Three years of litigation over cost overruns and delays, the Golden Gate Bridge wind modification and physical deterrent project in San Francisco has come to an end with a $97 million settlement awarded to contractor Shimmick.
“The Golden Gate Bridge, Highway and Transportation District has amicably settled litigation with Shimmick/Danny’s Joint Venture associated with the construction of the wind deterrent system and modification for the Golden Gate Bridge,” the district wrote in a communicated to ENR. “The settlement is an appropriate resolution to the many disputes over the project and will allow both parties to focus on completing the remaining work.”
According to the terms of the agreement entered into entered on October 31Shimmick will receive $97 million before the end of 2024 as reimbursement for costs incurred on the project. In addition, the pending scope of work will be reduced by about $6 million and the project completion date will be extended.
“We are pleased to resolve this claim in a constructive manner, as this settlement reflects a major step forward in our transformation plan,” Shimmick CEO Steve Richard said in a statement. After subcontractor transmission claims are paid, Shimmick plans to use the remaining proceeds for ongoing operations, including the completion of the Golden Gate Bridge project.
The legal battle resulted from the project’s delays and cost overruns. When Shimmick’s team won the contract in 2017, project costs were set at $142 million. In July, the bridge district pegged the cost of the project at $224 million, funded through federal and state grants, bridge tolls, Proposition 63 funds and donations. Shimmick has said the total cost is closer to $398 million.
Litigation began in 2021 with steel supplier Vigor Works LLC suing Shimmick’s joint venture and Danny’s Construction Co. for 13 million dollars. That lawsuit was settled in 2023 and terms were not disclosed. In 2022, the joint venture sued the bridge district for nearly $200 million, including approximately $56 million sought by subcontractors and suppliers.
The main disagreement between the parties stemmed from Shimmick/Danny’s allegation that the bridge district withheld information about the condition and deterioration of the bridge during the bidding process that hindered completion of the work on time and budget.
The joint venture claimed in court filings that it initially cost the work less than it would have had it known about the condition of the stretch. Records show the joint venture was the lower of the two bidders for the project at $142 million. The other bidder, American Bridge Co., offered $172 million. The bridge district countered that two changes in Shimmick’s ownership since the contract was awarded in early 2017 were a factor in the delays.
The project features a new barrier along the entire 1.7 miles consisting of marine-grade steel mesh 20 feet below and 20 feet from each side of the bridge. Instead, some parts have vertical fencing or a combination of both. The project included the replacement of a “traveling” system under the bridge used for maintenance access and wind modifications.
The Bridge District commemorated the main installation of the net in the summer of 2024, noting that since the installation in early 2024 it had already saved lives by reducing the number of suicides on the Golden Gate Bridge. The net’s design was inspired by similar structures on tall buildings and bridges around the world, and the steel is purposely designed to be painful to jump over as an additional deterrent.
Over the past 20 years, an average of 30 suicides have been confirmed annually on the Golden Gate Bridge. In 2023, when the network was under construction, there were 14 confirmed suicides and in 2024 this number continued to drop.
“Although the project is not yet complete, the network is already working to save lives by reducing the number of suicides on the Golden Gate Bridge and deterring people from coming to the bridge to hurt themselves,” the district wrote in a statement “The net is a proven design that prevents people from jumping, serves as a symbol of care and hope for the discouraged, and gives people a second chance.”
Shimmick expects to reach substantial completion of its on-site portion of the entire project by the third quarter of 2025.
“We are very proud,” says Richards, “of the outstanding work our team has done on this challenging and vital project.”
