According to Signal International, which landed the $94m contract in August of last year, the Nasdaq-listed owner is looking for a new shipyard to complete the project following a dispute over delays it blamed on “major” design changes.
In a statement it accused GLDD of failing to address escalating costs and a revised timeline in an “equitable manner” and noted it intends to pursue arbitration against its former counterparty after hiring an outside firm to examine the newbuilding programme.
The PA Consulting Group, which sided with Signal, presented its findings and a proposal that outlined potential improvements to GLDD and Signal management on 21 March but it appears the patron could not be convinced as the plug was pulled soon after.
As we reported, when the Oakbrook, Illinois-based contractor first inked the order for the hopper dredge at Signal it also penned a pair of high-capacity material dump scows at BAE Systems in Mobile, Alabama.
At the time GLDD said the orders would create 250 new shipyard and engineering jobs in the region. Attempts to reach the company for comment were not immediately successful Tuesday morning.
