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Honolulu rail contractor granted $15.9 million change order

Kevin Dayton
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Courtesy Honolulu Rail Transit Project
A drawing shows the rail maintenance facility the city plans to build on the property in Waipahu.

A major rail contractor won preliminary approval today for a $15.9 million change order to cover higher prices for steel and other materials for the 20-mile rail line.

The change order filed by Kiewit Kobayashi Joint Venture is needed because prices have changed during  the 23 months of delay in starting the project. Kiewit Kobayashi has a $195 million contract to build a maintenance and storage facility near Leeward Community College to service and store rail cars for the project.

As part of that contract, Kiewit Kobayashi is purchasing the steel for the entire 20-mile rail line. With this change order, the city will lock in the price of steel for the entire rail system, according to city officials. 

The change order will not increase the overall cost of the rail system, which is still estimated at about $5.27 billion. The money to cover the higher materials prices will come from a contingency fund of more than $860 million set aside for unexpected costs.

 

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