The extra million will be paid to Orlando-based Wharton Smith whose second-ranked bid of $11.3 million was over the city's budgeted $10.3 million figure.

The city selected Wharton Smith after Orlando-based Harbco Construction Inc., the winning bidder at $9.1 million, pulled out of the project after the city refused to approve an unlicensed Mexico-based subcontractor to work with Harbco on the job.

Harbco officials told the city Grupo Mora & SouthCees Group de Mexico was qualified to do the sea wall job and would have been licensed to work in the United States within 45 days. The 16-month construction phase won't begin until the 30-day engineering phase is completed in October, city staffers tell GlobeSt.com.