Signal International and Great Lakes Dredge Square Off

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April 16, 2013

The dredge in question

Signal International, Inc. made the announcement Tuesday that work toward the design and construction of an Articulated Tug/Barge Hopper Dredge for Great Lakes Dredge and Dock (GLDD) has been discontinued at the request of GLDD… and let’s just say Signal is not happy about it.

Signal and GLDD entered into the contract for both the design and construction of the AT/B Hopper Dredge in August 2012, with construction originally scheduled to begin in January 2013. At the time, GLDD hailed the $94 million dredge project for strengthening the American maritime industry and creating jobs.

Since signing, however, the project has been struck by numerous delays and has so far failed to get off the ground.

Signal attributes the delays to GLDD, saying that the company has asked for major design changes even after a revised start date. Signal says it even went as far as hiring a third-party consulting firm in an attempt to salvage the project, mitigate delays and lower costs.

Unfortunately, now Signal says that GLDD is seeking another shipyard to finish the job with the substantially revised specifications.

“Our Company reaches out to customers when we see a red flag on a program with the idea that risks can be reduced if both sides understand the problem and work together to develop mitigating solutions,” said Signal CEO, Richard Marler. “The primary consideration is providing quality products that help make our customers more successful while respecting the integrity of our company, our employees and community constituents.”

As a result, Signal has demanded arbitration under the contract in order to resolve the dispute.

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