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Navigating Troy’s $550 Million School Bond: Your Rights and Remedies

Residents of Troy, who in November 2022 approved a landmark $550 million school bond for district-wide improvements, have several legal and operational avenues to protect their investment and ensure quality construction amidst rising costs and potential delays. While the Troy School District (TSD) has a planned 10-year timeline for the bond projects, managed by local firm Barton Malow, it’s the specific contractual agreements and vigilant community oversight that will be crucial in the coming years.

Here’s a breakdown of the remedies and oversight mechanisms available to the Troy community:

Legal and Contractual Safeguards

Your primary legal protections are embedded within the construction contracts between the Troy School District and Barton Malow, as well as the laws of Michigan governing public works projects.

  • The Master Contract is Key: The comprehensive construction management agreement between the TSD and Barton Malow is the cornerstone document. This contract outlines the specific terms for handling cost increases, project delays, and quality control. While not readily available on the district’s website, residents have the right to request access to this public document through a Freedom of Information Act (FOIA) request to the Troy School District. Key clauses to examine in this contract would include:
    • Cost Escalation Clauses: These provisions detail how unexpected increases in material and labor costs are managed. They specify whether the contractor or the district bears the financial responsibility and under what circumstances.
    • Delay Damage Clauses: These clauses, sometimes referred to as “liquidated damages,” stipulate any financial penalties the contractor may face for not completing work by the agreed-upon deadlines. Michigan law generally upholds “no-damages-for-delay” clauses, but there are exceptions for delays caused by the owner’s bad faith or active interference.
    • Quality Assurance and Control Specifications: The contract will define the standards of workmanship and materials. It will also outline the processes for inspections, testing, and rectifying any work that does not meet these standards.
    • Dispute Resolution Procedures: This section will detail the agreed-upon method for resolving disagreements between the district and the contractor, which could involve mediation, arbitration, or litigation.
  • State Law Requirements: Michigan law provides a framework for public construction projects. This includes requirements for competitive bidding on contracts over a certain threshold, which the district appears to be following for various bid packages related to the bond. Additionally, state law mandates that an independent audit of the bond funds be conducted upon the completion of all projects. This audit will provide a final accounting of how the $550 million was spent.
  • Performance Bonds: Typically, contractors on public projects of this scale are required to secure performance bonds. This is a form of insurance that protects the school district if the contractor fails to complete the project according to the contract’s terms. If Barton Malow were to default, the bonding company would be obligated to ensure the project’s completion, either by hiring a new contractor or providing the funds to do so.

Operational and Community-Led Oversight

Beyond legal contracts, there are several operational and community-driven ways to ensure the bond projects are proceeding as planned and that the quality of work is high.

  • Public Scrutiny and the Role of the School Board: The Troy School District Board of Education holds ultimate responsibility for overseeing the bond program. Their public meetings are a critical venue for residents to stay informed and voice concerns. The board approves all major contracts and change orders related to the bond projects. Meeting agendas, minutes, and supporting documents, which are available on the district’s website, can provide valuable insights into the progress and any challenges of the construction work.
  • District’s “Bond Status & Updates” Webpage: The Troy School District maintains a dedicated section on its website for the 2022 bond. This is the primary source of official information for residents and includes updates on the phased rollout of the projects (currently in “Series 1”), timelines, and specifics on which schools are slated for improvements. Regularly monitoring this page is a straightforward way to stay informed.
  • No Formal Citizen Oversight Committee, But Community Input is Key: While some Michigan school districts have formal “Bond Oversight Committees” comprised of community members with ongoing authority, the Troy School District utilized a “Facilities Review Committee” during the planning phase of the bond. Although this committee does not have a continuing oversight role, the precedent for community involvement is there. Residents can still play a vital role by:
    • Attending School Board Meetings: This provides a direct forum to ask questions and express concerns to elected officials.
    • Communicating with District Officials: Engaging with the superintendent and other district administrators responsible for the bond implementation can provide clarity and ensure resident concerns are heard.
    • Documenting and Reporting Issues: If residents observe what they believe to be poor quality workmanship or unsafe practices at construction sites, they should document their concerns (with photos, if possible and safe to do so) and report them to both the school district and Barton Malow.
  • Adjusting the Scope of Work: Given the significant increase in construction costs since the bond’s approval, one of the most practical operational remedies is to adjust the scope of the planned projects. The school board, in collaboration with Barton Malow, will likely need to prioritize the most critical upgrades and potentially defer or redesign less essential elements to stay within the $550 million budget. These decisions should be made transparently and with opportunities for public input.

In conclusion, while the legal framework and the yet-to-be-seen master contract provide the foundational protections for Troy’s significant investment in its schools, active and informed community engagement is the most powerful tool residents have. By staying informed through the district’s official channels, participating in public meetings, and holding both the school board and the construction manager accountable, the residents of Troy can help ensure that the promise of the 2022 bond is fully realized in the form of high-quality, enduring improvements to their schools.