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Court Decision Denies Worth Construction Petition
to Block Contract Award for I87-I84 Work

Comptroller Stopped Contract with Worth After Determining
that Company Wasn’t a Responsible Bidder

The New York State Supreme Court decided on December 21 against issuing a preliminary injunction in an article 78 proceeding by Worth Construction challenging the Office of the State Comptroller’s determination that Worth is not a responsible vendor and therefore could not be awarded a road construction project by the New York State Thruway Authority.

The Thruway Authority can now proceed with awarding the $46 million contract for construction on the interchanges between Interstates 87 and 84 near Newburgh in Orange County to another vendor.

“This is good news, because it will allow construction to proceed on the I87-I84 interchange, a vital link in the mid-Hudson Valley’s transportation system that will support continued economic growth,” said Comptroller Alan G. Hevesi. “I am very pleased by the court’s decision in this matter.”

Justice Dan Lamont wrote in the decision that, in order to win a preliminary injunction, Worth would have had to show that they were likely to succeed on the merits in the Article 78 proceeding, and that they would have been irreparably damaged without an injunction.

“I fully support this decision by the courts. Clearly, there have been serious issues regarding the responsibility of Worth Construction,” said Senator William J. Larkin, Jr. (R-C, Cornwall-on-Hudson). “It is imperative to continue the progress we have made without any further interruptions and to protect the taxpayers’ investment.”

“This is great news for the people of New York State and the mid-Hudson Valley, because it means that the project will continue but with a responsible vendor,” said Assemblyman Thomas Kirwan (R-Newburgh). “New Yorkers owe a debt of gratitude to Comptroller Hevesi for taking the action that he did in this matter.”

In November, the Comptroller’s Office found that Connecticut-based Worth Construction is not a responsible vendor after an extensive review of materials supplied by the Thruway Authority, as well as independent research by OSC investigators and contract auditors. Among the Comptroller’s Office findings were:

Worth Construction’s president is under investigation by Federal authorities in Connecticut and faces possible indictment for alleged municipal contracting corruption.
According to law enforcement and public records, the firm and its principals have a long history of association with members of organized crime, including business partnerships between one of its principals and convicted organized crime associates.
Worth failed to provide complete answers to questions on the vendor questionnaire by not reporting the existence of related companies and certain corporate officers, and filed troubling financial statements raising concern about its cash position and its billing practices.
State agencies and public authorities are required by law to determine that the vendors selected for construction contracts are the lowest responsible bidders. All State agency contracts valued above certain cost thresholds are submitted to OSC for approval. The Thruway Authority is one of only two major public authorities whose contracts are not valid until approved by the Comptroller.
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December 21st