Updated: Friday, 15 Mar 2013, 7:31 PM EDT
Published : Friday, 15 Mar 2013, 9:32 AM EDT
PORTSMOUTH, Va. (WAVY) - TME Enterprises, Inc. is walking away from another 5-year, multimillion dollar contract with the Virginia Department of Transportation.
VDOT representatives refused to sign a $32 million contract set to begin in May. The contractor also plans to file a lawsuit against VDOT, saying it is due $250,000 for emergency pothole repairs in February.
"TME sent us a notice to withdraw their bid," VDOT's Shannon Marshall told 10 On Your Side. "I can't tell you anything more than that, except the commissioner will brief Commonwealth Transportation members at the Wednesday meeting."
TME President Matt Ehrenzeller, who has refused comment repeatedly, met with VDOT's Interim District Administrator Mike Estes Thursday and the two agreed to part ways.
Commonwealth Transportation Board Member Aubrey Layne had made it clear for several days he was opposed to VDOT inking a new 5-year deal with TME.
"I was uncomfortable with the contract, and performance on it, and I stated I wasn't going to be comfortable going forward with any contractor not in good standing with the state," Layne said.
VDOT will have to find another contractor to replace TME. It is not known how this development will affect their other contracts in Richmond and Charlottesville.
Earlier this month, VDOT released a preliminary report of pothole repairs in February on Interstate 264. The report stated TME did not repair the potholes in a timely manner and was not proactive in making sure the potholes were safe.
Officials tell 10 On Your Side the matter could end up in court, where TME would argue VDOT failed to maintain 13 inches of concrete on the highway.
"It's a contractual dispute," Layne said. "I think both parties have plenty to blame. I think VDOT is stepping up and trying to do something about it."
TME is also facing pollution charges in Norfolk and Chesapeake for illegally dumping road materials into stormwater systems.
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