MTA awards $1.97 billion tunnel-boring contract for subway expansion

New York Governor Kathy Hochul announced that the Metropolitan Transportation Authority (MTA) Board has approved the tunnel-boring contract for Phase 2 of the Second Avenue Subway, the project extending the Q train from 96 Street to 125 Street that will deliver new transit access to East Harlem residents. This new tunnel will extend from 116 Street to 125 Street. Crews under this contract will also excavate space for the future 125 Street Station, and in a cost-containment measure that saves the MTA $500 million, will outfit the tunnel along the route that was built in the 1970s to accommodate the future 116 Street Station. 

The work to bore the new tunnel, between 35 and 120 feet below Second Avenue, is expected to take place using 750-ton machines equipped with 22-foot diamond-studded drill heads. Early work will commence later this year, with heavy civil construction starting in early 2026 and the tunnel boring itself expected to begin in 2027.

“It's been a century since the people of East Harlem were promised the new subway they deserve — and we are finally getting it done,” said Governor Hochul. “East Harlem is one of the most transit-reliant neighborhoods in New York, but every day, tens of thousands of commuters lack subway access. The Second Avenue Subway will change everything, shortening commutes for over 100,000 daily riders."

The contract, valued at $1.972 billion, is being awarded to Connect Plus Partners, a joint venture between Halmar International and FCC Construction. It is the second of four construction contracts for the Q train extension. Despite New York City’s high construction costs, the Second Avenue Subway Phase 2’s cost-benefit is significant and is projected to have the lowest cost per rider of any active heavy rail project in the country.

"Thanks to investments from Governor Hochul and our partners in Washington, today the new MTA is moving forward with the largest tunneling contract in agency history, but – more important – with a project that pencils at the lowest cost per rider of any heavy rail project in America,” added MTA Chair and CEO Janno Lieber.

“Using lessons learned from Phase 1, we’re excited to keep our momentum going and complete this contract better, faster, and cheaper than ever,” said MTA Construction and Development President Jamie Torres-Springer.

Addressing utility relocation requirements upfront reduces the risk of unexpected costs or delays later as construction progresses — especially in New York City which has one of the most complex underground utilities networks in the world, most of which is unmapped.

Additional cost containment initiatives in Phase 2 include reuse of a tunnel segment that was built in the 1970s from 110 Street to 120 Street along Second Avenue, early real estate acquisition, adoption of best value contract structures such as A+B contracts (design-build), close coordination of contracts and reduction in back-of-house, ancillary space and station size.

All told, these initiatives have saved more than $1.3 billion.

The line’s first construction contract was awarded in January 2024 for utility relocation work. Crews working under that contract are relocating underground utilities from 105 Street to 110 Street on Second Avenue at the site of the future 106 Street Station, in order to facilitate the subsequent construction of the station.

Crews working under the third contract will build the underground space for the future station at 106 Street and Second Avenue. That contract is currently in procurement. The fourth and final contract will cover the fit-out of the three stations, at 106, 116 and 125 Streets, and the systems needed to run train service, such as track, signal, power and communications. This contract is currently in design.

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