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Tollway settles lawsuit for $25 million after neglecting to follow state law

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Illinois

* Background is here if you need it. Marni Pyke…

After months of construction delays on a massive interchange project, Illinois tollway board directors Thursday approved a nearly $25 million settlement to a lawsuit filed by a contractor.

Tollway leaders also acknowledged that the agency made an administrative error when it awarded a $323 million contract to New York-based Judlau Construction in 2023 to repair the I-290/I-88 interchange.

As a result, officials canceled the contract in May without any explanation to Judlau. The firm promptly sued for breach of contract, noting it had already hired workers, bought materials and was actively excavating and grading.

About $15 million of the settlement covers actual construction costs incurred by Judlau, and $10 million is related to damages. The tollway board also agreed to pay Judlau’s subcontractors $6.5 million for construction work performed on the interchange.

The contract was “canceled because a relatively new provision in state law that provides a bid preference for companies based in Illinois was inadvertently excluded from the original contract bid evaluation,” tollway officials said in a statement.

“Judlau is satisfied with the settlement and notes that the Tollway did not terminate the contract as a result of any performance issues on the part of Judlau.”

posted by Rich Miller
Thursday, Aug 29, 24 @ 1:39 pm

Comments

=== a relatively new provision in state law that provides a bid preference for companies based in Illinois was inadvertently excluded from the original contract bid evaluation,” ===

Who was fired?

Comment by Thomas Paine Thursday, Aug 29, 24 @ 1:57 pm
That’s a pretty pricey oversight, ISTHA. Could you maybe update your evaluation matrix before making the next award?

Comment by Excitable Boy Thursday, Aug 29, 24 @ 1:59 pm
This is a significant mistake on the part of the Tollway leadership team. Good public administration matters.

Comment by Teve Demotte Thursday, Aug 29, 24 @ 2:07 pm
Don’t worry…they’re good for the money. No shortages over there.

Comment by NIU Grad Thursday, Aug 29, 24 @ 2:30 pm
Everything done by the Tollway in awarding a contract is subject to external oversight by the CPO’s office. They must have made the same mistake, and exist to ensure the law is followed.

Comment by Lincoln Lad Thursday, Aug 29, 24 @ 3:54 pm
Correct Lincoln Lad. The CPO is as responsible as Tollway, maybe more as their sole purpose is to ensure law is followed.

Comment by Thinking Friday, Aug 30, 24 @ 12:11 am
So who was held accountable? ISTHA must have a big rug and broom.

Comment by Python33 Friday, Aug 30, 24 @ 7:45 am