State Waives More Than $400K In Fines Over Highway MM Project

RACINE COUNTY, WI — Racine County officials are fuming after learning that the Wisconsin Department of Transportation waived more than $400,000 in fines that were levied against Caledonia-based Cornerstone Pavers for their work on the Highway MM project.

Officials said they learned the DOT re-negotiated a deal with Cornerstone - but only after the deal had been struck.

"We are aware that WisDOT effectively eliminated all liquidated damages and entered into a global settlement on July 12, 2019 without County input. The County was informed of the new agreement on July 17, 2019," Racine County Executive Jonathan Delagrave said Friday in a statement to Patch.

County officials said Friday that the total amount of fines waived amounted to $402,615.

Highway MM was closed on April 11, 2018, for a reconstruction project that was scheduled to last about seven months. The $5.3 million project was supposed to be finished in Nov. 2018. The DOT and Racine County are paying for the project on an 80/20 split. That ratio includes any cost overruns that may occur.

By late 2018, Racine County officials began urging Cornerstone and the Department of Transportation to complete the project, as reports surfaced that the beleaguered company was in hot water over two other area languishing road projects.

Citing bad weather, extreme cold and frozen ground, Cornerstone was directed to build a one-lane asphalt road in November, signaling that the bulk of the reconstruction project would be shelved until it could be re-started in 2019.

After a winter that saw record-cold temperatures and a late spring, work on the project resumed in May.

Delagrave has spoken publicly about the lengthy project, voicing his disapproval of Cornerstone's handling of the project. He reiterated many of his concerns to Patch on Friday.

"Having not been in the room - and with county staff not part of the decision to resolve the many delay issues, cost overruns, and questionable workmanship - I can't speak to WisDOT's ultimate decision," he said. "Needless to say, however, the project as a whole should have been handled more effectively from start to finish."