Maryland drops construction company for Baltimore's Key Bridge as federal partners seek to lower costs
Maryland will start looking for new construction companies to help rebuild Baltimore's Francis Scott Key Bridge after dropping Kiewit as a contractor, the State Transportation Authority said Tuesday.
The announcement came as U.S. Transportation Secretary Sean Duffy provided an update on the rebuild effort after he joined the push to lower costs and shorten the timeline for the project.
"The [Department of Transportation] has engaged in vigorous oversight on behalf of the American taxpayer—who is on the hook to fund the bridge replacement due to Congressional action. These ongoing negotiations with Maryland officials have ultimately led to the best possible outcome for the public: a decision to rebid Phase 2 of the project," Duffy said in a statement.
Dropping the Key Bridge contractor
The Maryland Transportation Authority (MDTA) said it informed Kiewit Infrastructure Co. of the "off-ramping" on Tuesday. The agency said "off-ramping" is standard in design/build contracts when a final price can't be agreed upon.
"It became clear through negotiations that Kiewit's proposal for phase 2 construction is unacceptable, far exceeding the state's independent cost estimates," MDTA said in a statement Tuesday.
MDTA authorized a $73 million contract with Kiewit in August 2024 to complete the design and construction phases of the rebuild project.
In a statement shared Tuesday, Baltimore County Executive Kathy Klausmeier called the Key Bridge "a vital economic lifeline for Baltimore County, the Port of Baltimore, and the entire state of Maryland."
"Projects of this scale require ongoing review to ensure costs are justified, partnerships are effective, and the public interest is protected," Klausmeier said. "We support a process that prioritizes both urgency and accountability, because rebuilding the Key Bridge the right way is just as important as rebuilding it quickly."
Kiewitt responded, stating that while an agreement was unable to be reached on phase 2, "we're proud of the progress achieved and the strong working relationship developed throughout phase 1."
Kiewitt added, "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."
Federal concerns
In November 2025, the MDTA shared an updated cost and timeline for the overall project, saying it would cost between $4.3 and $5.2 billion rather than $2 billion. They also determined the project would be completed in late 2030 instead of fall 2028. The agency blamed inflation and updated design costs for the change.
The adjusted cost and time prompted concerns for U.S. Department of Transportation officials. In January, Duffy sat down with Maryland Gov. Wes Moore for a meeting about the rebuild project, with Duffy saying he would be providing oversight.
Searching for a new contractor
On Tuesday, MDTA said it will begin searching for replacement contractors for Phase 2 of the project.
"The MDTA will work in lockstep with the Federal Highway Administration to ensure the Key Bridge is rebuilt as quickly and as cost-effectively as possible while keeping safety the priority," the agency said in a statement.
The agency also said Kiewit will continue to work to complete Phase 1 of the project, which is expected to continue through the end of 2026.
In May, MDTA will host a forum to share more information about the search for a new contracting company.
Funding the Key Bridge rebuild
The Key Bridge collapsed into the Patapsco River in March 2024 after it was struck by the container ship DALI, which had lost power.
The bridge collapse killed six construction workers and snarled traffic and the supply chain for several months.
The rebuild will be fully funded by the federal government. Funding was included in a 2024 federal spending bill.
The new Key Bridge will be more than two miles long with two 12-foot lanes in each direction. The bridge will have 230 feet of clearance above the federal channel and will have a lifespan of 100 years.
