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Illinois Tollway, Judlau settle contract cancellation dispute for nearly $25M

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Illinois Tollway, Judlau settle contract cancellation dispute for nearly $25M
The Illinois Tollway announced that a settlement agreement with Judlau Contracting, out of College Point, NY, has been reached related to the Tollway’s cancellation of a construction contract

DOWNERS GROVE, Ill. – The Illinois Tollway announced that a settlement agreement with Judlau Contracting, out of College Point, New York, has been reached related to the Tollway’s cancellation of a construction contract for work that is part of the I-290/I-88 Interchange Project at the Tri-State Tollway (I-294). The agreement settles the dispute to the satisfaction of both parties.

The settlement prioritizes the Tollway’s commitment to motorist safety and the timely continuation of vital construction improvements along the Central Tri-State Tollway (I-294) corridor and also makes Judlau whole for work already performed.

The Tollway contract, which involved roadway and bridge construction on the southbound side of the I-290/I-88 Interchange, 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. If the bid preference had been applied, the contract would have been awarded to Walsh Construction Company II.  The agreement will eliminate legal barriers and enable the Tollway to proceed with the project.  In addition, it resolves time-consuming and costly litigation.

Both parties agreed to settle the case for $24,985,437, which covers substantial construction costs of approximately $15 million already incurred by Judlau. In addition, the Illinois Tollway will pay Judlau’s subcontractors approximately $6.5 million for work they performed.

The agreement also allows the Tollway to enter into a contract with Walsh and move forward with work as planned for the 2025 construction season to deliver improvements that will reduce congestion, improve safety and address operational issues for the 300,000 vehicles using the interchange daily.

Judlau issued a statement in response to the resolution of the case.

“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,” the statement read.

Bruce Guthrie

Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.

Avatar for Bruce Guthrie
Bruce Guthrie is an award-winning journalist who has lived in three states including Arkansas, Missouri and Georgia. During his nearly 20-year career, Bruce has served as managing editor and sports editor for numerous publications. He and his wife, Dana, who is also a journalist, are based in Carrollton, Georgia.
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