Case Study: Louisville Ohio River Bridges – Change Order Surge from Environmental Mitigation (2014)

Project Overview
• Name: Louisville–Southern Indiana Ohio River Bridges Project
• Location: Louisville, Kentucky
• Year: 2014
• Project Size: $2.3 billion
• Scope: New bridge construction and highway improvements across two states
• Lead Agencies/Contractors: Kentucky Transportation Cabinet (KYTC), Indiana Department of Transportation (INDOT), Walsh Construction

Category of the Issue, Problem, or Challenge
• Contract Change Order
• Environmental Compliance

Summary of the Issue, Problem, or Challenge
Construction teams encountered unexpected environmental mitigation requirements midway through execution, which were not fully accounted for in the baseline contract. Numerous change orders ensued, covering additional stormwater controls, protected species management, and site access restrictions.

Root Cause Analysis

• Environmental permitting conditions changed post-award.
• Contract lacked contingencies for environmental scope growth.
• Delays in interagency coordination and approvals.
• Poor integration of environmental consultants during early design.

Impacts Due to the Issue, Problem, or Challenge
• Schedule impact of 10 months.
• Change orders totaling $82 million.
• Delays in key milestone delivery.

Corrective Actions Taken

1. Developed flexible environmental compliance addenda in future contracts.
2. Engaged permitting agencies earlier in design process.
3. Required environmental risk assessments in contractor proposals.
4. Standardized mitigation design packages to reduce scope creep.

Lessons Learned

• Environmental permitting risks should be contractually recognized.
• Flexibility in environmental scope allows better risk management.
• Early agency coordination helps avoid mid-construction surprises.
• Integrated environmental expertise improves constructability reviews.

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

• Are all environmental permits obtained pre-bid?
• Are potential permit changes addressed in the contract?
• Is mitigation fully defined and priced during bidding?
• Are environmental consultants involved in constructability planning?