Hampton Roads Transit awarded a contract Thursday to build the downtown section of light rail that is nearly $15 million more than what was budgeted.
The $42.4 million contract was awarded to Skanska USA Southeast Inc. to lay track from Harbor Park to Eastern Virginia Medical Center. The work was originally budgeted at $27.7 million.
HRT officials said there's ample contingency money in the $232.1 million budget - nearly $29 million - to cover the overage. While any overruns beyond the contingency would have to be covered by the city of Norfolk, HRT officials are working to identify additional resources in case the project goes over budget.
"It's too early right now to determine what the overall impact will be on the final budget," said Jayne Whitney, HRT's senior vice president for development.
Seven more contracts have yet to be bid for stations, operations systems, park-and-ride lots, a maintenance facility and buses. Among the first three contracts already awarded, two were slightly under budget and one was a little over budget.
Michael Townes, HRT's president and CEO, said the transit agency is preparing for possible changes to the project's schedule and budget. Light rail is expected to open in early 2010, but that schedule may slip.
HRT took extra time to evaluate the downtown proposals because they were so high, which delayed the start of construction. There were also delays relating to demands by Norfolk State University for the section of rail being built next to the campus.
The contract awarded Thursday covers nearly half of the project length. About $9.8 million of the overrun costs are because of design changes, Whitney said. The enhancements include installing brick pavers instead of concrete where rail crosses streets, imbedding the entire track in the road instead of just through the heart of downtown, an additional signalized crossing, and extra utility work.
Close to $5 million in additional costs can be attributed to financial risks assumed by the contractor when digging into downtown streets, Townes said.
To qualify for federal money, Townes said, HRT had to submit a budget to the Federal Transit Administration before design was completed for the rail line.
"We knew if we were going to have a problem with a contract, it would be this one, because there's a lot of unknowns when you get into the streets of downtown," City Councilman W. Randy Wright said.
Three bids were submitted ranging from $42.1 million to $44.8 million.
Suburban Grading and Utilities Inc. was the lowest bidder at about $350,000 less than Skanska's. However, Suburban was disqualified by HRT for not meeting certain requirements. Suburban is now suing HRT.
Skanska is already building the light-rail track between Harbor Park and Newtown Road. The FTA has committed $128 million to the project. The city has dedicated $33 million, and the state will contribute $31.9 million. About $39 million is coming from other federal sources.
The line will run from Eastern Virginia Medical Center through downtown to the city line at Newtown Road. It is projected to carry 6,000 to 12,000 passengers a day.
Debbie Messina, (757) 446-2588, debbie.messina@pilotonline.com
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Budget
When was the 27.7 million originally budgeted? What percentage has the US dollar devalued since then? I am not claiming to be any kind of authority on economics, or light rail for that matter. I would have to assume that originally when calculated, the US Dollar could buy a lot more. This would almost have to be a contributing factor, as well as any delays.
50 percent more
According to at least one study done by the FTA, typical cost over runs amount to fifty percent of the original price. So about 115 million on this project. IF they don't run into any surprises downtown. Remember, Norfolk has 200 years of history. That's 200 years of gotcha's waiting to be discovered.
Interesting
Cost over runs includes enhancements to the system? Did HRT submit a proposal knowing there would be enhancements, but left them out to lower the cost to get it approved? Why did all these "enhancements" all of a sudden spring up after construction started? Didn't HRT and norfolk know there would be "financial risks" during construction? Did they forget to include them in the proposal to the feds and the state? Seems there is alot of questions as to why HRT and norfolk "forgot" to include all these "extras" in the bid. Seems the taxpayer is again being blind-sided by shaddy politicians that lie and cover up the true facts. How much more over the $230 million are we going to have to spend for norfolk's choo-choo to no where?
Light rail
WOW! Who would have thought it would go over budget? Tell me it isn't so!
"would have to be covered by the city of Norfolk"
It didn't take long for the specter of unlimited taxpayer liability to show itself. Thank God VB voters rejected the light rail debacle.
Increases traffic congestion
That is what it does. In Charlotte they are up in arms about the increased congestion and traffic jams due to at grade crossings. Also up in arms about the pollution due to trucks and cars stuck sitting idling at the crossings and resulting jams downtown. Residents living along the route are complaining about the awful noise (does anyone actually want to live next to a RR track) and the decrease in the values of their property due to the noise, traffic, and undesireable element associated with the train. Not even a good development starter.
What traffic congestion does the starter line reduce?
How does this waste of tax funds reduce traffic congestion? What traffic percentage of congestion does this reduce? How much, when? This project is far more about more development then reducing traffic congestion.
