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Baltimore bridge costs are rising, legal actions pile up

The cost of clearing the collapsed Francis Scott Key Bridge from the Patapsco River in Baltimore has risen by more than 40% since July, to more than $71m, according to local reports.

Maryland officials initially awarded a $50m contract to Sweden-based construction company Skanska, which has a US operation headquartered in New York. That contract would cover the clearing of large sections of highway bridge trusses, steel girders, the main bridge deck and concrete parapets.

The increase in estimated cost to $71m, which the Board of Public Works is expected to approve when it meets on October 2nd, covers the cost of cranes, large hopper barges, labour and equipment for an additional two weeks of work and processing of steel from the bridge’s main span, which were not considered in the original cost estimate, according to state meeting documents.

The Maryland Transportation Authority said on September 23rd that the modification in the contract specifications and price was needed to compensate Skanska for the total work on this emergency procurement,

The early estimates for the Key Bridge removal were based on Skanska’s demolition of the old Governor Harry Nice Memorial/Senator Thomas “Mac” Middleton Bridge. They changed after contracting employees and subcontractors arrived on site, according to Board of Public Works meeting documents.

Skanska found that large sections of the Key Bridge had settled into the bottom of the river, requiring team members to find and mobilize specialized equipment. That saw Maryland and Skanska extend their initial timeline by two weeks; the additional work and equipment added another $21m to the contract.

The Skanska contract was administered through independent state agency the Maryland Transportation Authority (MDTA),which is responsible for the state’s eight toll facilities, including the Key Bridge. The state has covered its contract using money set aside from toll revenue, but officials are expected to apply for federal reimbursement.

A portion of the proceeds from a $350m Chubb insurance payout is also available to cover debris removal and salvage work, according to the MDTA.

Meanwhile, the legal suits against the owner and the operator of the Dali, which was the immediate cause of the bridge collapsing on March 26th when it crashed into a bridge support shortly after leaving port. Maryland officials announced a new lawsuit on September 24th, seeking punitive damages against Grace Ocean Private Ltd. And Synergy Marine Group as well as costs associated with cleaning up the wreckage and rebuilding the bridge. It also cites lost toll revenues, environmental contamination, damage to the state’s natural resources and other damages. Officials said they’re still working to quantify the total monetary loss.

Also, the construction company that employed six workers who died when the Dali struck the Key Bridge has filed suit against the owner and operator. Hunt Valley, Maryland-based Brawner Builders Inc allege that the owner and the operator acted negligently, leading to the fatal collapse. All of the suits filed in the past few days seek to challenge the attempt by the owner and operator to limit liability under a 19th century US law. That law sets a six-month deadline for challenges. It was filed early in April by Grace Ocean Pte Ltd and by Synergy Maritime, using a formula that would have restricted total liability to less than $50m.

The Department of Justice also filed a suit against the companies last week, seeking $103m in damages for the cleanup and removal effort, plus an unspecified amount in punitive damages. The families of three of the construction workers who died in the Key Bridge collapse in Baltimore filed similar suit.