The US Army Corps of Engineers has terminated its contract with Shimmick Construction Co. to work on a section of the massive Chickamauga Dam replacement project on the Tennessee River in Chattanooga, Tennessee.
Shimmick says he is appealing the termination.
The contractor had been hired in 2017 as the prime contractor for the $309 million lock chamber contract and its scope of work. it included excavation, demolition, installation of boreholes and a new operations building and gate control shelters.
The Body declared that the contract rrequired completion by January 27, 2026. As recently as late 2024, the Corps reported that it and Shimmick were “making significant progress” on the Chickamauga Lock replacement project with the transfer of 14-meter door components to the site.
But Shimmick, the Corps alleged in a statement, failed to “diligently pursue the work,” maintain the schedule and correct deficiencies. Despite the Nashville district’s efforts to cooperate, the Corps no longer had confidence that Shimmick could meet his contractual obligations, the statement said.
The Corps has stated that the overall cost of the lock replacement project is about $954 million. In its statement, the Corps said it is now exploring procurement options to finish construction of the remaining lock chamber and “cross the finish line with an operational navigational lock by 2028.”
Irvine, Calif.-based Shimmick (Nasdaq: SHIM) disputes the termination and said in a statement that the contractor has a right to appeal to the decision of the procuring agent within 90 days of notification and that the contractor plans exercise your right and obtain compensation for the labor expenses that correspond to you a.
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In the company’s statement, the CEO of Shimmick Ural Yal said that change orders are “common in large and complex construction projects” and that “Shimmick has a long history of work [the Corps]”and keep working Body projects in Texas and California.
The project has been in the works for decades, funded through a 65/35 split between the federal general fund and the Inland Waterways Trust Fund, which is funded through marine fuel taxes on commercial customers.
