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Dive Brief:
- Omaha, Nebraska-based Kiewit is out as the design-build contractor for the replacement of Baltimore’s Key Bridge, company spokesperson Teresa Shada confirmed for Construction Dive. The Maryland Transportation Authority notified the firm Tuesday.
- In consultation with the U.S. DOT, MDTA informed Kiewit Infrastructure Co. it would not be retained for Phase 2 of construction of the megaproject, per an agency release shared with Construction Dive. During planning, it “became clear through negotiations that Kiewit’s proposal for Phase 2 construction is unacceptable, far exceeding the state’s independent cost estimates,” the release said.
- The “off-ramping” of Kiewit fits a standard provision in design-build contracts, the MDTA release said, when a final price cannot be agreed upon.
Dive Insight:
MDTA hired Kiewit for Phase 1 of The Francis Scott Key Bridge replacement project in 2024. The contract at the time was $73 million, but that cost later rose to $211 million, the Baltimore Banner reported. The company will be paid nearly $500 million for construction work, per the Banner.
Since the original award, the cost of the project ballooned, prompting the decision to switch builders. Early estimates for the job came in between $1.7 billion and $1.9 billion, but the state of Maryland in November increased the project’s expected cost to a range between $4.3 billion and $5.2 billion. That estimate also pushed the scheduled opening to the end of 2030, later than original plans.
Kiewit’s cost projection for Phase 2 was even higher than that new range, Maryland Secretary of Transportation Katie Thomson told the Banner. It would have also further extended the timeline.
“Work will not stop on the Key Bridge Rebuild project,” MDTA Executive Director Bruce Gartner said in the release. “Progress will continue, and Kiewit will fulfill their contractual obligation for Phase 1, which includes driving foundation pile and building a temporary trestle.”
Shada said Kiewit was proud to work on the initial phase of the project, and that the design-build contract worked well for the vital transit artery.
“This collaborative approach enabled our team to work closely with MDTA and advance the design at an accelerated pace and deliver strong foundational construction work to help the project advance,” Shada said via email. “The PDB model, which is intended to provide flexibility as scope, cost and funding evolves, allows project owners to assess available resources and make informed decisions about the project’s path at defined intervals.”
Phase 1 work is expected to last at least through the end of the year, per the MDTA, and the agency will host an industry forum in May to share information on future procurement.
The Key Bridge collapsed into the Patapsco River on March 26, 2024 after the container ship Dali struck one of its piers. Six construction workers performing road improvements on the bridge died.
