Maryland Rebids Key Bridge Contract After Kiewit Proposal Blows Past Cost Estimates
According to Equipment World, the Maryland Transportation Authority has announced it will not move forward with Kiewit Infrastructure Co. for Phase 2 of the Francis Scott Key Bridge reconstruction, following consultation with the U.S. Department of Transportation.
Cost Overruns Triggered Federal Pressure
The rebid follows a dramatic gap between early estimates and Kiewit’s Phase 2 proposal. MDTA’s preliminary cost estimate, issued just two weeks after the March 2024 ship strike collapse, put the project at $1.7 billion to $1.9 billion with an expected opening in 2028. By 2025, that figure had climbed to $4.3 billion to $5.2 billion, with the new bridge not expected to open until late 2030.
USDOT Secretary Sean Duffy pushed for the rebid after what his office described as costs that “ballooned and timelines lagged.” Maryland Governor Wes Moore directed MDTA to “off-ramp” Kiewit and seek other contractors. MDTA called Kiewit’s Phase 2 proposal “unacceptable, far exceeding the state’s independent cost estimates.”
Kiewit, for its part, acknowledged the decision, stating it “respects MDTA’s decision” and will continue work on early construction packages already underway while coordinating with the client on next steps.
What It Means for Subcontractors
- Scope freeze incoming. Subcontractors expecting to mobilize on Phase 2 work should expect delays while MDTA runs a new procurement process. Timing is undefined.
- Early packages continue. Kiewit confirmed it remains under contract for early construction packages already underway, so some field work is still proceeding. Verify with your prime contractor which scope falls under existing awards versus Phase 2.
- Progressive design-build carries risk. This project used a progressive design-build contract structure. Subs on large alternative-delivery projects should build contract review into their workflow and track phase gates closely.
- Re-bid means new GC, possibly new sub list. When a contract is rebid with a new prime contractor, existing subcontractor relationships don’t automatically carry over. Companies positioned for this work should be ready to re-qualify under whoever wins the new award.
- Federal backstop is in place. The federal government has committed to covering 100% of the collapse cleanup costs, meaning funding is not the issue here. The rebid is a scope and cost dispute, not a funding gap.
