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TDOT And LU Inc Reach Agreement In Guardrail Case

Wednesday, October 25, 2006 | 07:00pm

Agreement Ends Dispute Over Installation Of GuardrailsNashville, Tenn. – The Tennessee Department of Transportation announced today that it has reached a tentative agreement with the contractor Lu, Inc. regarding the installation of guardrail by Lu, Inc. on TDOT projects.

Lu, Inc. has agreed to pay a settlement of $362,289 to TDOT to cover inspection and replacement costs stemming from TDOT’s review of the guardrail company’s work. Most of the settlement will come from money that has been withheld from payment to Lu, Inc. on past contracts. The guardrail company has also agreed to drop any legal actions against the state. In turn, TDOT has agreed to allow Lu, Inc. to resume bidding on TDOT projects. On any future contract that may be awarded to Lu, Inc. in 2006 or 2007, Lu, Inc. will return 2% of the contract price back to TDOT to assist in paying for inspection and oversight costs.

“This has been a lengthy process for everyone involved,” said TDOT Commissioner Gerald Nicely. “I’m pleased to see this agreement reached and look forward to working with Lu, Inc. in the future.”

“For years, Lu, Inc. has worked alongside TDOT on major projects throughout the state,” said Novice Cole, Owner of Lu, Inc. “I look forward to resuming that relationship and moving forward with our business.”

The terms of this agreement are subject to approval by the Attorney General, Comptroller and Governor of the State of Tennessee.

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