The Nevada Department of Transportation board of directors Tuesday terminated the contract for the Galena Creek Bridge between Reno and Carson City.
NDOT Director Jeff Fontaine said that will clear the way to open bids for a new contract in October.
Kraemer and Sons of Phoenix refused to complete the bridge, one of the largest ever built in Nevada, saying their experts don't believe it would be safe to erect the huge truss structure designed to span the creek.
Fontaine said the disagreement involves the safety of raising the trusses, not of the bridge design.
"The stability and safety of the final bridge has never been a consideration," he said.
He said Kraemer's experts believe it wouldn't be safe because of wind conditions in the area while the state's experts say it would.
Kraemer CEO Michael Fischer said the termination is "a reasonable, professional approach to resolve the disputes between the parties."
Fontaine termed it a "no fault termination" of the contract.
He said in an attempt to get the project back on schedule, the new contract will be combined with the contract to build the roadway for Interstate 580.
Kraemer has been paid $46 million of the $79 million contract and agreed to make sure all the subcontractors are fairly paid for any work they have done.
The 1,719 foot-long bridge is the largest component of the I-580 project, which will complete the freeway between Reno and Carson City. At its highest, it will be 302 feet above the creek along the hills on the west side of Pleasant Valley.
Fontaine told the board headed by Gov. Kenny Guinn he believes a road builder and a bridge erector will probably combine forces to bid on the project.