CEDAR RAPIDS — City officials say they expect to reopen 34th Street SE this fall after the contractor originally hired to rebuild the roadway abruptly abandoned the work in mid-August.
Contractor default leaves major project paused
The city’s contractor, Shift Companies, informed Cedar Rapids in mid-August that it would not complete the 34th Street SE reconstruction nor a separate northeast-side road improvement project. The company did not give a reason for defaulting on the contracts.
Construction equipment remains along 34th Street SE near North Terry Drive, and a lengthy detour is still in place. Drivers currently are routed east on Mount Vernon Road, north on East Post Road and west on Cottage Grove Road before reconnecting with 34th Street SE.
“Enough work will be completed so that 34th Street will not be closed for the winter and the contract can be finished next spring.”
The statement was provided to The Gazette by Ken DeKeyser, Cedar Rapids city engineer, who said the city has been coordinating with the surety company that issued performance bonds for the projects to identify contractors who can step in and complete the work.
What remains and what’s next
Both projects involve full roadway reconstruction and upgrades to utilities beneath the streets. The city said the surety company responsible for the performance bonds will provide refunds to the city as appropriate, and that material suppliers and equipment rental companies should remove any items left at the sites.
- 34th Street SE: Road closure remains; enough work will be completed to keep it open through winter; completion of contract expected next spring.
- Northeast-side project: Includes portions of Richard Drive NE, Nancy Jane Lane NE and Brookland Drive NE; work had not progressed far and access to adjacent properties remains open.
- Payments: The city paid Shift Companies $132,000 for work performed in June and July on the 34th Street project; no payments were made for the northeast-side project.
DeKeyser said the timeline for finishing the 34th Street work has not been finalized, but city crews and the surety are pursuing options to avoid leaving the road closed through winter. The northeast-side project, which covers stretches of Richard Drive NE from Evergreen Street to Nancy Jane Lane, Nancy Jane Lane NE from Richard Drive to Brookland Drive, and Brookland Drive NE from Nancy Jane Lane to Redbud Road, saw minimal progress prior to the default.
| Project | Streets affected | Status |
|---|---|---|
| 34th Street SE | 34th Street SE near North Terry Drive | Closed; detour in place; work paused after contractor default |
| Northeast-side project | Richard Drive NE, Nancy Jane Lane NE, Brookland Drive NE | Limited progress; access to adjacent properties remains open |
Local consequences and fiscal details
Both projects are funded through the city’s local-option sales tax-supported Paving for Progress program. The abrupt contractor default leaves the city balancing the immediate need to restore traffic flow against the procedural steps required to rely on the performance bond and secure a new contractor.
The city has confirmed it will seek removal of any remaining equipment or materials from the sites by the suppliers or rental firms that provided them. The surety company’s involvement means Cedar Rapids can expect some financial remedy, but DeKeyser said details on refunds and claims are being worked out with the bond issuer.
For residents who use 34th Street SE daily, the detour adds mileage and travel time along major arterials. City officials’ priority, according to DeKeyser, is to reopen the route in a safe, winter-ready condition and to finish the reconstruction next spring once a replacement contractor is secured.
Cedar Rapids residents who have questions about construction or detours can contact the city engineering office or monitor official city communications for updates on contractor selection and expected work schedules.
