MTA Awards $1.02B Contract for Second Avenue Subway Phase II

NEW YORK, USA – The Metropolitan Transportation Authority (MTA) finalized a US$1.02 billion design-build contract on 19 March 2025 with a consortium of Skanska, Traylor Bros and Walsh Construction to deliver the Second Avenue Subway Phase II extension. The 2.83-kilometre project adds new stations at 106th Street, 116th Street and a terminal at 125th Street-Lexington Avenue, creating a direct interchange with the 4/5/6 lines and Metro-North. Work includes structural tie-ins to existing Phase I tunnels, excavation and earthwork support, temporary roadway decking, and utility relocations.

What Is the Full Scope of This Project?

The Phase II contract covers the design and construction of a twin-tunnel extension of the Q line from 96th Street to 125th Street in East Harlem and Harlem. It delivers three new station caverns—106th Street and 116th Street on Second Avenue, and a major terminal at 125th Street-Lexington Avenue that becomes a transfer node for the Lexington Avenue Subway and Metro-North commuter rail. Ancillary scope includes ground-level and subsurface structures for two station entrances, utility relocation, roadway restoration, and structural connections to the existing Phase I tunnels. When operational in 2030, the extension will reduce overcrowding on the century-old Lexington Avenue Line and provide a one-seat ride from northern Manhattan to Lower Manhattan and Brooklyn.

Key Project Data

How Does This Compare to Similar Projects?

The Phase II contract price averages roughly US$360 million per route-kilometre for the core civil works—though the total programme cost is significantly higher. MTA’s 2020-2024 Capital Program estimated the full Phase II extension at approximately US$6.3 billion, putting the all-in per-kilometre cost at about US$2.2 billion (Source: MTA 2020-2024 Capital Program). By comparison, Phase I of the same line, which opened in 2017, cost US$4.45 billion for 2.9 km, or US$1.5 billion per km (Source: MTA, 2017). Contemporary North American metro expansions also differ sharply: Seattle’s Sound Transit ST3 plan originally forecast at US$54 billion for 100 km now faces a US$34.5 billion funding gap—a projected total of over US$85 billion, exceeding US$850 million per km (Source: Sound Transit, 2025 via Construction Dive). New York’s Phase II per-km cost, while still among the world’s highest, benefits from a less complex underground alignment than Phase I and a design-build delivery model aimed at curbing overruns.

Editor’s Analysis

Award of the US$1.02 billion contract signals that, after decades of stops and starts, MTA is now committed to executing the Second Avenue Subway’s northern leg. However, the wider US$6.3 billion price tag remains subject to inflation and federal funding volatility—a risk that has already tipped Sound Transit’s ST3 into multi-billion-dollar realignment debates. Phase I’s ten-year construction timeline suggests the 2030 operational target is ambitious, even though design-build contracting gives the JV stronger cost-control incentives. For the East Side, capacity relief on the Lexington Avenue Line remains the defining benefit, but the corridor’s long-term value will hinge on MTA’s ability to deliver the full line to Lower Manhattan without the glacial pace and cost escalation that have become synonymous with American subway megaprojects.

FAQ

Q: What will the Second Avenue Subway Phase II extension deliver?
A: It adds 2.83 km of new twin tunnels and three stations—106th Street, 116th Street, and a terminus at 125th Street-Lexington Avenue—creating a direct transfer between the Q line, the 4/5/6 Lexington Avenue Subway, and Metro-North commuter rail.

Q: How much is the Phase II construction contract worth and who is building it?
A: The design-build contract is valued at US$1.02 billion and was awarded to a joint venture of Skanska, Traylor Bros and Walsh Construction. The total Phase II programme budget, including systems and finishes, was previously estimated at US$6.3 billion by the MTA.

Q: When will Phase II open to passengers?
A: MTA’s current schedule targets passenger service in 2030. Comparable transit megaprojects in New York and other U.S. cities have experienced delays, making the timeline a point of industry scrutiny.

Note: The MTA did not release the updated all-in Phase II budget in the contract announcement. The US$6.3 billion figure reflects the agency’s 2020-2024 Capital Program estimate and may have been revised since.