State, contractor reach agreement over guardrails

CHATTANOOGA, Tenn. (AP) - State transportation officials and a Kingston Springs contractor have reached a tentative agreement over guardrails the company has installed since 1998.

Lu Incorporated had been suspended from bidding on state contracts after whistle-blower alleged Lu crews cut guardrail posts shorter than required while installing them.

In a news release, Transportation Commissioner Gerald Nicely says the company has agreed to pay more than $360,000 to cover inspection and replacement costs related to TDOT's review of Lu's work.

Most of the money will come from funds the state withheld after allegations arose. Lu owner Novice Cole said he looks forward to resuming the company's relationship with the state.

The terms of the proposed agreement are subject to approval by the state's attorney general, comptroller and governor.

(Copyright 2006 by The Associated Press. All Rights Reserved.)