Case Study: I-70 Mountain Corridor Reconstruction – Design-Build Delivery and Environmental Risk Mismanagement (2014)

Project Overview
• Name: I-70 Mountain Corridor Reconstruction
• Location: Colorado
• Year: 2014
• Project Size: $400 million
• Scope: Reconstruction and widening of highway section in environmentally sensitive mountain terrain using Design-Build
• Lead Agencies/Contractors: Colorado Department of Transportation (CDOT), Design-Build Contractor

Category of the Issue, Problem, or Challenge
• Project Delivery Method
• Design-Build

Summary of the Issue, Problem, or Challenge
During construction, environmental permitting delays and unforeseen environmental mitigation requirements slowed work. The Design-Build contract did not adequately allocate risks or schedule contingencies for environmental uncertainties, causing cost overruns and schedule slips.

Root Cause Analysis

• Insufficient environmental risk assessment during design phase.
• Contract ambiguity regarding responsibility for environmental delays.
• Overly aggressive schedule without adequate contingency for environmental permitting.
• Limited early stakeholder engagement with environmental regulators.

Impacts Due to the Issue, Problem, or Challenge
• Schedule delay of 4 months.
• Cost overruns totaling $12 million.
• Increased friction between contractor, owner, and regulators.

Corrective Actions Taken

1. Revised contract clauses to clarify environmental risk allocation.
2. Enhanced early engagement with regulatory agencies.
3. Added schedule buffers for environmental permit reviews.
4. Implemented joint risk management sessions including environmental stakeholders.

Lessons Learned

• Environmental risks must be thoroughly assessed early and allocated clearly in contracts.
• Early and proactive engagement with regulators reduces surprises.
• Schedules must realistically incorporate environmental permitting timelines.
• Joint risk management improves coordination and transparency.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Are environmental risks fully assessed pre-construction?
• Is contract language clear on environmental delay responsibilities?
• Is schedule realistic for environmental permitting?
• Are regulators engaged early and continuously?