I-69: The Perils of P3s

After three years of start-and-stop work by a P3 developer upgrading a segment of I-69 near Bloomington, the Indiana Finance Authority (IFA) finally seems ready to terminate the 35-year DBFOM agreement it signed in 2014 and restart work under a construction management contract, sources say.
Two of the losing bidders for the P3, Walsh Group and Lane Construction, competed for the CM contract, which IFA will award once termination details are settled. Completion of the project is now set for August 2018, almost two years late.
IFA awarded a $370-million availability pay DBFOM contract to Isolux Infrastructure in 2014. Its bid included a very low design-build price, which, at $325 million, was $75 million less than Walsh‘s bid.
Work is about half completed on the 22-mile Segment 5 of I-69. IFA recently said it would take nearly $237 million to finish the project, and that $72 million was available. That means $164 million is needed to “complete construction and resolve claims,” it said.

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About Bill Reinhardt

Editor of Public Works Financing newsletter
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