US construction costs rose 5.7% in 2018
May 7, 2019 by Kim Slowey - Construction Dive
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Construction costs in the U.S. rose 5.7% in 2018, according to Rider Levett Bucknall...
Of the 12 U.S. metros in RLB’s report, those experiencing the biggest cost increases were Chicago (7.6%); Portland, Oregon (7.1%); San Francisco (6.7%); Phoenix (6.7%); Washington, D.C. (6.5%); and Seattle (6.4%).
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What about Denver?
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Las Vegas (5.4%); Honolulu (4.8%); New York (4.5%); Boston (4.4%); Los Angeles (4.4%); and Denver (4%) each had cost increases lower than the national average.
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What about infrastructure?
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For infrastructure projects, which typically take longer to plan and budget ... the larger price tags sometime translate to delays or even cancellations.
The Maine DOT has slashed tens of millions of dollars' worth of projects from its 2019 infrastructure plan ... because contractors have been submitting bids much higher than the DOT estimated. The agency even added 10% to its own projections to make up for cost increases, but that add-on turned out to be too low.
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Maine by itself is a small sample size but it's never-the-less indicative of national infrastructure cost trends.
Opinion One
The Republican anti-tax crowd including AFP (Americans for Prosperity) have cost themselves a boatload of money. If CDOT had been more timely funded current projects (like Central 70) could have been done for much less. My guess is the I-25/I-70 projects will cost a
minimum 35% more than if not for all the delay.
As for the Streetsblog crowd which obsesses over ideology and never mind what the costs might be, they could be the biggest losers.
Opinion Two
At least CDOT is now moving forward on long-needed projects. A few more years and it would cost another 35% more.
I'm waiting to see how Elevate Denver Bond projects play out. Hopefully the contingency $'s included prove to be sufficient. They did quickly contract for major pieces so that's a plus.
With respect to RTD, fortunately even the N Line is now in wrap-up mode so that all major projects are virtually banked. As well-funded as RTD is compared to many, many transit agencies, even they are constrained by rising operating costs.