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Court: DOT owes subcontractors for rest stop work

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January 31st, 2014 by Ric Hanson

DES MOINES, Iowa (AP) – The Iowa Supreme Court says the Iowa Department of Transportation is responsible for paying three subcontractors after they completed work on state projects in 2011 but were never paid by the general contractor hired by the state.  The case centers on improvements made to Interstate 80 rest stops in Adair County. The DOT hired Universal Concrete Ltd. as the general contractor which in turn hired three subcontractors to provide equipment and concrete.

The three subcontractors, owed in excess of $32,000, sued the DOT but lost in district court and appealed. The appeal presents the first opportunity for the high court to decide whether a 1988 law requires the DOT to pay subcontractors shortchanged by a general contractor.

The court determined DOT should pay the subcontractors and any reasonable attorney fees.