Contractor may face sanction for bond paperwork mix-up

2012-10-23T20:00:00Z Contractor may face sanction for bond paperwork mix-upBill Dolan, (219) 662-5328
October 23, 2012 8:00 pm  • 

CROWN POINT | Lake County Attorney John Dull is recommending a construction firm keep two public flood-control contracts it currently holds but be barred from bidding on two future projects because of flawed paperwork it submitted to the county.

Dull's report could resolve a controversy that arose earlier this month when Joe Jargella, owner of Gary's Chem Check construction, accused the county of improperly giving contracts to V-Mad Construction, of Lowell, to improve stormwater drainage in the Kaiser Ditch in Merrillville and Brown Ditch in rural south Lake County. Jargella alleged V-Mad submitted improper bidding documents.

Dull said Kevin Madison, owner of a business proprietorship called V-Mad, incorrectly submitted a bid bond — a financial security the county requires to ensure bidders will carry through the work required — for the projects in the name of KDM Construction.

Dull said the state had dissolved KDM in 2010 because Madison failed to timely file reports about the company's officers and place of business and failed to pay a filing fee.

Dull said the cost of voiding V-Mad's contracts and rebidding the projects would be an unnecessary burden to taxpayers, so he is recommending V-Mad be kept on the Kaiser and Brown Levee projects but be denied eligibility to bid on two future projects.

Jargella's Chem Check was similarly sanctioned earlier this year for performance issues involving work on the Brown Levee.

Madison said Wednesday the paperwork mix-up was unintentional and has been resolved. He said his accuser, Jargella, was politically motivated to embarrass Lake County Surveyor George Van Til.

Van Til said Tuesday he and the county drainage board usually follow their lawyers' advice and will act accordingly at a future meeting.

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