BLOOMINGTON -- The Unit 5 school district has been ordered to refrain from accepting bids on geothermal well drilling work for a new school until a dispute with a contractor is resolved.

Durbin Geothermal of Beecher City has sued the Normal-based district over a $811,000 contract awarded April 8 for work on the George L. Evans Junior High School.

Durbin says the deal was terminated in August because of alleged violations of the state's prevailing wage rules by Durbin. The contractor denies, however, that it has failed to follow the wage requirements for work on public projects.

A Nov. 19 hearing is scheduled on Durbin's request to keep Unit 5 from awarding a new contract.

On Sept. 22, Judge Michael Prall issued a temporary restraining order prohibiting action by Unit 5 until arguments are heard in court.

Court records indicate all bids received by Unit 5 in a re-bidding process after the Durbin contract was cancelled came in lower than the $811,000 bid. A new bid has not been awarded.

In its response to the lawsuit, Unit 5 argues that the Durbin contract was cancelled because of three prevailing wage violations filed with the state labor department.

"Such reason is hardly bad faith, but in fact a good faith reason for terminating the contract, especially in light of what Unit 5 perceived as threats from trade unions to shut down the entire construction if Durbin's prevailing wage issues were not addressed," Unit 5 argued.

Durbin contends in court documents that the company was the lowest bidder and the district should not be allowed to award a new contract.

"A public body does not have the right to determine the 'lowest responsible bidder' and then 'kick out' that bidder in order to make room for a bidder of its choice," Durbin argued.

Unit 5 hopes to see the junior high project on U.S. 150 in Bloomington completed for the 2010-2011 school term.