Connecticut Port Authority looks to engage mediator over State Pier design dispute
John Penney
New London — A mediator will likely be engaged to referee an
expensive construction dispute between the Connecticut Port Authority and the
construction manager of the $311 million State Pier reconstruction project.
Authority Executive Director Michael O’Conner told his Board
of Directors on Tuesday he expects to have a mediation plan ready in the coming
weeks ahead of selecting an impartial party that will be tasked with helping
the authority and contractor Kiewit come up with a mutually agreeable solution
on issues that cropped up at the New London staging area.
The conflict revolves around two major issues: fill on a
roughly 6,000-square-foot section of the pier's transportation corridor — about
the size of the authority’s Old Saybrook office where Tuesday's meeting
occurred — where deficient soil was found; and an improperly placed toe wall,
used for vessels to dock.
At stake is $7.1 million that the authority is withholding
as part of a final payment to Kiewit. Kiewit officials previously said the
company is still entitled to $35 million, a figure that includes the $7.1
million in dispute.
The soil issue concerns its weight rating. O’Connor said
Kiewit was paid to ensure that ground was rated to hold 650 pounds per square
foot but was only shown to hold 450.
“We’ve since learned that 450-pound number is sufficient for
the work there, so, what we thought might be a $2 million fix can be done far
less expensively with some excavation and lighter fill by Kiewit,” O’Connor
said. “But that’s not what we originally paid to have done.”
He said the toe wall might present “limitations to future
work” but can be safely used for the time being. He said repairs could take
months to complete and lead to interruptions on the pier.
“We're willing to live with it, but it still comes down to
design deficiencies that we're not willing to pay for,” O’Connor said.
Any choice of a mediator must be agreed on by both the
authority and Kiewit. O’Connor suggested the mediation meeting would take place
in October as part of an effort to “find some middle ground” between the two
parties.
Unlike an arbitrator, a neutral third-party empowered to
render a decision, a mediator attempts to get parties to reach a compromise.
“This is the people’s money and there’s already been a
significant investment into (State Pier),” O’Connor said. “If we can’t find a
figure we both agree on, we’ll figure out our next steps.”
O’Connor said previous discussions with Kiewit about the
unresolved issues have been cordial.
“There hasn’t been any yelling,” he said.
"Kiewit Infrastructure Co. welcomes the opportunity to
participate in the evaluative mediation process and views it as a constructive
step toward resolving outstanding issues," Kiewit spokeswoman Teresa Shada
said in an email. "We remain committed to working in good faith with all
stakeholders involved in the State Pier project."
Both O’Conner and board President Paul Whitescarver said the
construction issues have not impacted work at the 35-acre pier, where offshore
wind components are assembled for the Revolution Wind project off the southeast
coast of Rhode Island.
Team planning $23M apartment building in downtown New Britain to buy city-owned site for $500,000
Michael Puffer
A team selected by New Britain to develop a 64-unit
apartment building on a corner of downtown near a CTfastrak rapid busway
station will pay $500,000 for the property.
Jack Benjamin, the city’s director of planning and
development, on Monday confirmed the purchase price offered by Stamford-based
RMS Cos., Heritage Housing Inc. of Norwalk and Paul B. Bailey Architects for
the city-owned 0.85-acre lot at 125 Columbus Blvd.
Developers plan to tap low-income housing tax credits for
phase two of “Columbus Commons,” which will offer units at rates considered
affordable to households earning between 30% to 80% of the area median income,
the city said.
The city plans to help the development team apply for
grants, including a state brownfield grant. It also plans to incentivize the
development with a tax-easing agreement. Benjamin confirmed the development
site will require environmental cleanup.
According to the city’s response to questions from the
Hartford Business Journal, officials aim to transfer 125 Columbus Blvd., to
developers this fall.
Transportation improvements on the way for 8 CT towns. Here’s what to know.
Eight Connecticut towns have been tabbed to receive a share
of a
$10 million investment from the Transportation
Rural Improvement Program.
The grants are administered by the Connecticut Department of
Transportation to support rural communities who often are ineligible
for federal transportation programs. The grants were announced by Governor Ned Lamont and Connecticut
DOT commissioner Garrett Eucalitto late last month.
TRIP was established in 2022. The first round of fully state
funded grants totaling $9 million were issued in January 2024.
“Connecticut’s rural communities are often shut out of many
federal programs because of their size or density, and the state’s TRIP program
fixes that problem,” Lamont said. “Our smaller towns are one of the many things
that make Connecticut such a wonderful place to live, work and raise a family.
More importantly, these state grants will not only strengthen transportation
but help to ensure our communities remain safe and connected for future
generations.”
Among the communities receiving funds are Barkhamsted,
Bethlehem, Bolton, Burlington, Columbia, Goshen, Litchfield and Marlborough.
