Skanska US pulls out of PPP infrastructure market after $100m hit

Swedish contractor Skanska has announced that its US arm would no longer bid for high-value public-private partnership contracts following a $100m write-down on two major schemes.

Anders Danielsson, Skanska’s group chief executive, told analysts that the loss was due to cost overruns related to low productivity and delays reports the Construction Dive news site.

He did not name the projects in question.

Construction Dive notes that two large PPPs Skanska is delivering – the $4bn LaGuardia Central Terminal B project in New York (pictured) and a $2bn expansion of Interstate 4 in Orlando, Florida – have hit delays.

Danielsson added that Richard Cavallaro, the head of Skanska’s civil engineering business in the US, would "step down" and be replaced by Don Fosco, the chief operating officer for the unit’s western region, who has been with the company for the past 16 years. The company said Fosco would be taking up his new post "immediately".

Skanska said it was aiming to sell off its power station construction business, but otherwise remained committed to the US infrastructure market.

The company told Engineering News-Record: "Skanska remains fully committed to our civil construction and infrastructure business in the US. Skanska USA will continue to pursue alternative delivery infrastructure projects, including design-and-build projects."

Skanska will release its full and final third-quarter results on 8 November.

Image: Work under way on LaGuardia Terminal B project (LGA)  

Further reading:

Story for GCR? Get in touch via email: [email protected]

Latest articles in Companies