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2 Companies File Suit Over Bidding For VW Projects

Monday, September 07, 2009

Two companies have filed suit, saying their bids were not fairly considered for work at the new Volkswagen plant at the Enterprise South Industrial Park.

Separate suits were filed in Chancery Court by Graycor Construction Company of Illinois and D.F. Chase Construction of Nashville.

The suits asked for injunctions that would block the awarding of contracts to others until a hearing could be held. However, no such injunction has been signed.

The Graycor suit is against city purchasing, the industrial bond board and Walbridge Aldinger Company.

The D.F. Chase suit is against city purchasing, the industrial bond board, EMJ Corporation and Walbridge Aldinger.

Graycor said it put in a bid for the liquid tank farm project at the VW plant.

It said bids opened on May 27 were Walbridge $4,9989,500 with a contingency of $454,500, W.J. O'Neil $5,599,000 and Graycor $5,908,000.

Graycor officials said they were asked by the city if they would hold their price until July 31 because the bids were still "under investigation."
Graycor officials said they were advised on July 14 that the contract was going to Walbridge.

The suit says the bid by Walbridge "was artificially low because of certain errors therein. Upon information and belief, the city defendants negotiated with Walbridge to come to an agreement on a final bid price after the bid opening date and time."

It was claimed that the city allowed Walbridge to revise its bid after the bid opening date.

D.F. Chase also complained about the liquid tank farm bid handling, saying it had planned to be a subcontractor of W.J. O'Neil.


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