Baltimore has terminated its $150 million contract with Metra Industries to fix deteriorating infrastructure because of the company’s repeated delays in making salary payments to subcontractors. Consequently, this has also led to Metra Industries being prohibited from conducting business with the city for the following two years. In a response, a lawyer for Metra Industries acknowledged that payments were not made on time.
As reported by WBAL-TV:
It was a unanimous decision made by Baltimore City’s Board of Estimates after an investigation by the Minority and Women’s Business Opportunity Office found Metra repeatedly failed to pay subcontractors on time. The office’s chief, Christopher Lundy, said in one case, payment came more than a year after the work was finished, and only happened after the city got involved.
An attorney for Metra admitted to the late payments.
“We acknowledge that we have not always, Metra has not always paid within the seven-day requirement,” said Venroy July. “But we need some context here. We all know Baltimore City does not always pay its contractors on time.”
The city will now solicit bids for a replacement to the work that was being handled by Metra.