Honolulu鈥檚 $6 billion rail project received a slight dose of positive news Tuesday when officials opened bids for construction of three stations on the west side of Oahu.
The lowest bidder came in with a price less than anticipated, and all other offers were within the Honolulu Authority for Rapid Transportation鈥檚 target range $65 million to $80 million.
鈥淚t鈥檚 good news,鈥 HART Executive Director and CEO Dan Grabauskas said as he stared at the numbers projected on a screen inside the agency鈥檚 offices, where the bid opening occurred. 鈥淚t鈥檚 very good news.鈥
Nan, Inc. is the apparent low bidder to build the three stations at East Kapolei, the University of Hawaii-West Oahu and Hoopili, a recently approved subdivision. The company鈥檚 bid came in at just over $56 million, which is $10 million less than the next lowest offer.
HART must review Nan鈥檚 proposal before a contract is signed. Other companies also can protest the bid, which might cause a delay in awarding the contract. If Nan鈥檚 bid holds up, however, it could signal a positive change for HART.
Last year, officials were surprised by a construction bid for nine rail stations that came in at $110 million more than initial estimates, or about 60 percent higher. HART responded by splitting the nine-station package into three, three-station bids in an attempt to boost competition and reduce costs.
But when the first of the three-station packages came in millions more than expected, there was heightened concern that HART鈥檚 maneuvering might have been for naught. The project was already facing a nearly $1 billion deficit and officials were asking the Legislature for more taxes to help fill the gap.
Grabuaskas said Tuesday鈥檚 bid is a sign that HART鈥檚 plans are working聽because more companies are bidding. HART has also been able to cut costs on station design in a way that Grabauskas said shouldn鈥檛 be noticeable to riders.
For instance, he said stainless steel components of the stations can be replaced with less-expensive powder-coated aluminum. The contractors are also being given more leeway in construction practices.
Still, Grabauskas tempered his enthusiasm about Tuesday鈥檚 bid results with the reality of what lies ahead. The East Kapolei, UH-West Oahu and Hoopili stations are the least expensive and least complicated to build because they are in a remote part of the island.
That鈥檚 no longer the case once construction moves into town with more consideration for tight quarters and traffic congestion.
鈥淲e鈥檝e just got to be mindful that we have 21 stations to get through,鈥 Grabauskas said. 鈥淭his is good news, but this doesn鈥檛 mean we鈥檝e erased the deficit we projected.鈥
Officials expect to put out a request for proposals for the Kamehameha Highway station group, which includes stations at Pearl Highland, Pearlridge and Aloha Stadium, in August.
Company | Proposal Amount |
---|---|
Hawaiian Dredging Construction Co. | $73,400,000 |
Hensel Phelps | $67,234,000 |
Nan Inc. | $56,088,470 |
Watts Constructors LLC | $66,543,692 |
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Nick Grube is a reporter for Civil Beat. You can reach him by email at nick@civilbeat.org or follow him on Twitter at . You can also reach him by phone at 808-377-0246.