MONTGOMERY, Ala. – Construction on the Gov. Kay Ivey Correctional Complex in Elmore County was not completed on time, the Alabama Department of Corrections confirmed on Friday morning.
Design-build contractor Caddell Construction Co. failed to complete the facility by the contractually-established final deadline of Oct. 15 and now owes the state of Alabama $14.2 million in “contractual liquidated damages.”
If the company doesn’t complete the project by Nov. 16, it owes an additional $7.1 million in damages.
The project’s construction is more than 85% complete, according to the ADOC.
The department told Alabama Daily News on Friday morning that the Alabama Corrections Institution Finance Authority 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.”
ACIFA, the state body in charge of funding new prisons, informed Caddell today of the damages due and allocated contractually withheld funds to damage payments, the ADOC said.
This is a breaking news story and will be updated as more information comes available.