement Network offers tools and resources to help owners stay afloat, including advice on filing for tax credits and incentives and information on commercial tenant protections.

Small business owners can also reach out to their local community organizations and business development councils for support and to organize cross-promotional activities to keep the community aware that the business is open while construction continues.