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Transportation commission approves $3.91 million in extra payments after Union Pacific alters demolition requirements
Summary
The Oklahoma Transportation Commission approved an additional $3,912,494.34 to Frontier Bridge Inc. for a US-69 bridge contract in Wagner after Union Pacific Railroad required more costly demolition methods and prolonged approval, pushing the change above the statutory 10% limit and requiring commission approval.
The Oklahoma Transportation Commission on March 2025 approved an additional payment of $3,912,494.34 to Frontier Bridge Inc. related to a US-69 bridge and approach contract in Wagner, Oklahoma, after the Union Pacific Railroad required changes to demolition methods and delayed approval of demolition plans.
The payment supplements a contract the commission originally awarded on Sept. 11, 2023, for $11,790,918.43 with a contract time of 490 calendar days. ODOT staff said the railroad’s new requirements prevented the contractor from “rubbleiz[ing]” the bridge and instead required cutting the structure into sections and removing them with large cranes — a method that necessitated specialized equipment and higher costs. That change increased the contract by $3,387,120.78, and an overrun of previously approved overhead compensation (228 days at a daily rate of $2,304.27) added $525,373.56, for a total $3,912,494.34 increase that exceeded the 10% statutory limit on contract changes and required commission approval.
Sean Davis, who presented the claim to the commission, said the department and contractor discovered the railroad’s revised demands only after submission of the contractor’s demolition plan and that the approval process took substantially longer than anticipated. “We were informed that we would not be able to rubbleize,” Davis said, describing how that change forced use of large cranes and specialized demolition practices.
Commissioners discussed whether the railroads can change requirements without clear timelines; ODOT staff said there are standard practices it can promote but that each railroad review and each job’s crane/placement needs will remain somewhat unique. Director Gatz said ODOT is increasing communication with railroads to reduce similar surprises in future bids.
Because the added compensation exceeded the departmental threshold, the commission’s formal approval was required and recorded as granted. The commission did not provide a roll-call vote tally in the verbal record.
ODOT staff said supporting documentation for the claimed amount was submitted and reviewed by the department before the request. The department also reported it has met with Union Pacific and BNSF to try to establish clearer processes and timelines for demolition-plan reviews so future bids can reflect railroad requirements and avoid large, unanticipated costs.
The approved additional payment applies to the contract awarded to Frontier Bridge Inc. for the US-69 bridge over the Union Pacific right of way near the State Highway 51 junction in Wagner.
