Construction Industry Trends: August 2024 Roundup

Key Bridge Rebuild Has a Contractor

The Key Bridge rebuild took a big step forward at the end of August. The Maryland Transportation Authority Board awarded Kiewit Infrastructure with the contract to begin Phase 1 of the design and construction of the Francis Scott Key Bridge replacement. The design-build contract is worth $73 million, a small but not insignificant chunk of the $1.7 billion total project cost. Funding comes from insurance, federal funds, and other sources.

The design-build process chosen by the MDTA is seen as progressive. The project is split into two phases, which the transportation authority believes will emphasize cooperation and flexibility. Phase 1 is expected to start in 2025, and the bridge is expected to reopen in 2028.

It’s worth noting that MDTA is also looking to award an engineering contract. The authority released an RFP for an engineering consultant to serve as the agency’s representative, and the contract is expected to be valued at around $75 million.

San Francisco Transportation Sees Significant News on Two Major Projects

The City of San Francisco will be a busy place for transportation construction over the next few years. Two projects received good news: the pandemic-suspended SFO Terminal 3 West Project is underway, while the Downtown Rail Extension Project hired a construction manager.

After delays caused by the COVID-19 pandemic, the Terminal 3 West Modernization Project at San Francisco International Airport is finally underway. The project was awarded to Turner Construction before the worldwide events and involved a $2.9 billion contract to renovate the 650,000-square-foot western half of Terminal 3 and add 200,000 square feet of retail and restaurant space as well as seismic reinforcement retrofit.

The Terminal 3 West Modernization Project will also involve building a six-story structure. This separate building will house airline lounges, operational offices, and expanded security checkpoints. The goal is also for the project to meet LEED-Platinum certification, utilizing solar, recycled water, low-carbon materials, and waste heat recovery systems. The aim is for the terminal to open in the fall of 2027, with additional components completed in 2028 and 2029.

On the railway side, San Francisco’s $8.25 billion Downtown Rail Extension project has chosen its construction manager. AECOM’s Portal Connectors team was awarded the management position to oversee the 2.2-mile extension that will connect Caltrain service from its current terminal at Fourth and King to the Salesforce Transit Center.

The goal of the project is to improve the regional rail connectivity to make it easier for the Bay Area and Southern California transit systems’ some 90,000 daily riders. It’s the second phase of the Transbay Joint Power Authority’s Transbay Program, following the completion of the Salesforce Transit Center. The total for the project is around $12 billion, with $3.4 billion pledged by the federal government.

New touches to the rail system include new train stations, emergency exit and ventilation structures, and integration with the existing Bay Area and Southern California transit systems. Construction will begin in 2025 and should wrap by 2023.

Chicago’s The 1901 Project Transforms Area Around United Center

The owners of the United Center plan to transform the area around the arena. Dubbed The 1901 Project, Michael Reinsdorf and Danny Wirtz envision spending $7 billion to transform more than 55 acres surrounding the arena with a mix of housing, retail spaces, entertainment areas, and public spaces. It includes a 6,000-set music hall, an elevated park, redesigned parking facilities, and pedestrian and transportation infrastructure improvements.

The billions spent on the project make it the largest private investment in the area. Future phases will involve various housing options, including affordable, market-rate, and luxury homes. Enhanced transportation links will also improve the flow of traffic and public transportation, allowing residents and visitors to move smoothly through the revitalized area.

The 1901 Project is slated to begin in the spring of 2025, but it still requires approval from the city council. Should it be approved, the project is expected to create 63,000 construction jobs and create a significant boost for local commerce, public experience, and the life and vibrancy of the neighborhood.

DC Cybersecurity Job Worth $524 Million Goes to Clark Construction

The U.S. General Services Administration and Department of Homeland Security have selected Clark Construction to build a new 630,000-square-foot headquarters for the Cybersecurity and Infrastructure Security Agency. The $524 million project is fueled in part by the $115.8 million from the Inflation Reduction Act, making it the largest allocation of IRA money by the GSA thus far. The project is part of an effort to consolidate DHS operations while supporting domestic manufacturing and clean energy initiatives.

The new headquarters represents a large commitment by the Biden-Harris Investing in America agenda. It will feature energy-efficient mechanical systems, including chilled beams and energy recovery ventilation, to reduce energy use by 72% compared to standard buildings of comparable size and use. The goal is for the building to reach LEED Gold v4 Certification and use low-embodied carbon materials (an important factor in IRA spending).

Bethesda-based Clark will begin construction in the fall of 2024 and anticipates finishing by 2027.

WSP Embarking on Staggering $1.78B Engineering Firm Acquisition

Canadian environmental consulting firm WSP has recently announced that it plans to acquire Power Engineers for $1.78 billion—a massive number for the industry. Power Engineers Inc. is a Hailey, Idaho-based engineering and consulting firm specializing in the power, energy, and environmental consulting space. It has around 4,000 employees and 50 offices, and the acquisition will significantly expand WSP’s clout in these fields.

While the deal still needs approval from Power Engineers’ shareholders and regulatory authorities, it’s expected that Power will be under the WSP umbrella. Once the transition is complete, Power Engineers will continue to operate under the current brand name and its current president and COO, Holger Peller.

This latest move aligns with WSP’s strategy and recent activity in the sector. WSP acquired several other firms this year, including those in the MEP design space, rail consultancy, Indigenous and stakeholder engagement, and power and energy consulting.