I-35W bridge reconstruction contractor set to make $25million in incentive

The I-35W bridge over Mississippi River in Minneapolis opened to traffic today. The Flatiron-Manson JV opened the bridge for traffic more than three months ahead of schedule.

The Mn/DOT press release explained that the "Contractors will continue final project work at off-site areas and the project office in the coming weeks, but no closure or traffic disruptions are expected with those activities. Flatiron-Manson was given notice to proceed on construction on Oct. 15, 2007. Sept. 15 marks 337 days of construction work on the project."

Flatiron-Manson won the bridge reconstruction contract based on cost plus timing bid. The JV scheduled substantial completion in 437 days.

According to the terms of the contract, Mn/DOT would provide an incentive of $7 million for substantially completing the bridge on or before December 24th, 2008 (end of 437 days). In addition, the department would grant an additional $18 million for advancing substantial completion by 90 days. So, Flatiron-Manson team in essence will receive a total incentive of $25 million for completing the project ahead of schedule.

But this is a small incentive when we consider the cost of closure and the resulting detour. It is estimated that Minnesotans pay more than $400,000 a day due to unavailability of the river crossing.

Photo above is a courtesy of Mn/DOT (http://projects.dot.state.mn.us/35wbridge/constructionPhotos.html)