Construction & Claims: March 2023

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Welcome to Construction & Claims, a periodic digest of the headlines, statutory and regulatory changes and court cases involving construction news, claims, bid protests, contract administration and payment-related disputes. 

If there is a particular subject or jurisdiction you’d like to see covered, please let us know.

California Public Transportation Projects To Receive $2.5 Billion in New Funding

In a powerful statement of commitment to California’s infrastructure, Gov. Gavin Newsom recently declared that $2.5 billion will be awarded for numerous in-progress public transportation projects throughout the state. “The projects funded represent critical transportation and will provide alternatives to driving with access to a modernized, public transit system,” said Governor Newsom. “California is unwavering in our commitment to our world-leading climate agenda, including record levels of investments in public transportation projects to electrify fleets, expand and improve service and spark ridership growth.”

The Office of Governor specified that funds will be awarded as grants through the California State Transportation Agency (CalSTA) and identified multiple existing projects that are designated to receive such grants, including:

  • $600 million for LA Metro’s East San Fernando Valley Transit Corridor project to complete the 6.7-mile initial segment between Van Nuys/Orange Line and Van Nuys/San Fernando stations, scheduled by 2030.
  • $407 million for the Inglewood Transit Connector, putting it at full funding. Scheduled to be completed in time for service to support the 2028 Los Angeles Olympics, the project previously received $95 million in TIRCP funding.
  • $375 million for the Santa Clara Valley Transportation Authority’s BART Silicon Valley Phase II Extension project, which will bring BART service to downtown San Jose and Santa Clara. Scheduled to be completed in 2033, the project previously received $750 million in TIRCP funding.
  • $367 million for the Peninsula Corridor Electrification project, which is electrifying Caltrain rail service and acquiring new electric multiple unit trains for improved and more frequent service. Scheduled to be completed in 2024, the project previously received $20 million in TIRCP funding.
  • $142 million for the Valley Rail project, ensuring completion of nine project components stretching throughout the Altamont Corridor Express and San Joaquin service areas. The project, scheduled to open in phases beginning in 2025, previously received $900 million in TIRCP funding.
  • $19 million for the San Bernardino County Transportation Authority’s West Valley Connector Bus Rapid Transit and Zero-Emission Bus Initiative, which will introduce a new 19-mile bus rapid transit system connecting Rancho Cucamonga, Ontario Airport, Ontario, Montclair and Pomona. Scheduled to be completed in 2025, the project previously received $15 million in TIRCP funding.

An additional $1.4 billion will be awarded by CalSTA to new transit projects in April 2023. Moreover, Governor Newson has pledged billions more into funding over the next few years.

February 2023’s Groundbreaking for JFK’s New Terminal 6 Project

The $4.2 billion new Terminal 6 project at John F. Kennedy International Airport enjoyed its groundbreaking on February 24, 2023. The massive project—announced in November 2022 by New York Governor Kathy Hochul—is a public-private partnership between the Port Authority of New York and New Jersey and JFK Millennium Partners. At 1.2 million square feet, the new terminal will include 10 gates (9 of which will be wide-body) and will create in excess of 4,000 jobs, including 1,800 union construction jobs.  The new terminal will directly connect with JetBlue’s Terminal 5. 

According to the Governor’s Office, the space will contain 100,000 square feet of world-class shopping and dining highlighting local restaurants and craft beverage options. “People will not know where they’ve landed, those who’ve come here for many years,” said Governor Hochul. “Restaurants and little local businesses that have a chance to get a foothold here. Public art, recreation spaces.”

The project will be completed in two phases with new gates expected to be opened in 2026 and final construction completed in 2028. The Terminal 6 project is part of the overall $18 billion renovation and rebuild of JFK.

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