The U.S. Army Corps of Engineers has terminated its contract with Shimmick Construction Co. for work on a section of the huge Chickamauga Dam lock replacement project on the Tennessee River in Chattanooga, Tenn.
Shimmick says it is appealing the termination.
The contractor had been hired in 2017 as prime contractor for the $309-million lock chamber contract and its work scope included excavation, demolition, installation of drilled shafts and a new operations building and gate control shelters.
The Corps stated that the contract required completion by Jan. 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 miter gate components to the site.
But Shimmick, the Corps alleged in a statement, failed «to prosecute the work with diligence,» maintain the schedule and correct deficiencies. Despite the Nashville district’s efforts to collaborate, the Corps no longer was confident Shimmick could meet its contractual obligations, according to the statement.
The Corps has stated that the overall lock replacement project cost is about $954 million. In its statement, the Corps said it is now exploring contracting options to finish remaining lock chamber construction, and «cross the goal line with an operational navigation lock in 2028.»
Irvine, Calif.-based Shimmick (Nasdaq: SHIM) disputes the termination and said in a statement that the contractor has a right to appeal a contracting officer’s decision within 90 days of notice and that the contractor plans to exercise its right and obtain compensation for the work-related costs it is entitled to.
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In the company’s statement, Shimmick CEO Ural Yal said change orders are «common in large, complex construction projects» and that «Shimmick has a long history of working for [the Corps]» and continues work on Corps projects in Texas and California.
The project has been in the works for decades, funded via a 65/35 split between the federal general fund and the Inland Waterways Trust Fund, which itself is funded through marine fuel taxes on commercial customers.
