Construction Company Requests ODOT Terminate $130 Million Contract

YRC signed a contract with ODOT worth $130 million in 2005 to complete the project.

The Highway 20 Pioneer Mountain-Eddyville improvement project started in 2006. Photo courtesy: ODOT

(SALEM) - Yaquina River Constructors, the prime contractor for the Highway 20 Pioneer Mountain-Eddyville improvement project, has taken the unusual step of requesting that the Oregon Department of Transportation terminate its contract to build a new, 7-mile section of highway across the Coast Range between Corvallis and Newport.

This request to terminate follows months of discussion concerning landslide mitigation measures throughout the project site.

Although ODOT believes a successful project is still possible with YRC, the agency is willing to consider a negotiated contract termination.

The agency will discuss the proposal with YRC in the coming weeks to determine if termination would be in the best interests of Oregon taxpayers.

YRC and its parent company, Granite Construction Inc., estimate the mitigation measures necessary to stabilize 11 significant landslide areas within the project would cost the company approximately $61 million. ODOT believes the slope stabilization can be completed for less than that amount.

Whether or not ODOT decides to terminate the YRC contract, the project could be delayed for up to two years as landslide assessment and stabilization work is completed.

This delay will not jeopardize environmental permitting or funding for the project. ODOT is determined to resume construction on this project quickly.

YRC signed a contract with ODOT worth $130 million in 2005 to complete the project.

Construction started in 2006.

The project will replace a 10-mile segment of the highway where 90 percent of the section is marked No Passing.

The new, 7-mile section will be 3 miles shorter with wider shoulders and multiple passing lanes.

The project includes the construction of eight new bridges and the replacement of one bridge.