Just one bid submitted for US$779 million bridge replacement project
06 August 2024
Rhode Island, the US’ smallest state, had a significantly small pool from which to select a contractor for its US$779 million project to repair and replace a series of bridges along US Interstate 95 and state Route 10, as a Skanska USA joint-venture was the only bidder for the work.
Earlier this year, Rhode Island authorities received zero bids for a US$78 million project to rebuild the Washington Bridge in Providence. (PHOTO: Adobe Stock/Wangkun Jia)
Rhode Island authorities recently awarded the project to Skanska USA (regional construction and contracting arm of the Sweden-based Skanska), Massachusetts-based McCourt Construction and in-state bridge constructors and demolishers Aetna Bridge Co.
Contractors were invited to tender for the project in January of this year, with Rohde Island Department of Transport (RIDOT) saying the contract was one of the biggest construction projects in the state’s history.
The project includes the removal of 15 bridges from the state’s “backlog of poor and fair to poor condition bridges along I-95 and Route 10 between Providence and Warwick – a critical corridor which carries 185,000 vehicles daily,” said RIDOT.
The design-build contract will see the JV rebuild ten of the interstate bridges along the I-95, and carry out repaving works the interstate.
The contract also comprises reducing the size of state Route 10 (which accesses 95), reworking the Amtrak commuter rail electric catenary lines underneath two bridges, and re-striping the motorway lanes to update compatibility for autonomous vehicles, among other general work.
According to local media reports, this US$779 million state project is just latest to get a low number of contractor bids.
Rhode Island recently received zero bids on a program to rebuild the condemned Washington Bridge. The cost of that project is expected to be around US$80 million, but it remains in suspension due to the lack of bids – which could be a growing concern for the near – future on other US infrastructure projects.
As why project bids from contractors like the Skanska JV are so thin on the ground, major American contractor Tutor Perini – in its second quarter results – said it expected minimal competition for major projects going forward.
The company’s CEO Ron Tutor, said: “This limited competition is the result of a supply-demand imbalance as, frankly, there are so many major project opportunities and a small pool of contractors with both the physical and financial resources to prequalify, successfully bid, bond, and execute these projects.”
If this is truly the case, then established demolition contractors – both in North America and globally – could likely benefit from the lack of competition.
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