News
June 11, 2026

Lane Construction Joint Venture Secures $1 Billion Ohio River Tunnel Project in Pennsylvania

ConstructionOwners Editorial Team

Highlights

  • Lane Construction and Brayman Construction were awarded a $1 billion contract through their Steel City Tunnel Partners joint venture.
  • The project will deliver approximately 4.9 miles of deep tunnel infrastructure for the Allegheny County Sanitary Authority.
  • Work includes tunnel excavation, shafts, regulator structures and supporting surface facilities.
  • The system is expected to reduce combined sewer overflows by about 7 billion gallons annually.
  • Construction is scheduled to begin later in 2026 as part of a broader regional water infrastructure program.

Major investments in underground water infrastructure continue to generate significant opportunities for heavy civil contractors as municipalities expand efforts to improve environmental compliance and system resilience. In western Pennsylvania, a newly awarded tunnel project will add a billion-dollar contract to the region's construction pipeline while advancing long-term wastewater management goals.

Project Details

Lane Construction, partnering with Brayman Construction through the Steel City Tunnel Partners joint venture, has been selected to build the Ohio River Tunnel for the Allegheny County Sanitary Authority (ALCOSAN). The contract carries a value of approximately $1 billion and represents a major component of ALCOSAN's Clean Water Plan.

The project scope includes construction of roughly 4.9 miles of deep tunnel, multiple access shafts, flow regulation structures and related surface infrastructure. The tunnel system is designed to capture and transport excess wet-weather combined sewer flows for treatment rather than allowing them to enter regional waterways. Construction is expected to start later this year.

Under the joint venture arrangement, Lane Construction will lead project management activities and primary tunneling operations, while Brayman Construction will oversee shaft construction and heavy civil work. The tunnel is the first of three major underground conveyance projects planned within ALCOSAN's Regional Tunnel System.

Market Impact

The award expands Lane Construction's portfolio of large-scale underground infrastructure projects and strengthens Brayman Construction's position in the Pittsburgh heavy civil market. For both contractors, the project represents a long-duration revenue opportunity tied to specialized tunneling, geotechnical and civil construction services.

The scale and technical complexity of the work are expected to generate demand across multiple construction disciplines, including tunnel excavation, shaft construction, structural concrete, heavy equipment operations and supporting utility infrastructure. The contract also reinforces the growing role of joint venture delivery models on large public infrastructure programs.

What this means for construction owners

Across the United States, water and wastewater agencies are increasingly investing in large underground conveyance systems to address aging infrastructure, environmental regulations and stormwater management challenges. Deep tunnel projects have become a common solution for reducing combined sewer overflows in urban areas where expanding surface infrastructure is limited.

The Ohio River Tunnel forms part of a broader multibillion-dollar regional program intended to improve water quality throughout the Pittsburgh area. Once operational, the system is expected to reduce combined sewer overflows into local waterways by approximately 7 billion gallons annually, highlighting the continued growth of water infrastructure as a key market segment for heavy civil contractors and construction owners.

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