Ball State’s multi-million dollar geothermal projects has encountered complications recently, including running out of funds in its final phase and a lawsuit involving a subtractor.
A lawsuit between two contractors of the project will not affect the construction, leaving the ideal date for its completion in Spring 2016, said Jim Lowe, director of engineering and construction operations. That completion date depends on receiving funding within the next month.
“Phase 2 of the geothermal conversion was always a question in terms of completion because we knew when we ventured into the project that we had enough money to do slightly over half the project,” Lowe said. “At that time, we would have hoped that we would then be able to have the remainder of the money in place [when phase one was completed].”
The Indiana General Assembly will decide at the end of the month if it will grant the university another $33.1 million for Phase 2. Eight years ago, the assembly gave $44.9 million in bonds for Phase 1.
The contract with Messer Construction is projected to be completed by the end of the month, although the university will continue to be involved in a lawsuit between subcontractor EnLink Geoenergy Service Inc. and Messer Construction.
Lowe said Ball State has the funds to complete its agreement with the general contractor Messer Construction.
THE LAWSUIT
EnLink Geoenergy said Messer Construction owed it more than $1.3 million in its complaint, filed through the district clerk on March 11.
According to the complaint, Messer Construction stopped paying EnLink for its service and goods after July 15, 2012, making EnLink “the most recent victim” of the project’s bore fields of Ball State.
“Messer’s failure to pay EnLink and EnLink’s subcontractors and suppliers also is causing severe financial distress for many of them,” EnLink said in its complaint.
Part of the money being withheld from EnLink is for liquidated damages, or monetary losses. Under their contract, EnLink owes Messer Construction $5,000 for each day its work is delayed. In turn, Messer Construction would owe that money to Ball State.
“Ball State will be assessing Messer’s liquidated damages,” Lowe said. “There are liquidated damages being charged. The final amount will be determined shortly.”
In the complaint, EnLink said the delay was not causing damages because the bore field is dormant and its work is complete.
EnLink also said one cause of the delay was that it was having a difficult time hiring and retaining subcontractors, according to the complaint. EnLink said it thinks Messer was discouraging other subcontractors and suppliers from doing business with EnLink, though no further evidence has been offered.
Lowe said Messer’s contract with the university will be completed when it puts the borehole site back into soccer field condition. He said this will include installing a sprinkler system top soil, leveling the field and laying sod when weather permits.
Joan Todd, executive director of Ball State Public Relations, said in an email that the university hires contractors through a public bid process and selects the lowest bid that meets requirements. The contractor then hires subcontractors separate from the university.
Ball State and Messer Construction declined to comment on the lawsuit. The Ball State Daily News was unable to reach EnLink’s attorney.
THE PROJECT
The two-phase geothermal project started in May of 2009 with the goal of converting the heating and cooling of campus buildings from coal burning facilities to geothermal systems.
Phase 1 of the conversions was completed in March of 2012, bringing geothermal heating to 22 buildings on the north end of campus and cooling to all 47 buildings, Lowe said.
According to the Ball State website, 1,800 boreholes, each 500 feet deep, were drilled and connected to piping under the two softball fields on the north side of campus.
Water flows through the pipes to an energy station that houses two large-capacity heat pumps. One produces cold water at 42 degrees Fahrenheit, and the other produces hot water at 150 degrees Fahrenheit.
The water then flows through two different paths on campus to air hailing units in the buildings. The units are basically coils that water runs through to either heat or cool the air.
The rest of the buildings on campus will receive heat with the completion of Phase 2, which includes another 1,800 boreholes and energy station on the south side of campus.
Lowe said so far 780 boreholes have been drilled, but there are not enough funds to complete the rest of the work.
He said if the General Assembly allocates another $33.1 million to the project, it would start the process of rebidding for contractors and drawing up plans, aiming to complete the project entirely in spring 2013.
