Kiewit Infrastructure Co. has been removed from the next phase of Baltimore’s Francis Scott Key Bridge reconstruction after Maryland officials determined the firm’s cost proposal significantly exceeded state estimates, marking a major shift in one of the nation’s most closely watched infrastructure projects.
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The Maryland Transportation Authority (MDTA) notified the Omaha, Nebraska-based contractor Tuesday that it would not be retained for Phase 2 of the design-build project, according to agency officials. The decision follows negotiations in which Kiewit’s proposal came in well above the state’s independent cost projections.
In a statement, MDTA said it “became clear through negotiations that Kiewit’s proposal for Phase 2 construction is unacceptable, far exceeding the state’s independent cost estimates.” The agency added that removing the contractor — referred to as “off-ramping” — is a standard provision in design-build agreements when parties cannot agree on a final price.
Kiewit was initially selected in 2024 to handle Phase 1 of the bridge replacement under a $73 million contract, which later rose to $211 million. The company is expected to receive nearly $500 million for work completed during the early phase, according to reports.
However, the overall cost of the Key Bridge rebuild has escalated dramatically. Early estimates ranged from $1.7 billion to $1.9 billion, but Maryland officials revised projections in late 2025 to between $4.3 billion and $5.2 billion. The updated estimate also pushed the anticipated completion date to 2030.
Kiewit’s proposal for Phase 2 reportedly exceeded even those revised figures and would have extended the project timeline further, Maryland Transportation Secretary Katie Thomson said.
Despite the change, MDTA emphasized that work on the project will continue without interruption.
“Work will not stop on the Key Bridge Rebuild project,” MDTA Executive Director Bruce Gartner said in a statement. “Progress will continue, and Kiewit will fulfill their contractual obligation for Phase 1, which includes driving foundation pile and building a temporary trestle.”
Kiewit confirmed its departure from the next phase while expressing pride in its contributions to the project’s early progress.
“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,” spokesperson Teresa Shada said via email. “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.”
Phase 1 work is expected to continue through at least the end of 2026, with Kiewit completing foundational elements critical to the bridge’s reconstruction.
The MDTA also announced plans to host an industry forum in May to provide details on the next procurement phase, signaling the state’s intent to quickly identify a new contractor to carry the project forward.
The Key Bridge collapse on March 26, 2024, after a container ship struck one of its piers, killed six construction workers and halted a vital transportation link over the Patapsco River. The rebuild has since become a high-priority infrastructure effort with national attention.
Originally reported by Zachary Phillips, Senior Editor in Construction Dive.
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