The Alabama Department of Corrections said Friday the state is collecting $14.2 million in damages from Caddell Construction after the Montgomery-based contractor missed Thursday’s completion deadline on the Governor Kay Ivey Correctional Complex in Elmore County.
The $1.25 billion, 4,000-bed complex is more than 85% complete and construction continues, according to ADOC. Caddell remains obligated under its design-build agreement to finish the job at the final guaranteed maximum price.
“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,” the department said.
“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.”
The Alabama Corrections Institution Finance Authority, the state entity that finances and holds the contract for the prison, has already withheld payments from Caddell to cover the bill.
“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,” ADOC said. “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.”
ADOC flagged in July a “reasonable concern” that Caddell would not finish on time. The October 15 deadline had already been moved back from May.
State Sen. Greg Albritton (R-Atmore), Chairman of the Senate’s general fund budget committee, and a member of the prison oversight committee, said at the time the state has fully financed its share of the project and the contractor is responsible for any additional costs from a delay.
The complex will be Alabama’s first new prison in more than 30 years and the largest in the state, with 54 buildings including dedicated medical, mental health and vocational education facilities.
“The schedule, timing of completion, and cost implications will continue to be assessed,” ADOC said. “Efforts to complete construction and bring this important project online are continuing.”
Grayson Everett is the editor in chief of Yellowhammer News. You can follow him on X @Grayson270.
