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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 +TVc2VUK/mdzLD8atmQsTg==

<SEC-DOCUMENT>0000902664-06-001832.txt : 20060717
<SEC-HEADER>0000902664-06-001832.hdr.sgml : 20060717
<ACCEPTANCE-DATETIME>20060717193555
ACCESSION NUMBER:		0000902664-06-001832
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060713
FILED AS OF DATE:		20060717
DATE AS OF CHANGE:		20060717

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SHAW GROUP INC
		CENTRAL INDEX KEY:			0000914024
		STANDARD INDUSTRIAL CLASSIFICATION:	MISCELLANEOUS FABRICATED METAL PRODUCTS [3490]
		IRS NUMBER:				721106167
		STATE OF INCORPORATION:			LA
		FISCAL YEAR END:			0831

	BUSINESS ADDRESS:	
		STREET 1:		4171 ESSEN LANE
		STREET 2:		1ST FLOOR
		CITY:			BATON ROUGE
		STATE:			LA
		ZIP:			70809
		BUSINESS PHONE:		2259322500

	MAIL ADDRESS:	
		STREET 1:		4171 ESSEN LANE
		STREET 2:		11TH FLOOR
		CITY:			BATON ROUGE
		STATE:			LA
		ZIP:			70809

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			GENDELL JEFFREY L ET AL
		CENTRAL INDEX KEY:			0000948904

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12227
		FILM NUMBER:		06966018

	BUSINESS ADDRESS:	
		STREET 1:		31 WEST 52ND ST
		STREET 2:		17TH FLOOR
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10019

	MAIL ADDRESS:	
		STREET 2:		200 PARK AVENUE SUITE 3900
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10166
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-07-13</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000914024</issuerCik>
        <issuerName>SHAW GROUP INC</issuerName>
        <issuerTradingSymbol>SGR</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0000948904</rptOwnerCik>
            <rptOwnerName>GENDELL JEFFREY L ET AL</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1></rptOwnerStreet1>
            <rptOwnerStreet2>55 RAILROAD AVE.</rptOwnerStreet2>
            <rptOwnerCity>GREENWICH</rptOwnerCity>
            <rptOwnerState>CT</rptOwnerState>
            <rptOwnerZipCode>06830</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>1</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, no par value</value>
            </securityTitle>
            <transactionDate>
                <value>2006-07-13</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>115000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>21.71</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                    <footnoteId id="F3"/>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>8685500</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Stock, no par value</value>
            </securityTitle>
            <transactionDate>
                <value>2006-07-14</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>P</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>37600</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>21.17</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                    <footnoteId id="F4"/>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>8723100</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>I</value>
                </directOrIndirectOwnership>
                <natureOfOwnership>
                    <value>See Footnotes</value>
                    <footnoteId id="F1"/>
                    <footnoteId id="F2"/>
                </natureOfOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
    </nonDerivativeTable>

    <footnotes>
        <footnote id="F1">The Reporting Person is the managing member of Tontine Management, L.L.C. (&quot;TM&quot;), a Delaware limited liability company, the
 general partner of Tontine Partners, L.P. (&quot;TP&quot;), a Delaware limited partnership.  The Reporting Person is also the managing
 member of Tontine Capital Management, L.L.C. (&quot;TCM&quot;), a Delaware limited liability company, the general partner of Tontine
 Capital Partners, L.P. (&quot;TCP&quot;), a Delaware limited partnership.  The Reporting Person is also the managing member of Tontine
 Overseas Associates, L.L.C., a Delaware limited liability company (&quot;TOA&quot;), the investment adviser to Tontine Capital
 Overseas Master Fund, L.P., a Cayman Islands partnership (&quot;TCO&quot;), Tontine Overseas Fund, Ltd., a Cayman Islands corporation
 (&quot;TOF&quot;) and certain managed accounts.</footnote>
        <footnote id="F2">The Reporting Person directly owns 0 shares of the Common Stock.  TP directly owns 3,403,398 shares of Common Stock.  TCP
 directly owns 2,500,600 shares of Common Stock.  TCO owns 316,100 shares of Common Stock.  TOF and certain managed accounts
 directly own 2,503,002 shares of Common Stock.  All of the foregoing shares of Common Stock may be deemed to be beneficially
 owned by the Reporting Person.  The Reporting Person disclaims beneficial ownership of the Issuer's securities reported
 herein for purposes of Section 16(a) under the Securities Exchange Act of 1934, as amended, or otherwise, except as to
 securities directly owned by the Reporting Person or representing the Reporting Person's pro rata interest in, and interest
 in the profits of, TP, TM, TCP, TCM, TOA, TCO and TOF.</footnote>
        <footnote id="F3">Common Stock purchased by TP, and TOF and certain managed accounts.</footnote>
        <footnote id="F4">Common Stock purchased by TCP and TCO.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Jeffrey L. Gendell</signatureName>
        <signatureDate>2006-07-17</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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