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Construction company defaults on Lampasas jail project

Posted at 8:53 PM, Feb 05, 2020
and last updated 2020-02-05 21:53:01-05

LAMPASAS, TX — Construction of the new Lampasas jail has come to a screeching halt after the builder abruptly filed for default with the insurance.

Don Kreuger Construction, based in Victoria, Texas, was managing the project.

“We found out that Kreuger had filed for default with the insurance,” said Lampasas County Judge Randy Hoyer.

Lampasas County approved a bond to build this new jail about two years ago.

The bonding company, Travelers Insurance, will pay the subcontractors and hire a new general contractor.

“They had issues unbeknownst to us that caused them to default not only on our project, but on 3 or 4 other projects in the state that they were working on,” said Judge Hoyer.

The County says the project was 90% done when construction stopped.

“Lampasas County has a current jail. It is about 37 beds, and we consequently keep it full, unfortunately,” said Judge Hoyer.

The county averages about 50-70 prisoners at any given time. They pay to house inmates in surrounding communities when the Lampasas jail is full. However, the new facility would have about 112 beds.

They estimate the delay will be another 4 to 6 months.

25 News reached out to the construction company several times. They did not respond as of the time this article was posted.