Metro Gold Line Foothill Extension Construction Authority CEO Habib F. Balian announced Wednesday that the $878 million Pomona to Montclair project has been delayed due to a contract impasse with Omaha, Nebraska-based construction and engineering firm Kiewit.

“I want to update you that last week Kiewit delivered their best and final offer to design and build the Pomona to Montclair project,” Balian wrote in a news release. “Despite numerous efforts by the Construction Authority to collaborate, including making dozens of contract changes requested by Kiewit to reduce costs, their final bid remained hundreds of millions of dollars above even our most conservative independent cost estimate. As a result, it’s both impossible and inappropriate to move forward with their bid.”

On Wednesday, the Construction Authority’s board of directors directed its staff to cancel the ongoing design-build procurement and pursue a new plan to deliver the project using the Construction Manager at Risk delivery method.

“The board directed staff to come back in April with more details on the new plan, including a timeline for expediting project delivery starting with issuing a Request for Proposals for design services this June. The board believes this is the best approach to put available dollars to their best use and prioritize efficient construction.”

Balian closed his news release with the valediction, “The Journey Continues.”