Lane awarded $253M design-build contract for Florida highway
- The Florida DOT has awarded The Lane Construction Corp., a subsidiary of Italian firm Salini Impregilo, a $253 million design-build contract for a 2.63-mile portion of the $1.6 billion 25-mile tolled Wekiva Parkway in Seminole County, Florida, part of the Orlando metro area.
- Lane will design and construct a portion of the expressway's limited access toll road as well as an Interstate 4 interchange that will complete a beltway loop north of Orlando. Lane should start construction in 2019 and complete its work in 2022.
- Florida transportation officials have split the Wekiva project into 14 sections, four of which are being constructed under design-build contracts. The de Moya Group and C3TS, which Stantec acquired in 2012, took on a three-mile project under a $23.6 million contract, and Superior Construction last year was awarded a $234.5 million design-build contract for a six-mile section. Superior beat out Archer Western Contractors, Kiewit Infrastructure South and Lane to win the latter contract, which includes four wildlife bridges.
Florida officials have long embraced the design-build project delivery method, maintaining that it creates value for state residents. In a comparison of design-build versus design-bid-build — both using a $55 million project — FDOT said the design-build method would save $6.5 million and 656 days.
Lane is involved in another project not too far from the Wekiva Parkway, and that is the $2.3 billion Interstate 4 expansion in Orlando. Lane is a part of SGL Constructors, the project's construction arm, which also includes Skanska USA and Granite Construction. I-4 Mobility Partners is the public-private partnership that entered into an agreement with the state to design, build, finance, operate and maintain the project.
This summer, Moody's Investors Service changed its outlook on the 21-mile, toll road project from "stable" to "negative" because of a 245-day delay and extra costs of $100 million. The rating agency said that subsurface geological conditions and certain design elements had resulted in the failure of drilled shafts. I-4 Mobility Partners also had to deal with delay-causing floods in May.
However, despite the downgrade, Moody's affirmed I-4 Mobility Partners' Baa1 moderate-risk rating on $1.4 million of construction loans. The bond credit rating company also made a positive note in its report as to the I-4 group's depth of experience and the financial stability of all its members, who might be able to reduce the schedule by 100 days through the implementation of efficiencies.
- The Lane Construction Corporation Florida’s Wekiva Parkway (Section 8) Contract Awarded to Lane Construction
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