Burlington received $1,545,500 for roadway improvements on
West Chippen Road. Drainage improvements and a full-depth reconstruction of the
roadway are planned. In the area of the project are Session
Woods Wildlife Management Area and the Tunxis Trail hiking
area.
Burlington First Selectman Douglas K. Thompson said the
grant money is “very much welcome.”
“The road is a conduit between our communities: Bristol,
Terryville, Burlington. It’s kind of a very busy thoroughfare for our region,
so I’m really pleased that the state recognizes that it’s an important route
through our community and connecting others.”
Thompson credited state and federal lawmakers Derek Slap, John Piscopo, Henri Martin and Jahana Hayes for their support in the
town receiving the state funds.
“It’s very good to see a bipartisan effort to support our
communities,” Thompson said. “This is a welcome improvement for this heavily
used road.
“Like many small communities, some of these roads are a
little on the narrow side and are curvy,” Thompson added. “So, these funds will
be put to very good use to improve the navigation of the road, and I think
it’ll make it a little bit safer.”
Thompson said there isn’t an exact time frame for the
project to break ground as it is still in the final design phase.
Litchfield received $968,000 for a full-depth reconstruction
and drainage improvements on Campville Road. The road links Route 8 and Route
254. The road also accesses Route 8 from Humaston Brook State Park, Northfield
Brook Lake Park and Topsmead State Forest.
Raz Alexe, the director of public works and town engineer
for Litchfield, said this grant is a big deal for the town.
“This road has needed improvement throughout the years, and
we had previously received for a state grant starting with the southern part of
Campville Road for the first mile,” Alexe said. “That construction begins this
summer. This grant will help with the next mile and a half from another
intersection on Campville Road further north.”
Litchfield originally applied for the TRIP grant in 2024,
Alexe said, but the town wasn’t selected. The town reapplied in February and
found out last month that it would get the grant in 2025.
“The implications for the community are large and are very
important,” Alexe said. “First of all, this is an old cow path that when they
made it a road, Route 8 didn’t exist when it was built. So, this was an
important connector that will help the community south to north along the
corridor of Route 8 to go all the way to Torrington and Windsor.
“When Route 8 has an accident or is impassable, everything
is routed to Campville Road,” said Alexe, who added that the road is heavily
traveled and when the road was constructed, it didn’t have enough drainage.
“We are doing a full-depth reconstruction where you dig up
the subsurface, check the soils and make sure it’s compacted properly and apply
layers of asphalt on top,” Alexe said. “This will extend the life of the road
30 or 40 years if not more.”
Alexe said the two approved state projects when complete
will take care of half of Campville Road.
Barkhamsted received a $1,077,856 grant for roadway
improvements on West River Road. The 4.04-mile scenic road running along the
west branch of the Farmington River will include repaving and improved
infrastructure.
“The road is a vital corridor through the American
Legion State Forest and passes the Austin Hawes State Campground
connecting the Pleasant Valley section of town to the historic Village of
Riverton,” a news release from the Connecticut Department of Transportation
said.
In Bethlehem, $2 million was granted for roadway
improvements, including paving, drainage and safety improvements on Flanders
Road. The 1.6-mile road connects Route 6 in Woodbury and Route 61 in Bethlehem.
Bolton is reeling in $1,413,238 to replace the Lyman Road
Bridge. According to the DOT, “this project includes replacing the existing
twin 6-foot diameter asphalt coated corrugated metal pipe culverts with an
18-foot clear span by 6-foot rise precast concrete box culvert.”
The bridge connects neighboring towns and Gay City State
Park, as well as areas offering shopping and entertainment.
DOT said a $1,479,899 grant will be used in Columbia for a
project on Thompson Hill Road Bridge over Clark Brook. This road connects two
major state roads, Route 6 and Route 66.
“The project includes replacing the 5-foot diameter precast
concrete culvert with a three sided, 18-foot clear span concrete frame that
will address frequent flooding and road damage caused by inadequate drainage.
The new culvert will improve water flow, reduce the risk of flooding, and
enhance the durability and safety of the roadway,” according to the DOT.
Goshen received a grant of $1.5 million for a West Hyerdale
Drive bridge rehabilitation over the Marshapaug River. The road is the shortest
route for emergency vehicles and the public to the town center. The work is
expected to extend the life of the bridge for an estimated 75 years. The
project will line four existing corrugated metal pipe culverts.
Finally, Marlborough received a $341,179 grant for a
sidewalk extension of Lake Road.
“This project will construct more than 300 feet of sidewalk
and a crosswalk on Lake Road, as well as provide upgrades to existing crossing
technology on North Main Street,” according to the DOT.