LRT
It seems that anytime there is a discussion about the light rail, there is a group who complain about the system and talk about the problems in Charlotte, Saint Louis, etc. Have you actually looked at the newspapers in these cities to see what is being said about the system? I did a search on Charlotte's newspaper today, and there was talk about needing to expand the park-and-ride lots as they have run out of room for parking, and the number of riders is way over projection. Likewise, doing a google search on the light rail systems overall showed more positive talk than negative. I am a young professional (28 y.o. w/ a bachelor's) and I will be taking the light rail everyday to my job. I am so glad this project is coming along!
Over budget!
Is anyone surprised?
It is over budget
It is over budget and yes that is to be expected but should that be? I just think we deserve a fair assesment and if I'm stomping my feet as is stated; so be it. I'm waltching the blight outside of my house and the crumbling neighborhood streets and yes, i want alrternative sources of transit but I want it regional. This would be an answer to the issues before us but regionalism does not exist here
Joke!
Just like the HOV lanes this waste of tax payers $$$ will solve nothing!
Added congestion due to less lanes for cars through downtown and light rail crossing gates or lights to allow an empty pet project to pass!
$29M hardly seems ample
Considering the history with these pigs. Charlottes went over budget by over $200M and St. Louis came in over $115M over budget and 15 months late. It's interesting to note that in the face of potential budget over runs and shoddy right of way aquisition, they are adding features that add cost instead of looking for ways to hold the line or reduce costs. Completely irresponsible and typical. They now have us by the short hairs and there is nothing the taxpayer can do. How far along are we and we already have our first law suit as well? Nice. That should bump the schedule back a good bit as they cannot award the contract until its settled. Oh gosh, then you push the contractor into a different working season than anticipated or into acceleration leading to a claim for compensation. Then you also get another claim for material and labor cost escalation due to the delay....and on it goes.
Making no Sesne
If everyone nknew that there was going to be unforseen conditions thru the streets of Norfolk, than why was the estiamte so low for that work. Just makes no sense, than again, this is our tax dollars at work, so why should it. Also advertising that you have a HUGE contingencey will nat make the next bid go well either.
Refreshing
It's always wonderful and refreshing to see the usual suspects on here stomping their feet and throwing a temper tantrum over anything that might help improve this region. I would assume the naysayers below my comment have never done any sort of home improvement work or involved in a major construction project. Unexpected costs always come up, things don't always work out 100% like planned... this is why they built in some funds to cover these. Sounds like excellent planning to me. I'm guessing that if the folks below were running the project, they'd have every dollar earmarked at the start and if one thing went awry, they'd scrap the project.
And so it starts
Already this silly project is over-budget. $230 million tax dollars for a choo-choo to shuttle people around downtown norfolk. Should have bought more NET buses and used the taxpayer funding for true transportation issues or realistic traffic congestion relief.
And it's only half? The whole redevelopment incentive is only 7 miles long. We are wasting $44 million on less than 4 miles of train track?
And Mr. Wizz-bang is already forecasting doom and gloom in the schedule. Why not tell the truth? The project will be millions over budget and never be finished on time. Be honest HRT. Citizens/taxpayers are not as dumb as you would like to believe they are!
Light rail is....
a black hole......they just keep pouring taxpayers' money into it....it's amazing to me that the project is barely off the ground and there are budget over runs...by the time this albatros is complete, the city will have to charge so much that the ridership will not be able support the operating cost......then it's back ninto the taxpayers' pockets....Norfolk never learns....
Steven mis-informed about planning and comulative impact
Stephen; you look like another of the mis-informed unknowledable folks of urban planning. With your logic of of criticizing building through downtown due to unforeseen utility lines I guess your logic would be to promote more sprawling big box development that is unsustainable. further, I guess you are un-informed at the huge inflation factor facing commercial construction.
I guess your only advocacy is support sprawl, ignore sustainable development, let the roads congest, impacting the economic development of a city and region. yes it all relates. Its more than focusing on just day by day existence but leaving a legacy of great foundation of infrastructure for our future generation.
Suggest for research look at www.planning.org or gogle new urbanism or look at most of the urban planning corriculum tought by our urban planning universities (i.e. Virginia Tech, UVA, etc.) and you will Light Rail and transit oriented development with investment by the public sector is the most 'valued' way to create a sustainable community.
Let the fun begin
Not bad, only a 53 percent cost over run for one section. And a lawsuit too! Heck at the rate things are going, the city will be on the hook for 100 million more in no time. That's what happens when you low ball big projects in order to get them approved.