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Contractor Defaults on I-40 Bridge Project

A contract with National Bridge Builders LLC, of Kernersville, has been terminated by the N.C. Department of Transportation.​​​

​MARION – The contractor working on a $12.3 million project to replace a bridge over Interstate 40 in McDowell County has been found in default of its contract.

The contract with National Bridge Builders LLC, of Kernersville, has been terminated by the N.C. Department of Transportation for the contractor’s failure to resolve payment issues, provide project milestones with a plan of action, and provide sufficient labor and equipment to complete the project. 

“Unfortunately we have run out of options with this contractor,” Division 13 Engineer Mark Gibbs said. “This is unfortunate for McDowell County residents and folks who drive through the construction zone. We will work with the bonding company and a future contractor to complete the project as quickly and efficiently as possible.”

The department has well-established procedures in place and experience in completing projects with bonding companies.

For all NCDOT contracts, the state agency requires the contractor to have a bonding company in case NCDOT is forced to terminate a contractor’s right to work on a project. 

In this case, the bonding company, Frankenmuth Insurance Company, is now responsible for the project to replace the bridge on Sugar Hill Road (Exit 81) with a three-lane structure plus additional safety and mobility improvements. 

The project delay and shift in contractors will not cost the state any additional funds, as a bond secures the completion of the original contract and any additional costs.  

Construction began on the project in July 2019, with an original completion date of March 2022. 

Over the next several months, Frankenmuth will collect information, documents and data, before finding another contractor to complete the work. Traffic will remain in its current pattern until construction resumes. 

No construction activity will occur until a new contractor is hired to take over the job. The new contractor is expected to be hired later this year. NCDOT crews will maintain the roads, erosion control and other aspects until the contractor is hired.

National Bridge completed approximately 55 percent of the work and has been paid $7.1 million. It completed half of the Sugar Hill Road bridge over I-40. 

The next contractor will have to shift traffic, build the second portion of the bridge, and finish extending the eastbound on-ramp, complete drainage improvements, plus traditional finishing with new asphalt and lane markings. A timetable will become clear once a new contractor has been hired.




***NCDOT***

2/24/2022 3:39 PM