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NEW YORK CITY-The Port Authority of New York and New Jersey says a new trend of dropping construction costs led to its decision to discontinue a Phoenix Constructors contract that originally had the consortium building the $3.2-billion World Trade Center Transportation hub in its entirety. Phoenix, a joint venture between Fluor Enterprises, Skansa USA, Bovis Lend Lease and Granite Construction, served as project manager and middleman between Port Authority and the contractors doing the work.

In a statement, the Port Authority says the changes will allow the agency to competitively bid future work on the World Trade Center Transportation Hub. Phoenix Constructors will continue to work on and complete its existing work awarded to date.

“It’s strictly a different way of doing business to get the project built,” a Port Authority spokesperson tells GlobeSt.com. “Phoenix will complete the underpinning for the number one tower, the below-grade steel, the east-west connector–all of that, they’ll complete.” Further, members of the Phoenix JV will be able to bid on all future work in connection to the Transportation hub, the statement says.

A spokesperson for primary contractor and project manager Fluor tells GlobeSt.com his company would have to evaluate any upcoming bids on at the World Trade Center site on a “case by case” basis. At Skanska, a spokeswoman tells GlobeStcom. that “as other work comes out, we may or may not bid on it. We have to see if it fits our scope of work and skill set.” She adds the Port Authority is a repeat client of Skanska and “we have a good relationship with them that we certainly hope to continue.”

At Bovis, a spokesperson referred questions back to Fluor but says as things stand, she has “no idea” whether Bovis would rebid for work on the project. Although Granite Construction–the fourth firm making up Phoenix–referred questions to Fluor, a company release detailing the Port Authority decision reported that Granite Construction, which shared 20% of the Phoenix contract, recorded around $136 million in revenue thus far from the Transportation Hub project. The release added Granite anticipates another $81 million once it completes the work Granite is scheduled to finish.

The World Trade Center PATH station originally opened as the Hudson Terminal in 1909 but after that facility was torn down to make way for the Twin Towers, a PATH station was incorporated into the World Trade Center. In November 2003, two years after 9/11, a temporary station was built at the site.

Plans were unveiled in 2004 for an architecturally bold and extensive new WTC Transportation Hub, designed by Santiago Calatrava. A first for Downtown, the ambitious railroad hub is designed to connect the NJ PATH trains to the New York City subways, and there are studies being conducted that might someday lead to Downtown connections with the Long Island Rail Road.

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