Case Study: North Carolina I-77 Express Lanes – P3 Delivery and Construction Phase Coordination Issues (2016)
Project Overview
• Name: I-77 Express Lanes Project
• Location: Charlotte, North Carolina
• Year: 2016
• Project Size: $650 million
• Scope: Construction of express toll lanes on I-77 under a Public-Private Partnership (P3)
• Lead Agencies/Contractors: North Carolina Department of Transportation (NCDOT), Private Consortium
Category of the Issue, Problem, or Challenge
• Project Delivery Method
• Public-Private Partnership (P3)
Summary of the Issue, Problem, or Challenge
The construction phase suffered delays and cost increases due to coordination failures between the private operator and public agency on design changes, permitting, and quality standards. The P3 governance structure lacked clarity on construction oversight responsibilities.
Root Cause Analysis
- Ambiguous governance and oversight roles between public and private partners.
- Inconsistent application of quality control standards.
- Delays in design approval impacting construction sequencing.
- Ineffective dispute resolution mechanisms.
Impacts Due to the Issue, Problem, or Challenge
• Schedule delays of 6 months.
• Cost overruns of approximately $20 million.
• Stakeholder tensions and public criticism.
Corrective Actions Taken
- Clarified governance roles and responsibilities for construction oversight.
- Standardized and enforced quality control protocols.
- Accelerated design review and approval processes.
- Instituted formal dispute resolution procedures.
Lessons Learned
- Clear governance and oversight frameworks are essential in P3 construction.
- Consistent quality control application prevents rework.
- Timely design approvals enable smoother construction progress.
- Robust dispute resolution mechanisms reduce delays.
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Are governance roles clearly defined and understood?
- Are quality control standards standardized and enforced?
- Are design approvals timely and well-coordinated?
- Are dispute resolution processes in place and effective?