The city announced yesterday that a joint venture between Kiewit Pacific Co. and Albert C. Kobayashi Inc. has been awarded a $195 million contract to build a train depot for Honolulu’s planned $5.5 billion elevated commuter rail line.
The contract is the second major construction-related contract awarded so far and the second deal to involve Kiewit. Last October, Kiewit was awarded a $483 million contract to design and build the first phase of the train’s guideway from East Kapolei to Leeward Community College.
The train car maintenance and storage facility will be built on a 43-acre parcel off Farrington Highway between Waipahu High School and Leeward Community College.
Mayor Mufi Hannemann said the contract price of $195 million was $60 million less than budgeted.
"I am being fiscally prudent and taking advantage of the favorable bidding climate to reduce our construction costs," Hannemann said in a news release. "I am hopeful this trend will continue and we could see additional savings this year."
Under terms of the 40-month deal, the Kiewit/Kobayashi joint venture will design and build the maintenance facility and buy the steel rail for the project.
The entire cost of the project was expected to total an inflation-adjusted $255 million, which included $138 million in construction costs, $59 million for engineering and design and $58 million for steel.
The city did not disclose the number of competitors that bid for the train depot job.
The city has so far awarded $678 million in train construction contracts. That is $150 million less than budgeted for those contracts, according to the city.
The city also is in the process of awarding a train vehicle and systems contract and a contract for the second phase of guideway construction, from Leeward Community College to Aloha Stadium. Plans call for the train to eventually connect to Ala Moana Center.
Kiewit has been involved in several high-profile Hawaii projects dating back at least 25 years. These include telescopes on Mauna Kea, the H-3 freeway, the widening of Kalanianaole Highway and the interisland terminal at Honolulu Airport. The company also built a water desalination plant in Kapolei.
Albert C. Kobayashi Inc. is a general contractor that has been in business for nearly 40 years serving government and private customers, according to the firm’s Web site. The company has worked on the Moana Surfrider Hotel, Hilton Hawaiian Village, the Kapolei state office building and the Kuakini Medical Center.