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1/16/2017



Rail News: Passenger Rail

L.A. Metro considers Tutor Perini joint venture to build section two of Purple Line extension


The Los Angeles County Metropolitan Transportation Authority (Metro) staff this week will recommend a Tutor Perini Corp./ O & G joint venture to build the second phase of the Purple Line extension.

Agency staff on Jan. 19 plan to present the recommendation to the Metro board's construction committee. The joint venture's $1.37 billion bid was about $500 million lower than competitors' bids, Metro officials said in a press release.

The agency received three proposals in June 2016. The other bidders include a Skanska-Obayashi joint venture and a Walsh Strabag joint venture.

After a "thorough and extensive competitive bidding process," Metro determined that the Tutor Perini team had the best value proposal in terms of its technical and project management elements, agency officials said.

The company previously built segments two and three of the original Metro Red Line. The contractor "experienced construction challenges" on the second section, leading to schedule delays and cost overruns in the mid-1990s, according to the agency.

However, Tutor completed the third and final section of the subway to North Hollywood six months ahead of schedule and within the project's budget, Metro officials added.

The full Metro board is expected to consider the recommendation at its Jan. 26 meeting. The agency plans to implement a "strong oversight plan with experienced staff" to make sure the project remains on time and on budget, Metro officials said.

That plan includes executive partnering between Metro and the contractor to resolve project claims and changes. The agency also will pursue a collaborative approach to third-party issues, Metro officials said.

Tutor Perini/O & G and their major subcontractors have built subway tunnels for projects in San Francisco, Seattle and New York City.

L.A. Metro's recommendation comes after the agency earlier this month secured $1.6 billion in federal funds for the Purple Line extension.



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