The award, announced June 1, is the third of four major contracts covering the Phase II extension.

Utility relocation near the future 106th Street station is already underway under Contract 1, while a separate $1.97-billion tunneling package awarded last year covers twin running tunnels between 116th and 125th streets, conversion of a 1970s-era tunnel segment into the future 116th Street station box and excavation of the 125th Street station cavern.

A fourth contract covering station finishes, track, signals, power, communications and other rail systems remains in design.

The phased procurement strategy reflects broader MTA efforts to reduce costs and construction risk. After Phase I drew scrutiny for its cost and complexity, ENR reported that the agency adopted a design-build delivery approach, relocated utilities ahead of major excavation, and reused tunnel segments built in the 1970s.

The contract emerged from a competitive design-build procurement that included proposals from teams led by IPC2 Partners and SAS Constructors. MTA procurement documents identified Mott MacDonald as lead designer for the Skanska-Walsh-Traylor team. 

Beyond the station shell, the team's scope includes structural tie-ins to existing tunnels, excavation support, earthwork, roadway decking to maintain traffic, construction of at- and below-grade station entrance structures, and utility support and reconstruction.

"We're proud to have been selected for the second phase of the Second Avenue Subway, which will significantly improve mobility for New Yorkers by expanding Q line access into East Harlem and Harlem," Michael Viggiano, executive vice president of Skanska USA Civil, said in a statement. "Building on the successful completion of Phase I in 2017, we are honored to continue our involvement in this transformative program."

Chris Hebert, vice president of Traylor Bros., said the award continues the company's work on the Second Avenue Subway following its role in construction of the 86th Street cavern during Phase I.

"Projects like this demand deep underground expertise, strong coordination, and a commitment to working safely in one of the most complex urban construction environments in the country," Hebert said. Continuing its partnership with Skanska, the company is "proud to help build infrastructure that will improve mobility and serve New Yorkers for generations."

Skanska previously participated in the first phase of the Second Avenue Subway through a joint venture with J.F. Shea Construction and Schiavone Construction.

Phase II will extend the Q line approximately 1.8 miles into East Harlem, creating new stations at 106th Street, 116th Street and 125th Street. The 125th Street station will provide connections to the 4, 5 and 6 subway lines as well as Metro-North Railroad service.

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The award follows months of uncertainty surrounding federal participation in the project. In April, ENR reported that U.S. Dept. of Transportation restored funding for Phase II after the MTA sued over suspended reimbursement payments tied to the project's Full Funding Grant Agreement. At the time, MTA Chair and CEO Janno Lieber said the authority would proceed with contract awards and contractor mobilization following the federal government's reversal.

"The billion-dollar contract approved at our March Board meeting is being awarded and contractors are mobilizing right away," Lieber said in April.

Construction under the newly awarded package is expected to reach substantial completion by August 2030 under a 50-month contract term, according to procurement documents and Skanska. The milestone applies to this contract package; the MTA's overall Phase II program remains scheduled to enter passenger service in September 2032.

An MTA spokesperson did not immediately respond to a request for comment.

Once complete, Phase II will extend Second Avenue Subway service into East Harlem, providing a new north-south transit corridor while easing passenger demand on the Lexington Avenue line.