Shimmick Corporation announced plans to formally challenge a recent contract action by the U.S. Army Corps of Engineers involving the long-running Chickamauga Lock replacement project in Chattanooga, Tennessee.
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The dispute centers on a federal contract originally awarded in 2017 for construction of the project’s 600-foot lock chamber, including drilled shaft foundations, mass concrete work, and installation of miter gate systems and related infrastructure components.
According to the company, the USACE issued a notice terminating Shimmick’s right to proceed under the contract earlier this month. The contractor said it intends to exercise its contractual appeal rights within the allowable review period.
The Chickamauga Lock replacement has been one of the more complex inland waterway infrastructure projects currently underway in the United States, involving large-scale concrete operations, marine construction, and extensive coordination among federal agencies, subcontractors, and labor forces.
Shimmick stated that project teams accumulated more than 5 million labor hours over the course of the assignment while employing a peak workforce of more than 425 personnel on site, including local subcontractors and union labor partners.
The contractor also indicated that project challenges involved ongoing change-order discussions and evolving construction conditions, both of which are common on large-scale federal infrastructure projects with long durations and complex technical scopes.
Disputes tied to change orders, schedule impacts, and differing site conditions remain a recurring issue across major public infrastructure work, particularly on multiyear civil megaprojects where design revisions, unforeseen conditions, and scope modifications can significantly affect project execution and cost structures.
The appeal process could draw attention from contractors and public owners alike because of its potential implications for risk allocation, claims management, and contractor-government relations on future federally funded infrastructure projects.
Despite the dispute, Shimmick said it continues to maintain active working relationships with the USACE through ongoing infrastructure assignments in Texas and California.
The company specializes in large-scale water, transportation, energy, and climate resilience infrastructure projects throughout the United States.
For construction owners and public agencies, the dispute highlights the growing complexity and contractual risk associated with large-scale infrastructure megaprojects. Long-duration civil projects often involve evolving site conditions, design revisions, and extensive change-order negotiations that can significantly affect schedules, costs, and contractor relationships.
The case also underscores the importance of clearly defined contract administration processes, documentation standards, and dispute resolution mechanisms on federally funded work. Owners managing major infrastructure programs may increasingly focus on collaborative delivery methods, early risk identification, and transparent change management practices to reduce the likelihood of costly project disputes.
For contractors pursuing public-sector megaprojects, the situation serves as another reminder that claims management, labor coordination, and contractual flexibility remain critical components of successful project execution in today’s infrastructure market.
Originally reported by Shimmick.
