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Private Sector Helps Trim USD 1.4 Billion from Hudson Tunnel Project in Eastern USA

Infra News - Published on Thu, 29 Aug 2019

Image Source: The Construction Index
The Construction Index reported that pre-tender input from the private sector has helped trim some USD 1.4 billion from the estimated cost of a planned tunnel construction and rehabilitation project in the eastern USA. Construction of a new rail tunnel beneath the Hudson River is now set to cost USD 9.5 billion and the rehabilitation of the existing 108 year old tunnel has a new estimated cost of USD 1.8 billion. The revised figures are included in an updated financial plan submitted to the Federal Transit Administration. The reduced cost results from work conducted at the request of the governors of New York and New Jersey to position the project to advance quickly once the federal permits are issued.

Feedback received from the private sector during an extensive ‘request for information’ process led to the launch of a Pre-Procurement Virtual Data Room to allow all responding parties to, among other things, better understand the geotechnical characteristics of the Hudson River and New Jersey Palisades, reduce unknowns and reduce risk.

The project is now at a more advanced level of design and has been subject to an intensive value-for-money analysis. The risks and associated mitigations have been analysed and a more efficient contracting plan has been developed that has resulting in fewer contract packages. Potential delivery methods have been examined, including design-build. The new Hudson River Tunnel's level of design is now at the 30% threshold.

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Posted By : Sanju Moirangthem on Thu, 29 Aug 2019
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