Lead Key Bridge contractor "disappointed" after split with Maryland over escalating rebuild costs
A dispute over costs caused a major shakeup with the Key Bridge rebuild, and Maryland will soon be parting ways with the main contractor, Kiewit Infrastructure Company.
The state is now looking for a replacement contractor but pledged the work will continue uninterrupted.
How it unfolded
Kiewit is not only the contractor in charge of the Key Bridge rebuild but also the company that designed the new bridge.
Bruce Gartner, the Maryland Transportation Authority's executive director, told WJZ Investigates there was a wide gap in Kiewit's cost projections and what Maryland's independent cost experts believe will be the final price tag.
"It's not the preferred option, and it doesn't happen very often, but that's how we are responsible stewards of the taxpayer dollar," Gartner said of the split.
He would not reveal how far apart both sides ended up in the negotiations, but said, "If we had been close, we would still be talking to them. ...We tried to get a sense of what was driving their cost, and the best I can say is that we were not getting the answers that we needed. That's why we made this decision."
Maryland officials believe the new bridge should cost no more than $5.2 billion on the high end of estimates.
Gartner said the state is working to finish the bridge by the end of 2030 and noted Kiewit's estimate would have added more time.
Maryland Gov. Wes Moore has repeatedly promised a speedy rebuild.
In a statement, Moore called Kiewit's price tag and timeline "unacceptable and not in the best interest of the people of Maryland."
Trump administration Transportation Secretary Sean Duffy, who has been concerned about cost, expressed similar sentiments.
Duffy's office called the move "the best possible outcome for the public."
Maryland Congressman Johnny Olszewski said the rebuild should not be partisan.
"This is a project that's good not only for our state but also for the country, and I was actually encouraged to see both the governor and Secretary Duffy on the same page here," Olszewski told WJZ Investigator Mike Hellgren.
Olszewski said, "I'm actually encouraged by and support the decision based on the information that has been shared that there were cost escalations that simply were not acceptable."
Work will not stop
Kiewit is being paid $700 million and will stay on with the project at least through the end of the year, laying the groundwork for a new bridge until Maryland picks a new contractor.
"Kiewit will continue working on the bridge. We need the public to know that work will not stop on this bridge," Gartner said.
The new contractor will work with Keiwit's design.
"I'd like to refer to it as our design now because that's part of the contract. They delivered the design to us, and that's what we will use for this bridge, and that's what we'll carry forward," Gartner said.
He told WJZ he is confident there are other contractors with the expertise to do this work, noting four companies bid on the project originally.
Kiewit response
In a statement to WJZ Investigates, a Kiewit spokesperson wrote, "Although we're disappointed by this decision, we are committed to completing our current scope of Phase 1 work, in addition to integral early construction packages. Kiewit is focused on supporting the success of this vital project for Maryland and the surrounding region."
Here is the company's full statement:
"Kiewit Infrastructure Company has been proud to partner with MDTA during Phase 1 of the progressive design-build delivery model for the Francis Scott Key Bridge Rebuild, a project crucial to the region's long-term transportation infrastructure. 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.
"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."
"While we've been unable to reach agreement to advance into Phase 2, the full construction phase, we're proud of the progress achieved and the strong working relationship developed throughout Phase 1."
"Although we're disappointed by this decision, we're committed to completing our current scope of Phase 1 work, in addition to integral early construction packages. Kiewit is focused on supporting the success of this vital project for Maryland and the surrounding region."
