Builders Paving LLC Cleared to Resume Illinois State Road Contracts After Settlement

Builders Paving LLC, a Hillside-based road contractor led by Kaitlyn Palumbo Gandy and Ryan Gandy, has been cleared to resume work on Illinois Department of Transportation (IDOT) projects following the announcement of a settlement agreement. The decision, announced this week, comes after a lengthy investigation that had stalled over two dozen state road projects worth more than $50 million.

The dispute centered on whether Builders Paving accurately disclosed its business ties to Sebastian “Sam” Palumbo, a felon long barred from participation in state and federal roadwork, and whether these ties violated debarment rules arising from earlier fraud convictions involving Palumbo-linked companies. In releasing the settlement, IDOT stated that Builders “did not fully or accurately disclose their relationship with Sebastian Palumbo in their prequalification applications or their correspondence with IDOT regarding its investigation.” However, the department concluded that "there is insufficient evidence at this time to support the conclusion" that Builders Paving or its affiliates were non-responsible bidders under state law.

Builders Paving had been allowed to continue bidding during the inquiry, ultimately submitting the lowest bids on over twenty road projects. The settlement lifts the pause on contract awards, allowing those delayed projects to move forward. As part of the agreement, Builders will drop its court appeal against IDOT and both parties have agreed to terms guiding future participation under specified conditions.

Ryan Gandy, president of Builders, addressed employees in a recent statement, calling the outcome a validation of the company’s integrity and internal controls. IDOT, overseen by Gov. JB Pritzker, emphasized its commitment to maintaining the procurement process and protecting taxpayer interests. The investigation is now closed, and the previously stalled roadwork is expected to soon resume.