Minnesota contractor wins $33.3 million South Veterans Parkway job, $5 million under the state estimate
South Dakota's Transportation Commission on Oct. 29 awarded John Riley Construction of Morris, Minn., a $33.26 million contract for the third stretch of South Veterans Parkway in Sioux Falls, about $5.4 million below the state's $38.67 million estimate.
Riley's low bid came to $33,256,077.79, KELOLAND News reported. Seven contractors bid on the job and five of them came in under the state Department of Transportation's estimate of $38,670,774. The winning number is about $5.41 million, or 14%, below that estimate.
Segment three runs about 2 miles, from Sycamore Avenue to a spot just north of 57th Street, SiouxFalls.Business reported. The work adds connections to 69th Street and realigns Highway 11 so it ties into the parkway and keeps local access. Construction is set to start in 2027 and wrap up in late 2028. Sioux Falls city principal engineer Mike Heiberger said the stretch will look like the earlier sections, with three through lanes and turn lanes at every intersection.
Riley also has the first two segments. The DOT says segment one, from Western Avenue to Cliff Avenue, was finished in November 2024; segment two, from Cliff to Sycamore, is tentatively set to open in late November. The last stretch, from Western Avenue to the Interstate 29 interchange at Tea, is planned to start in 2028 and finish in 2029.
Why it matters: Five of seven bidders landed under the engineer's estimate and the low bid came in 14% below it. Estimators chasing Midwest DOT lettings should expect that level of price pressure, and local subs can watch for Riley's buyout on segment three.
Sources
- Winning bid comes in under estimate for next segment of Veterans ParkwaySiouxFalls.Business, Oct 26
- Next contract awarded for South Veterans ParkwayKELOLAND, Oct 29