The Yukon government has announced a change in the construction plans for the Nisutlin Bay Bridge project, which impacts travelers on the Alaska Highway corridor through Watson Lake. On May 5, 2026, the Government of Yukon and the project’s lead contractor, Graham Infrastructure LP, reached a mutual agreement to end their current construction contract.
This decision follows an evaluation of the project, which encountered significant challenges, including soil movement issues discovered at the new bridge’s north and south abutments in the summer of 2025. These technical issues required a pause in construction and necessary remediation work before the project can move forward. Additionally, the government previously terminated its contract with the project’s former engineer of record in April 2026, noting that different expertise was required to progress.
While the project has seen substantial cost changes since it was first estimated at approximately $25 million in 2019, territorial officials emphasized that the path forward is focused on long-term project management. The contract value for the work had previously risen to approximately $193.97 million due to an amended Fisheries Act authorization and subsequent change orders.
Despite the changes to the construction team and the shift in project management, residents and visitors using the Alaska Highway can be assured that the existing 70-year-old bridge remains safe and fully operational. The bridge continues to be monitored as the government prepares for the next steps.
According to the Government of Yukon’s Department of Highways and Public Works, a new remediation design is expected to be completed in the coming months. Once that design is finalized, the remaining construction work for the new crossing will be re-tendered.
