Interstate 4 builder's claim: 8-month delay and $100 million over budget

The Orlando Sentinel ^ | July 12, 2018 | Kevin Spear

[Tolerance Sucks Rocks]

Interstate 4’s overhaul will run eight months beyond a scheduled finish in early 2021 and $100 million over a $2.3 billion budget, according to a recent claim by the builder.

Neither the builder, I-4 Mobility Partners, nor the state Department of Transportation previously had publicly disclosed a potential change in schedule or budget.

Details first emerged from Moody’s Investors Service, with reports on I-4 Mobility’s financial footing.

The state Department of Transportation issued a statement on Thursday, emphasizing that the I-4 Mobility Partners claim remains undetermined.

“While the claim is being reviewed, construction activities are continuing and the contractor is being held to the terms of the contract with the original completion dates set forth in the agreement,” department spokesman Steve Olson said.

“No time extensions or financial considerations have been granted to the contractor from FDOT,” Olson said.

Moody’s reported on June 28 that it had posted a negative outlook for three loans totaling $1.4 billion taken on by I-4 Mobility Partners.

Called I-4 Ultimate, the massive remake of the 60-year-old freeway began in 2015.

The project will add toll lanes along a 21-mile section of I-4 from north of State Road 434 in Seminole, through Orlando and to west of Florida’s Turnpike in Orange County.

I-4 Ultimate is a “public-private partnership,” in which the builder and the state are co-investors in a road expected to generate revenue through tolls.

While motorists may face an added eight months of construction on I-4, a road now widely detested by many drivers, what the $100 million claim may mean for taxpayers was not immediately clear.

Neither the Florida Department of Transportation nor I-4 Mobility Partners responded to requests for an interview.

I-4 Mobility Partners issued a statement, saying “a project of this size and complexity will nearly always encounter unexpected challenges.”

[Tolerance Sucks Rocks]

PING.

[Windflier]

Bet you any amount of money that they’re mostly running behind schedule and over budget because of change orders and other meddling by the state.

[BobL]

“Bet you any amount of money that they’re mostly running behind schedule and over budget because of change orders and other meddling by the state.”

Sometimes it’s crappy weather too. As it is, they have an EASY SOLUTION: Just raise tolls!

[Windflier]

Sometimes it’s crappy weather too.

I'll bet that's true, but they haven't had $100 million dollars of bad weather.

[Celtic Conservative]

Get the contractors that work on Disneys portion of I-4. Those guys bring it in on time and under budget because they have to or Disney doesn’t pay them.

CC

[CopperTop]

Are there any instances of a state or federal highway project coming in on time or at least near the budget initially set?

[NonValueAdded]

A 4% overrun on a 7 year project? That's far from being outrageous. A massively busy highway kept open during construction.

On one hand, it should have been built into the bid and the partners should eat it.

OTOH, you want it on time? Fine, more land closures, more gridlock.