The deal that was ready since March finally closes. On June 1, 2026, a joint venture of Skanska, Traylor Bros., Inc., and Walsh Construction officially signed a $1 billion contract with the Metropolitan Transportation Authority (MTA) to build the 106th Street Station. Skanska’s portion of the deal: $498 million (roughly SEK 4.6 billion).
While the partnership’s selection was publicly announced in December 2024, today’s signing marks a critical turning point—the shift from preferred bidder status to a legally binding, fully authorized contract recorded in Skanska’s Q2 2026 backlog. The three-month delay between the MTA’s intention to award the contract (announced in March 2026) and today’s official signing reveals federal funding challenges that prevented earlier execution.
The Path to Signing
December 2024: The MTA pre-qualified the joint venture to bid on Second Avenue Subway Phase II packages.
March 2026: The MTA identified the team as the preferred contractor for the 106th Street Station structural package. However, the formal contract announcement couldn’t proceed due to frozen federal funding.
June 1, 2026: Federal funding obstacles cleared, and the MTA executed the formal contract. The deal is now official, legally binding, and added to the backlog.
106th Street Station: Project Overview
The 106th Street Station is located between 105th and 110th Streets on Manhattan’s Second Avenue. The station will serve as a critical midpoint in the Second Avenue Subway’s Phase II expansion, which extends from 96th Street to 125th Street through East Harlem.
What the Contract Includes:
The joint venture will design and construct:
- Structural station shell for the 106th Street Station
- Tunnel tie-ins connecting new construction to existing 1970s-era tunnels
- Support of excavation and earthwork using a “cut-and-cover” construction method
- Roadway decking to maintain vehicle traffic along Second Avenue during underground work
- Two station entrances (at-grade and below-grade)
- Utility support and reconstruction work coordinating with parallel utility relocation efforts
Construction Timeline for 106th Street Station
Mid-2026 (Immediate): Heavy civil mobilization begins. Crews will deploy road decking above the work zone to maintain traffic flow while excavation proceeds below street level.
2026–2028: Cut-and-cover construction phase. Workers will excavate the street in sections, assemble the reinforced concrete structural shell, and restore the roadway.
Q3 2030: Expected completion of the structural station box, all underground tie-ins, and utility reconstruction. At this point, the station shell will be ready for the next construction phase.
September 2032: Target opening date. The Q train will extend service northward from 96th Street, opening the 106th Street Station (along with two other new stations) to the public.
Phase I Success and Phase II Expansion
The Second Avenue Subway Phase I, completed in 2017, extended the Q train from 63rd Street to 96th Street and remains in active operation. Phase II continues the northward expansion from 96th Street to 125th Street, fulfilling a decades-long transit expansion plan for East Harlem.
The 106th Street Station contract is one of four major construction packages that make up the $6.99 billion Phase II expansion. To prevent the delays and cost overruns that affected Phase I, the MTA structured Phase II as four distinct master contracts with clear scope boundaries and accountability.
What This Signing Means
The June 2026 contract signing transitions the 106th Street Station package from planning and negotiation into active execution. Crews will now begin the complex work of constructing a major underground station beneath one of Manhattan’s busiest avenues—coordinating with existing utilities, maintaining street-level traffic, and integrating with parallel utility relocation work.
The 106th Street Station is designed to open in September 2032, completing the initial phase of the Second Avenue Subway’s northward expansion and adding critical transit capacity to East Harlem.
This 106th Street Station project is part of New York’s broader transit modernization. Other major NYC infrastructure projects include the ongoing Penn Station renovation, which is modernizing the nation’s busiest rail hub
106th Street Station Contract – Second Avenue Subway Phase II: Factsheet – June 2026
The Deal
- Contract Value: $1 billion (total JV)
- Contractors: Skanska, Traylor Bros., Inc., Walsh Construction (joint venture)
- Skanska’s share: $498 million
- Client: Metropolitan Transportation Authority (MTA)
- Signed: June 1, 2026
- Booking: Q2 2026 backlog
Why Now
- JV pre-qualified: December 2024
- MTA intended award announced: March 2026
- Formal signing delayed by: Federal funding constraints
- Delay resolved: June 1, 2026
- Status change: Preferred bidder → Legally binding contract
Project Scope
- Location: Between 105th Street and 110th Streets, Manhattan
- Main deliverable: Structural shell for 106th Street Station
- Tunnel tie-ins to existing 1970s-era tunnels
- Roadway decking to maintain traffic during construction
- Two station entrances (at-grade and below-grade)
- Utility support and reconstruction work
- Construction method: Cut-and-cover excavation
Timeline
- Start: Mid-2026 (immediate mobilization)
- Heavy civil work: Mid-2026 onwards
- Cut-and-cover construction: 2026–2028
- Structural completion: Q3 2030
- Station opening: September 2032
Context
- Phase II scope: 96th Street to 125th Street (East Harlem)
- Phase I status: Operational since 2017 (63rd to 96th Street)
- Total Phase II budget: $6.99 billion (4 master contracts)
- 106th Street Station: Midpoint station in Phase II expansion
Key Milestones Ahead
- Mid-2026: Road decking deployment and excavation begins
- 2026–2028: Cut-and-cover construction phase
- Q3 2030: Structural station box completed
- September 2032: Q train service extends to 106th Street Station
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