Nebraska Department Of Transportation Examining Next Steps With Contractor On Lincoln South Beltway Project

LINCOLN-(KFOR Mar. 23)- The Nebraska Department of Transportation (NDOT) announced Monday they are negotiating a way forward on the construction of the Lincoln South Beltway following notification from the contractor that they were unable to achieve financial close.

NDOT announced the use of an innovative financing approach in 2019, which aimed to accelerate construction and allow the project to be built over three years, but financed over the original timeframe laid out in the phased construction approach. The South Beltway planning was unique in that the contract signed in December 2019 provided for a partnership between NDOT and Hawkins Construction to extend the payments for work completed beyond the project completion date.

The approach requires NDOT to pay a set amount quarterly and the contractor to obtain financing to cover costs throughout the duration of construction. Due to the instability in the financial markets from COVID-19, Hawkins Construction notified NDOT that they were unable to finalize their financial package within the scheduled timeframe.

The NDOT and Hawkins Construction will continue to work through potential scenarios to minimize impact to the project schedule. Construction is anticipated to continue though the negotiations.

The Lincoln South Beltway is the largest and one of the most complex projects the NDOT has undertaken.  The $352,191,375 contract covers construction of an 11-mile east-west four-lane freeway that will reduce congestion on N-2 through Lincoln and improve regional mobility.  Construction began in February 2020 with NDOT, Benesch and Hawkins Construction hosting a pre-construction meeting on March 11 to layout final project phasing and detour routes to the public.

Lincoln Mayor Leirion Gaylor Baird commented on the scheduling news by saying “The City of Lincoln appreciates NDOT’s and Hawkins Construction’s steadfast commitment to fund the South Beltway  amidst these turbulent times. This transportation project remains vitally important to all partners involved. ”

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