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Supreme Court to hear arguments over UA dorm construction records
Wednesday, Oct 24, 2007

By Rob Moritz
Arkansas News Bureau

LITTLE ROCK - A case before the state Supreme Court seeking records from a construction company that built a $35 million dormitory at the University of Arkansas is part of a contractor advocacy group's effort to change state law concerning contracts for high-dollar building projects, the group's president said Tuesday.

The high court is scheduled to hear oral arguments Thursday in Conway-based Nabholz Construction Co.'s appeal of a Pulaski County circuit judge's order to turn over to the Contractors for Public Protection Association some of company records related to the construction of the Northwest Quadrant Housing Project on the Fayetteville campus.

Nabholz attorney Jeff Miller said Tuesday he would argue that the privately owned company should not have to make its records public.

Nabholz, which got the state contract without going through a competitive bidding process under a 2001 law, earned about $1.3 million and received another $2.5 million in overhead expenses on the project.

David Gatzke, president of Contractors for Public Protection Association, said Tuesday the organization's lawsuit centers on the $2.5 million in overhead expenses Nabholz received. The association took the company to court after it refused to release records of the expenses under the state's Freedom of Information Act.

Ron Hope, attorney for the association, said the records are public under a provision of the FOIA that has been interpreted by the courts to extend to private companies that perform public functions.

In March, Circuit Judge Marion Humphrey ordered Nabholz to release a detailed listing of the $2.5 million in expenses.

"We're going to find out Thursday ... if in fact all this information is available under the FOI," Gatzke said.

While the association tries to get the expense records from Nabholz, it has another lawsuit pending in Pulaski County Circuit Court that challenges the constitutionality of the state law that allows the state to award some contracts for constructing or repairing public buildings without competitive bids.

State law requires that state contracts for constructing or repairing buildings "in any county" be awarded to the low bidder. In 2001, the Legislature created an exception to allow the awarding of building contracts to be based on factors other than cost if the project exceeds $5 million, excluding land costs.

During an August hearing, the state attorney general's office argued the law insures taxpayers are getting the best deal because contractors are chosen on more than just a price. The association contends the change opened the law to possible abuse.

No trial date has been set in the lawsuit before Circuit Judge Jay Moody.



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