‘Extreme project delay’: Firm claims tollway errors on I-490 is costing millions

A major Illinois tollway contractor is suing the agency, claiming blunders and “misdeeds” have cost the firm and the public millions, and delayed construction of the pivotal I-490 corridor.

A lawsuit filed Friday in DuPage County court contends Judlau Contracting Inc. incurred $29 million in damages because of unforced errors.

“This case presents a cautionary tale to contractors who do business with the tollway,” court documents state.

Tollway spokesperson Dan Rozek said “at this time we have no comment due to pending litigation.”

The construction company threatened to sue the tollway in April 2025 over problems with the contract, which resulted in a $19 million settlement being approved in September. The tollway has already paid $9.6 million, Judlau states.

But since then, the agency has balked at compensating Judlau for the remainder, according to the lawsuit.

“Judlau reluctantly filed this lawsuit as a last resort to prevent the tollway from unfairly shifting the financial burden of this project to Judlau and to compel the tollway to honor its agreements,” a company spokesperson said Monday.

It’s the second time in two years New York-based Judlau has taken the tollway to court over a contract. In 2024, the firm won about $10 million in damages for an unrelated project.

Interstate 490 is a massive endeavor that involves building a toll road near O’Hare International Airport’s west side that will hook up with I-294 and I-90. The corridor’s proximity to railroads and airport infrastructure is adding to the complexity.

Judlau argues the tollway dropped the ball over getting required easements and right-of-way permission on two separate projects: building a new Union Pacific Railroad bridge for over $21 million, and constructing a retaining wall from the Canadian Pacific Railway Bensenville yard to Irving Park Road for $37.8 million.

A 13-month tollway time frame to erect the bridge “turned out to be wildly untrue,” when Judlau learned the agency hadn’t received permission to access UP property or conducted utility relocation, the lawsuit states.

Along with project revisions, it took 777 days before Judlau could start work.

Similarly, the retaining wall job hit a snag because the tollway had not secured right-of-way and easements from Chicago, which led to 514 lost days, Judlau contends.

“The tollway dragged its feet for years and was non-responsive to Judlau’s concerns. All the while, Judlau was forced to bear the mounting financial burden at its own cost,” attorneys argue.

The uncertainties have added up to $29 million in terms of labor, supplies, inflation costs and lost opportunities on other projects while the tollway work was in limbo, the firm estimates.

The tollway and Judlau negotiated the total down to $19 million, which was approved in September 2025. But the agency then sought to tie reimbursements for $4 million in steel cost escalation to the deal, which Judlau claims was covered under the original contract and not part of the new agreement.

As a result, the firm is asking the court to undo the September agreement, and order the tollway to compensate the firm for its expenditures.

“The tollway’s manner of doing business has led to extreme project delay, increased costs to the public and significant financial harm to Judlau,” the lawsuit states.

The 2024 dispute rose over the tollway canceling a contract awarded to Judlau to repair the I-290/I-88 interchange because of a bidding error.