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Shelby Drive project faces $1M net increase after unexpected poor soils; town to receive 80% reimbursement
Summary
A change order adding $1,001,299.11 to the Shelby Drive improvements contract was approved after presentations showing worse‑than‑anticipated subsurface conditions; staff said the additional cost is 80% reimbursable by TDOT/Memphis MPO and the project completion may accelerate to December 2026 from May 2027 on revised phasing.
Deputy town engineer Tim Guatney briefed the board on Change Order No. 1 for the Shelby Drive improvements from Sycamore Road to U.S. Highway 72, explaining that field conditions uncovered much poorer soils than shown in the original design.
Guatney said the original contract with Madden Phillips was $14,208,767.86 and that three exhibit items produced a net contract increase of $1,001,299.11, yielding a new contract total of $15,210,066.97. The largest driver was a recommended chemical stabilization (hydrated lime treatment) for wet, unstable soils — an approach chosen after test sections with geogrid and gravel failed — that added $1,029,625 while other adjustments reduced cost by small amounts.
Staff told the board the wettest spring and early summer on record contributed to the discovery of deep, uncompactable soils in places where excavations reached 10 feet before hitting sound material. Guatney described the lime treatment process (excavate, mix lime with wet soils, replace in lifts and compact) and said proof rolling afterward passed.
Guatney said TDOT and the Memphis Metropolitan Planning Organization reviewed and concurred that 80% of the change order is eligible for reimbursement. The board moved and approved the change order by roll call.
The presentation also covered timeline adjustments and phasing; Guatney said the contract modifications add 59 calendar days to the schedule but that there is discussion with the contractor about adjusting lane closures to achieve earlier substantial completion in certain areas.
The board approved the item; staff said budget adjustments were previously presented and that the reimbursement arrangement reduces the town’s net exposure.
