Quote:
Originally Posted by Socguy
I agree. Certainly it's bigger but I doubt that it would stretch capacity that much, especially considering that it was all one project at one point in time. Besides, by breaking it into two you risk losing the 'economies of scale' which also help hold down cost.
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I think at this size of project you're economy of scale may actually have the reverse effect, where by you use all the available resource creating scarcity where there was none before. Really economies of scale work in mass production items where tooling costs can be distributed over a larger number of units, CTrain cars are a great example of this. There is little fixed capital cost for the contractor outside of equipment, it's unlikely that they would go to the extent of building a new fixed capital asset (concrete plant, asphalt plant, etc.).
Also given that they W leg will likely be in tender during the final phases of the SW leg they incumbent bidder will likely end up with a good lead in the bidding. Also given the scope of the project there is potential that a single bidder may not be able to get the required financing to build both legs at the same time.