MONTGOMERY – The Governor Kay Ivey Correctional Complex in Elmore County has advanced to an estimated more than 85% completion. While construction remains ongoing, the design-build contractor, Caddell Construction Co. (DE), LLC failed to timely meet the contractual Final Completion Deadline of October 15, 2026.
Under the design-build agreement (DBA), Caddell remains obligated to complete the construction for the Final Guaranteed Maximum Price, subject to the terms of the DBA. Additionally, contractual liquidated damages in the amount of approximately $14.2 million are now due, with an additional amount of approximately $7.1 million due by contract on November 16, 2026, if the project is not completed by that date.
ACIFA has exercised certain of its contractual rights, including its right to withhold payments from the design-build contractor, and is withholding funds sufficient for liquidated damages now due.
Today, ACIFA informed Caddell that liquidated damages of approximately $14.2 million are now due and payable, and allocated contractually withheld funds to the payment of the liquidated damages now due under the DBA.
The schedule, timing of completion, and cost implications will continue to be assessed. Efforts to complete construction and bring this important project online are continuing.