This segment of the sidewalk “will connect the
interconnection between Blish Park and the Elmer Thienes/Mary Hall Elementary
School passing through the town center,” the DOT said.
“This program helps rural communities deliver important
safety improvement projects that may otherwise have been shelved due to a lack
of funding,” Eucalitto said. “No matter the population size, Connecticut’s
municipalities deserve to have access to funding and programs that can improve
safety and mobility.”
Builders say One Big Beautiful Bill Act will fuel construction activity
The One Big Beautiful Bill Act is opening the door for
increased construction investment, but it may also deepen existing challenges
tied to labor and supply.
Unlike the Inflation Reduction Act, which concentrated
its support
on clean energy, the One Big Beautiful Bill Act casts a wider net, said
Vance Walter, senior director of legislative affairs at Associated Builders and
Contractors.
Its most transformative provisions include the restoration
of 100% bonus depreciation, immediate expense of research and development costs
and a permanent extension of the 20% pass-through deduction under Section 199A,
said Deniz Mustafa, senior director of infrastructure finance at Associated
General Contractors of America. These serve as boons for construction activity,
according to industry sources.
“This also improves cash flow and makes it easier for
contractors to replace aging equipment,” said Mustafa. “In the construction
industry, this means it is easier for companies to access equipment that is
safer, cleaner and more efficient.”
The changes are particularly significant for small and
mid-sized contractors, where cash flow and tax predictability influence
everything from equipment purchasing to hiring.
“Businesses can now immediately expense capital investments
through 100% bonus depreciation,” said Walter. “This will encourage firms to
invest in new construction equipment and technologies, boosting safety,
quality, productivity and economic growth.”
Winning sectors
The biggest potential winner may be manufacturing
construction, said John Robbins, global head of enterprise project management
at Turner & Townsend, the U.K.-based real estate and infrastructure
consultancy. Expect more construction activity on automotive, food production
and semiconductors, all of which now qualify for the 100% deduction, he said.
“I believe this will stimulate activity and investment with
construction of new high-tech manufacturing. These tax enhancements should be
very attractive and help greenlight shovels in the ground throughout the
country,” said Robbins. “Any newly built non-residential facility whose primary
use is to manufacture, process or refine tangible goods can take the 100%
deduction.”
The provision covers a wide swath of domestic production, so
long as projects break ground between January 2025 and December 2028, and are
placed in service by 2031, said Robbins. This means projects that have been in
a holding pattern or on the design boards — the Project
Stress Index increased 11.4% in May — can “now be accelerated,”
according to Robbins.
Bottom of Form
Beyond factory construction
Other sectors likely to benefit include defense-related
construction, air traffic control improvements and traditional energy
production, said Jeff Urbanchuk, senior vice president at the American Council
of Engineering Companies. The bill also sets aside nearly $50 billion for
border security construction, he added.
That funding could lead to new contracts across the southern
U.S., potentially driving demand for firms with experience in civil and federal
work. Projects tied to air traffic control and defense infrastructure may also
open the door for specialty contractors and design firms, especially those with
experience navigating federal contracts and military specs.
Robbins added electric production, including zero-emission
nuclear power, could also see renewed construction activity due to the broader
capital-friendly structure of the bill. That may prompt developers to advance
previously delayed or underfunded power
generation work, said Urbanchuck.
“America’s engineering firms are engaged across the domestic
energy sector, designing systems that produce and transmit power generated from
traditional, nuclear and renewable sources,” said Urbanchuck. “We do believe
the Big Beautiful Bill will lead to meaningful growth.”
A rush to build
But as more construction companies benefit from greater
activity, pressure could build on labor and material pipelines already
under strain, said Joseph Molloy, tax partner at Anchin, a New York
City-based accounting, tax and advisory firm.
“The bill’s emphasis on domestic sourcing and reshoring may
increase demand for U.S.-based construction labor and materials,” said Molloy.
“[That’s] potentially intensifying workforce and supply chain pressures.”
That strain may only increase as firms rush to break ground
before other provisions phase out, said Robbins. For example, tax credits for
energy-efficient buildings are set to expire after 2026, creating urgency for
stalled or newly planned green developments.
“Timing and financing strategy now matter as much as project
cost in maximizing the new law’s benefits,” said Robbins.
Enhanced incentives for projects in opportunity zones could
also drive more construction in distressed communities, particularly in
residential and mixed-use segments, he added. Yet, even with these provisions
in play, long-term momentum still hinges on what comes next, said Urbanchuk.
“Overall, the Big Beautiful Bill is a step forward for our
industry,” said Urbanchuk. “Our attention now goes to what Congress is planning
for the reauthorization of the Infrastructure Investment and Jobs Act, which is
set to expire in September 2026.”