The Strategic Value of Collaborative Delivery in U.S. Infrastructure: A Case Study of FlatironDragados and LA Metro Projects

The U.S. infrastructure sector is at a pivotal juncture, where traditional delivery models are increasingly challenged by the need for agility, cost predictability, and stakeholder alignment. Among the most promising innovations is the collaborative delivery model, which redefines risk-sharing and client engagement to deliver complex projects with greater efficiency. A compelling case study emerges from the partnership between FlatironDragados and the Los Angeles County Metropolitan Transportation Authority (LA Metro), which has deployed these principles in two transformative rail projects: the Southeast Gateway Line and the Link Union Station modernization. These initiatives exemplify how risk-balanced frameworks and client-aligned strategies can unlock high-conviction infrastructure investments.

The Collaborative Delivery Framework: A New Paradigm

Collaborative delivery models, such as Construction Manager/General Contractor (CM/GC) and Progressive Design-Build, prioritize early contractor engagement to align design, cost, and risk management. Unlike traditional adversarial models, these approaches foster transparency and shared accountability, reducing the likelihood of cost overruns and schedule delays. For instance, LA Metro’s selection of FlatironDragados for the Southeast Gateway Line and Link Union Station projects leverages preconstruction services to optimize design and mitigate risks before contracts are finalized [1]. This phase includes utility relocations, freight rail line adjustments, and infrastructure planning, ensuring that potential bottlenecks are addressed early [2].

The Southeast Gateway Line, a $8.6 billion project, exemplifies this approach. By relocating 8.7 miles of freight tracks and constructing 52,000 feet of new rail, the project integrates shared-use corridors to maintain operational continuity for rail partners like Union Pacific and the Port of Los Angeles [2]. Such coordination minimizes disruptions and aligns the interests of multiple stakeholders—a critical factor in urban infrastructure where delays are costly.

Risk Mitigation and Client Alignment: A Strategic Edge

FlatironDragados’ strategy emphasizes balanced-risk profiles, where neither the client nor the contractor bears disproportionate burdens. For the Link Union Station project, the firm’s preconstruction work focuses on modernizing a historic transit hub to increase capacity by 200% while preserving operational flexibility [1]. This requires innovative solutions, such as run-through tracks and phased construction, to avoid paralyzing one of Southern California’s busiest stations. By embedding problem-solving into the design phase, the model reduces the need for costly mid-project revisions.

The firm’s broader portfolio, including the I-105 Express Lanes and G-Line Bus Rapid Transit projects, further underscores its commitment to institutional capacity building. These projects, delivered via CM/GC and Progressive Design-Build, prioritize budget and schedule certainty through iterative planning and stakeholder feedback loops [2]. For investors, this translates to predictable returns and reduced exposure to the volatility that often plagues large-scale infrastructure.

Quantifying the Value: A Call for Data-Driven Insights

While the qualitative benefits of collaborative delivery are clear, the sector still lacks robust quantitative benchmarks. Such data would strengthen the case for these frameworks as high-conviction plays. For example, the Southeast Gateway Line’s $231 million in federal grants [2] suggests a focus on leveraging public-private partnerships—a trend that could amplify returns for investors who align with policy priorities like decarbonization and transit expansion.

Strategic Implications for Investors

The FlatironDragados-LA Metro partnership highlights a broader shift in infrastructure investment: the prioritization of relationship-driven models over transactional ones. By aligning incentives and embedding risk management into the design phase, these projects reduce the “unknowns” that deter capital. For investors, this creates opportunities in sectors where regulatory hurdles and public scrutiny traditionally constrained returns.

Moreover, the Twenty-Eight by '28 initiative—LA Metro’s plan to expand transit ahead of the 2028 Olympics—demonstrates how collaborative delivery can scale to meet ambitious timelines [2]. Projects like the Sepulveda Transit Corridor, which will add 6.7 miles of light rail, rely on the same risk-balanced frameworks to ensure on-time delivery [2]. This scalability is critical for investors seeking to capitalize on the $2.5 trillion federal infrastructure bill and similar state-level programs.

Conclusion

The U.S. infrastructure landscape is evolving toward models that prioritize collaboration, transparency, and shared risk. FlatironDragados’ work with LA Metro offers a blueprint for how these principles can be operationalized, delivering projects that are not only technically sound but also aligned with the financial and strategic goals of clients. For investors, the lesson is clear: infrastructure’s next frontier lies in partnerships that turn complexity into competitive advantage.

Source:
[1] LA Metro Selects FlatironDragados to Build Two Key Rail Projects, [https://www.fdcorp.com/en/news/rail/2025/la-metro-selects-flatirondragados-to-build-two-key-rail-projects]
[2] Herzog, FlatironDragados nab $997M LA light rail job, [https://www.constructiondive.com/news/herzog-flatirondragados-la-light-rail/745662/]