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Dive brief:
- Omaha, Neb.-based Kiewit is out as the design-build contractor for Baltimore’s key bridge replacement, company spokeswoman Teresa Shada confirmed to Construction Dive. The Maryland Transportation Authority notified the company on Tuesday.
- In consultation with the US DOT, MDTA informed Kiewit Infrastructure Co. that would not be retained for Phase 2 of the megaproject’s construction, according to an agency statement shared with Construction Dive. During planning, “it became clear through negotiations that Kiewit’s proposal for construction of Phase 2 is unacceptable, far exceeding the state’s independent cost estimates,” the statement said.
- Kiewit’s “deactivation” conforms to a standard provision in design-build contracts, the MDTA statement said, when a final price cannot be agreed upon.
Diving knowledge:
MDTA hired Kiewit for Phase 1 of the Francis Scott Key Bridge Replacement Project in 2024. The contract at the time was for $73 million, but this cost later increased to $211 millionthe Baltimore Banner reported. The company will receive nearly $500 million in construction work, according to the Banner.
Since the original award, the cost of the project increased, leading to the decision to change builders. Early estimates for the work ranged from $1.7 billion to $1.9 billion, but the state of Maryland in November raised the projected cost of the project to a range between 4.3 billion and 5.2 billion dollars. That estimate also pushed the scheduled opening to late 2030, later than original plans.
Kiewit’s cost projection for Phase 2 was even higher than the new range, Maryland Secretary Transport Katie Thomson told the Banner. It would also have extended the deadline even further.
“Work will not stop on the Key Bridge reconstruction project,” MDTA Executive Director Bruce Gartner said in the statement. “Progress will continue and Kiewit will meet its contractual obligation for Phase 1, which includes driving a foundation pile and constructing a temporary trestle.”
Shada said Kiewit was proud to work on the initial phase of the project and the design-build contract worked well for the vital transit artery.
“This collaborative approach allowed our team to work closely with MDTA and advance the design at an accelerated pace and provide solid foundational construction work to help the project move forward,” Shada said via email. “The PDB model, which aims to provide flexibility as scope, cost and funding evolve, allows project owners to assess available resources and make informed decisions about the project’s path at defined intervals.”
Work on Phase 1 is expected to last at least until the end of the year, according to the MDTA, and the agency will host an industry forum in May to share information on future purchases.
The Key Bridge has collapsed in the Patapsco River on March 26, 2024 after the container ship Dali struck one of its docks. Six construction workers making road improvements to the bridge died.
