Runway Job Awarded to Tutor Venture, Which Left $50 Million on the Table
After years of planning, Los Angeles World Airports (LAWA) finally settled its differences with its neighbors to limit capacity at Los Angeles International Airport (LAX) and on Nov. 19 awarded a $242 million runway improvement contract to the lowest of two bidders, a Sylmar, Calif.-based Tutor-Saliba Corporation led joint venture with O & G Industries.
When the project was advertised in March, LAWA estimated construction costs at $217 million, but revised the estimate to $253 million in mid-August, just weeks before the only two bids were received. The higher engineers estimate was primarily due to increased material costs for concrete and aggregate and higher fuel costs, according to the LAWA Board report. In addition to Tutor-Salibas offer, Omaha, Neb.-based Kiewit-Pacific submitted a bid for $294 million, about $52 million more.