Despite a pandemic, a labor shortage and suffocated supply chains, entrepreneurs continue to work on projects costing billions of dollars, with constructions ranging from office towers to arenas .
As megaprojects continue, tensions related to COVID-19 on the construction industry are evident. Before the pandemic, 14 projects worth over $ 1 billion kicked off in the first eight months of 2019 and were worth a combined $ 24.3 billion, Kim Kennedy, director of operations, told Construction Dive in an email. forecast for Dodge Data & Analytics. However, in the first eight months of 2021, only eight projects over $ 1 billion were launched with a combined value of $ 10.8 billion.
“The impact has been real and I would expect it to continue until the economy is completely back to normal, including full employment, which could take another year or two.” Kennedy said.
However, there are caveats to the list. Kennedy said the prices matched the tough construction costs, not necessarily the total project budget. This means that the price of the land, architectural / engineering fees and other costs have not been factored into the price.
Below is Dodge’s list of the seven U.S. projects that have led the way this year that eclipse $ 1 billion.
1. Line 3 replacement program
$ 2.1 billion
The Enbridge Oil Company Line 3 replacement program involves the new construction of 36-inch diameter oil piping to replace 282 miles of existing 34-inch piping. The pipeline will extend from the North Dakota-Minnesota border in Kittson County, Minnesota, and terminate at an existing Enbridge terminal in Superior, Wisconsin.
The new construction will include 330 miles of new piping and cost $ 2.1 billion, according to Dodge Data & Analytics. Construction began last February. Once the new piping has been installed, the old line 3 will be abandoned.
2. 270, avenue du Parc
New York City
$ 1.5 billion
JPMorgan Chase ‘The new office tower is shaping up to be a monster both in terms of size and cost. Rising to 1,425 feet, it will be the second tallest building in Manhattan, surpassed only by One World Trade Center, according to Reuters.
It will cover 2.5 million square feet and will be located between Park and Madison avenues, replacing the now demolished Union Carbide building, according to New York Yimby. Dodge Data & Analytics values the project at $ 1.5 billion.
3. Expansion of the Diamond Green Diesel Port Authority refinery
Port Arthur, Texas
$ 1.45 billion
The Port Authority Diamond Green Diesel Refinery Expansion is a joint venture between Valero Energy Corporation and Darling Ingredients Inc. DGD Port Arthur’s total annual production capacity is estimated at 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha, and the new plant is expected to start operations in the second half of 2023, according to a press release.
The total price is estimated at $ 1.45 billion, according to Dodge Data & Analytics, and the cost of construction will be shared by both parties.
4.Ohio State University Wexler Inpatient Hospital Tour
$ 1.2 billion
The tower of the Wexler Inpatient Hospital at Ohio State University was inaugurated in February. It’s the one from the university the largest facilities project ever, with a projected price tag of $ 1.2 billion, according to Dodge Data & Analytics. The hospital will be 1.9 million square feet and will have 820 beds in private rooms. The project is expected to complete construction in 2026 and open early this year, according to a Ohio State Press Release.
5. Red River Valley Water Supply Project
Washburn, North Dakota
$ 1.18 billion
The Red River Valley Water Supply Project is a fail-safe system that, in the event of an emergency, will provide water to residents of central and eastern North Dakota. With a price tag of $ 1.18 billion from Dodge Data & Analytics, the project involves 167 miles of 72-inch piping, according to KFYR-TV, about a mile south of Carrington on the west side of US Highway 52/281 and the Red River Valley & Western Railroad, according to the project site.
During peak hours, the pipeline will be able to move 165 cubic feet of water per second, which is more than 1,000 gallons of water flowing to any point in the system at any given time. Construction is expected to be completed by the end of October.
6. Sanborn 1.1 GW solar installation and battery storage
$ 1.15 billion
Sanborn’s solar plant and battery storage in Mojave, California will be a huge facility housing both solar panels and batteries to store the energy they generate. It will cost around $ 1.15 billion in total, according to Dodge Data & Analytics.
The facility will have a 1,118 MW solar complex with an energy storage capacity of 2,165 MWh, according to a SolarPowerWorld article online. Construction began earlier this year and is expected to be completed by the end of 2022.
7. Inglewood basketball / entertainment arena
$ 1 billion
The new Clippers arena completes our projected billion dollar list according to Dodge Data & Analytics. He would be tied for 20th place ranking of the most expensive sports sites in the world and will have a capacity of 18,500 places, according to DailyBreeze. It will be located directly across from SoFi Stadium, home to the Los Angeles Rams and the NFL Los Angeles Chargers.
The company is built by AECOM with a target opening in 2024, according to AECOM website. The Associated Press reported on September 17 that the arena will be named “Intuit Stadium”.