The Illinois State Tollway Authority is unable to hire another contractor to work on a $324 million project to rebuild the southbound lanes of the Interstate 290 interchange and Interstate 88 near of Oak Brook, Illinois pending resolution of a wrongful termination lawsuit filed against New York-based Judlau Contracting Authority.
In court documents, the toll authority acknowledges that it did not apply a 4 percent preference to Illinois companies seeking employment. Had the authority done so, a nearly $327 million bid by Illinois-based Walsh Construction would have been reduced to nearly $314 million and would have qualified Walsh as the low bidder.
Walsh protested the award to Judlau based on a separate issue of whether Judlau’s lowest bid met contract requirements for disadvantaged business subcontractors, but lost in January. However, the toll authority later awarded the contract to Walsh.
Judlau then sued in state court in Wheaton, Illinois, where a judge issued an injunction preventing the authority from moving forward.
In a court affidavit, Peter Foernssler, the toll authority’s director of purchasing, said the tollway failed to understand “the mandatory nature” of an Illinois procurement law that was passed in 2023 and which requires a 4% preference (or abatement) for any Illinois business. bid on a project over $100,000.
In issuing a June 20 temporary restraining order preventing the turnpike from hiring Walsh for the project, Judge Anne Hayes wrote, “Judlau has established an ascertainable right that needs protection; namely, the right to participate in a fair and open competitive bidding process”.
Six weeks after Judlau said it had hired workers, purchased materials and was excavating and grading the roadway, the contractor received a two-line letter from the highway on May 16 terminating its contract. The formal award had been made in February following Walsh’s failed protest.
“It wasn’t until April that the tollway says it realized its mistake and failed to communicate with Judlau about the problem and allowed Judlau to continue working until the termination notice was served,” said Judlau spokesman Randall Samborn. “Until then and since then, the highway has provided inconsistent explanations for the termination. In addition, there was no reference or information about the 4% preference in any of the tender package documents.”
Judlau immediately filed suit, according to Judlau executive vice president Arnav Armin, who said in a statement: “Unfortunately, we were forced to take this action to protect ourselves, our subcontractors and motorists.”
Contested bidding process
The toll authority argues in court documents that its contract with Judlau is “empty from the beginning,” meaning it was void from the start because the turnpike did not properly administer the bidding process and did not assign a 4% bid preference to an Illinois company.
The interchange project is part of the $4 billion tri-state freeway core project that is rebuilding and widening a 22-mile corridor along Interstate 294 between Balmoral Avenue North and 95th.th Street to the south The project started in 2018 and is expected to end in 2026.
Armin de Judlau states that the termination “adversely affects approximately 160 subcontractors and vendors and will substantially delay the project at the expense of 300,000 daily riders while work already underway remains at a standstill.”
Dan Rozek, a spokesman for the toll authority, declined to comment on the lawsuit, but said, “while a final determination is being made on the I-290/I-88 interchange project, it is important to note that construction continues. other parts of I-290/I-88, and great progress is being made.”
Walsh Construction did not immediately respond to a request for comment.
