A delay in permitting has pushed some of the construction work at State Pier into late 2022, but the Connecticut Port Authority reported on Tuesday that the project remains on its projected $235 million budget.

The port authority’s Board of Commissioners met by teleconference Tuesday, five days after receiving a key federal permit from the U.S. Army Corps of Engineers that authorizes in-water work. Projects like dredging deeper berths, installation of bulkheads and filling in the 7.4 acres of water between the two piers are now allowed to move forward.

The bulk of the dredging, which is a crucial part of the planned upgrades to accommodate ships carrying massive offshore wind turbines, won’t happen until late in 2022. Part of the reason for the delay is that the permit that allows work in the Thames River prohibits any in-water construction work between Feb. 1 and May 31 to protect fish habitats.

Some limited dredging work between the two piers is expected to start in January. Marlin Peterson, a project coordinator with AECOM, said the dredging is a precursor to depositing the material between the two piers.

AECOM serves as the construction administrator for the Connecticut Port Authority.

Design for the modernized State Pier calls for one large Central Wharf area spanning the existing pier and the older Central Vermont Railroad Pier. The work is funded by the state and offshore wind partners Ørsted and Eversource, and State Pier will be used as a staging area for offshore wind projects.

Marlin said the total estimated costs for the construction is $171.7 million, with an additional $32.1 million for the final dredging.

The total remains under the $204 million “Targeted Guaranteed Maximum Price” for the project set by construction manager Kiewitt in April. That figure includes $193 million for construction and $11 million for contingency. There is an additional $31 million for project soft costs that include construction administrator fees, design, permitting, environmental mitigation and a railroad property lease.

Port authority board Chairman David Kooris indicated that work is being done to finalize the timeline for the project. The “substantial completion date” is Jan. 31, 2023. While costs of construction remain on track, Kooris said there may be cost implications of having workers on the project for longer than anticipated.

“We remain diligent and confident in our ability to deliver the project in a timely and cost-effective way,” Kooris said.

Port authority critic Kevin Blacker during Tuesday’s meeting continued to question projected costs of the project, which have risen from initial estimates of $93 million.

Kooris on Tuesday introduced Noel Petra, deputy commissioner of the state Department of Administrative Services, who is taking the lead on state oversight of the project. The port authority has a memorandum of understanding in place with both DAS and the state Office of Policy and Management for management and support services related to construction and procurement activities on the project. Petra replaces Kosta Diamantis, former deputy secretary of OPM, who was removed from his post by the governor’s office and retired in October.

Petra, in a statement, said work is being done to finalize the completion schedule. “We look forward to embarking on the final phases of construction on one of the most significant infrastructure projects underway in New England.”

While obtaining a permit is considered good news, board member Felix Reyes, director of New London's Office of Development and Planning, suggested that the port authority do more to give the public confidence.

New London has been celebrating the project and is reaping some financial benefits from a host community agreement with Ørsted and Eversource. But Reyes said the port authority continues to struggle with public perception.

“With any municipal government or state project, there are always going to be people that are unsure or questioning,” Reyes said. “What are the marketing efforts in regard to educating the public? Getting them excited, giving them some ownership.”

The port authority has updates on the State Pier project available on its website, statepiernewlondon.com.

g.smith@theday.com