Genie Construction Company, Inc. v. State of Illinois

In Genie Construction Company, Inc. v. State of Illinois, 51 Ill. Ct. Cl. 153 (1999), the contractor had received two contracts to repaint bridges in several counties. Soon after it began work on one contract, it became clear that the contractor would have to remove all the old paint before repainting, a task not contemplated by either party prior to contract execution. The parties thus modified one of the contracts to include and provide compensation for this additional work. When the contractor began work on the second contract, it ran into the same problem. A state -- employed bridge inspector authorized this additional work just as he had under the first contract. This time, however, the State of Illinois refused to pay for the additional work and the contractor sued. The State of Illinois claimed the inspector did not have proper authority to bind the State of Illinois to this additional work. The Court of Claims dismissed this notion and found that the contractor had to pass inspection from this employee in order to be paid. The fact that the inspector failed to get a supervisor approval for this additional work was not chargeable to the contractor and the court determined that the inspector had apparent authority to bind the state.