Construction company suing Red Willow County

A McCook construction company is suing Red Willow County for $54,329, saying the county's hiring of another construction firm was illegal.

The lawsuit filed Jan. 23 by McCook Contracting L.L.C. claims the county illegally hired J.L. Construction to build its new household waste facility and that bid information about site-clearing given only to J.L. Construction caused McCook Contracting's bid appear not to be the lowest.

McCook Contracting L.L.C. is owned by Bill Davis, Paul Goodenberger and Monte Hazlitt.

An original lawsuit also named J.L. Construction as a defendant. However, Judge Donald Rowlands of North Platte dismissed charges against J.L. Construction in September, 2002. (Rowlands ruled on the case after Red Willow District Judge John Battershell excused himself because of his acquaintance with Joe Leamon, the owner of J.L. Construction.)

County commissioners advertised for bids on the new building Feb. 8, 2002, Feb. 15, 2002, and Feb. 22, 2002. According to the lawsuit, the bid specs included site-clearing and earthwork as parts of the contract obligations, specifically that all earthwork within 10 feet of the building was the responsibility of the contractor.

McCook Contracting's suit contends that before the bids were opened March 5, an employee or employees of Miller and Associates of McCook, consulting engineers for the project, told J.L. Construction, and only J.L. Construction, that the site-clearing and earthwork would not be part of the bid, and that such work would be completed by county employees.

McCook Contracting states that the county's failure to notify other bidders of this modification to the advertised bid specs constitutes negligence on the part of the county.

When bids were opened, J.L. Construction's bid, which did not include earthwork, was $296,000. McCook Contracting's bid, which included dirt work, was $298,090 -- $2,090 more than J.L. Construction's bid.

The suit explains that McCook Contracting allowed $13,582 for site preparation and dirt work. Removing that amount from McCook Contracting's bid would have made its ultimate bid $284,508.

McCook Contracting claims its bid was actually lower than J.L.'s. and that awarding the bid to J.L. was contrary to Nebraska law stipulating the letting and awarding of construction projects for public entities and political subdivisions.

McCook Contracting claims the county did not award the contract to the lowest bidder, contrary to Nebraska law.

McCook Contracting claims it suffered damages of $54,329 in loss of profits and related outgoing expenses:

- Lost income and time, $800.

- Lost overhead and profit, $35,737.

- Lost income due to partner labor, $12,392.

- Legal fees, $5,000.