Lowest Bidders Are Not Always Awarded Jobs

Coshocton, Ohio has problems with beat up, pothole filled roads. The scheduled work is months behind due to disputes between Apache Aggregate and Paving, Ohio Asphalt and Paving Company and Coshocton County Commissioners. They were having trouble figuring out who legally should be awarded the job.

The funding for the project came from The Round 19 Ohio Public Works Commission Issue II. The contracts were more than $1 million to pave several township, county, city and state roads.

Ohio Asphalt and Paving Company was the low bidder on the project, but Apache Aggregate and Paving was awarded two paving projects. Ohio Asphalt decided to take the issue to the courts, as they felt they should have been awarded the work. This past June the U.S. District Court ordered commissioners to award project to Ohio Asphalt and Paving. Apache appealed the decision to the Federal courts. The ruling was overturned. The judge stated that the obligee has the right to base decisions on quality of work, not only the price.

After the Federal cout decision, Ohio Asphalt and Paving stopped working on the project immediately. Ohio Asphault stated that rising fuel costs since hurricanes hit the Gulf Coast, it no longer wants to work on the Issue II project. Since then the Commissioners decided to have their attorney, Jeff Stankunas, notify Ohio Asphalt and Paving, Inc., that its contract has been canceled. Stankunas was ordered to take all steps necessary to assert the commissioners’ rights against the surety that issued Ohio Asphalt’s performance bond.

Ohio Asphalt has successfully completed part of the Issue II project, re-surfacing on Denman Avenue and Buena Vista Drive in Coshocton, and Sixth Street and Green Drive in West Lafayette.

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Eric is the Chief Marketing Officer of JW Surety Bonds. With years of experience in the surety industry, he is also a contributing author to the surety bond blog. He has held a range of different roles within the surety industry, from agent assistant to bond issuer, which gives him a unique insider perspective on surety related topics.

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