construction cost impacts florida dot experience
DESCRIPTION
Construction Cost Impacts Florida DOT Experience. 20 th Annual TEA Conference – 2007 St. Louis, Missouri October 5, 2007. Greg Davis State Estimates Engineer Florida Department of Transportation. OVERVIEW. Material Prices Work Program (STIP) Bidder Competition Lake Belt Mining Issue - PowerPoint PPT PresentationTRANSCRIPT
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Construction Cost Construction Cost ImpactsImpactsFlorida DOT ExperienceFlorida DOT Experience
Greg DavisGreg DavisState Estimates EngineerState Estimates EngineerFlorida Department of TransportationFlorida Department of Transportation
2020thth Annual TEA Conference – 2007 Annual TEA Conference – 2007St. Louis, Missouri St. Louis, Missouri
October 5, 2007October 5, 2007
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OVERVIEW Material Prices Work Program (STIP) Bidder Competition Lake Belt Mining Issue FDOT Strategies
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MATERIAL PRICES
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Earthwork
NOTE: Lump Sum, Design/Build Contracts not included in this graph
Ave
rage
per
Cub
ic Y
ard
Fiscal Year – Statewide (thru August 2007)
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Asphalt
NOTE: Lump Sum, Design/Build Contracts not included in this graph
Ave
rage
per
Ton
Fiscal Year – Statewide (thru August 2007)
(Structural/Friction Course Items only)
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Structural Concrete
NOTE: Lump Sum, Design/Build Contracts not included in this graph
Ave
rage
per
Cub
ic Y
ard
Fiscal Year – Statewide (thru August 2007)
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NOTE: Lump Sum, Design/Build Contracts not included in this graph
Structural SteelA
vera
ge p
er p
ound
Fiscal Year – Statewide (thru August 2007)
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Reinforcing Steel
NOTE: Lump Sum, Design/Build Contracts not included in this graph
Ave
rage
per
pou
nd
Fiscal Year – Statewide (thru August 2007)
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SummaryStatewide Weighted Average Prices (Fiscal Year)
Pay Item Pay Item GroupGroup UnitUnit FY05FY05 FY06FY06 ChangeChange
FY06/FY05FY06/FY05 FY07FY07 ChangeChangeFY07/FY06FY07/FY06 FY08FY08 ChangeChange
FY08/FY07FY08/FY07
Earthwork CY $5.66 $7.93 +40.1% $8.42 +6.2% $5.55 -34.1%
Asphalt TN $68.49 $90.75 +32.5% $104.44 +15.1% $97.04 -7.1%
Structural Concrete CY $653.43 $892.89 +36.6% $913.49 +2.3% $630.02 -31.0%
Structural Steel LB $1.34 $1.68 +25.4% $2.07 +23.2% $2.16 +4.4%
Reinforcing Steel LB $0.86 $0.96 +11.6% $0.99 +3.1% $.90 -9.1%
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WORK PROGRAM (STIP)
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(Projects rejected and deferred to 05/06 have been removed)
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First impact occurred in FY05/06 Rejected 71 contracts because of high
bids These were advertised at $600M and bids
came in at $977M 28 of these were re-let. 43 contracts were rolled into FY 06/07 or
deleted.
IMPACTS TO FLORIDA’S PROGRAM
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FY06/07 Impact Rejected 11 contracts because of high bids
These were advertised at $23.1M and bids came in at $37.3M
2 of these were re-let. 9 projects were deferred to 07/08 or
deleted. FY07/08 – 1 rejected contracts to date
IMPACTS TO FLORIDA’S PROGRAM
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BID COMPETITION
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LAKE BELT MINING ISSUE
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Large mining area in South Florida Home to four of Florida’s largest mines Supplies 1/4 of State’s Limestone Supplies 1/2 of Aggregate for Asphalt
Ruling in late July 2007 Immediately stopped 1/3 of all mining Ruling is being appealed
LAKE BELT MINING ISSUE
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Ruling Affect on Material Cost Concrete suppliers are not immediately
affected Limerock up $5/ton - Aug 1st Asphalt Aggregate up $5-$10/ton – Aug 1st
Initially, cost increases are expected in southern half of the state only.
Statewide impact expected in Jan 2008
LAKE BELT MINING ISSUE
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FDOT STRATEGIES
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Alternative Contracting Methods Bid Alternates Bid Options Scope Alternates
FDOT STRATEGIES
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Bid Maximum Specification
Bid Maximum Report
Producer Price Index
FDOT STRATEGIES
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Not require everything to Federal-aid Standards Only 25% of Florida’s Construction
Program is funded by federal-aid dollars Flexible Design and Engineering
We need to “Design what can be built easily” rather than “Build what can be designed easily”
FDOT STRATEGIES
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Increase Competition Even during this volatility, contracts with 3 or
more bids came in closer to our estimate Waive bonds on smaller contracts to develop
next generation of Primes Simplify contract administration (inspection and
testing) on smaller contracts “Remove restrictions that do not add value”
initiative. Procure and permit sites for temporary asphalt
plants for contractors to use
FDOT STRATEGIES
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Thank You and Any Questions!
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How ‘bout them Gators!
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