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Construction Cost Impacts Florida DOT Experience

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

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Construction Cost Impacts Florida DOT Experience

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  1. Construction Cost ImpactsFlorida DOT Experience 20th Annual TEA Conference – 2007 St. Louis, Missouri October 5, 2007 Greg Davis State Estimates Engineer Florida Department of Transportation

  2. OVERVIEW • Material Prices • Work Program (STIP) • Bidder Competition • Lake Belt Mining Issue • FDOT Strategies

  3. MATERIAL PRICES

  4. Earthwork Average per Cubic Yard Fiscal Year – Statewide (thru August 2007) NOTE: Lump Sum, Design/Build Contracts not included in this graph

  5. Asphalt (Structural/Friction Course Items only) Average per Ton Fiscal Year – Statewide (thru August 2007) NOTE: Lump Sum, Design/Build Contracts not included in this graph

  6. Structural Concrete Average per Cubic Yard Fiscal Year – Statewide (thru August 2007) NOTE: Lump Sum, Design/Build Contracts not included in this graph

  7. Structural Steel Average per pound Fiscal Year – Statewide (thru August 2007) NOTE: Lump Sum, Design/Build Contracts not included in this graph

  8. Reinforcing Steel Average per pound Fiscal Year – Statewide (thru August 2007) NOTE: Lump Sum, Design/Build Contracts not included in this graph

  9. SummaryStatewide Weighted Average Prices (Fiscal Year)

  10. WORK PROGRAM (STIP)

  11. (Projects rejected and deferred to 05/06 have been removed)

  12. IMPACTS TO FLORIDA’S PROGRAM • 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.

  13. IMPACTS TO FLORIDA’S PROGRAM • 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 todate

  14. BID COMPETITION

  15. LAKE BELT MINING ISSUE

  16. LAKE BELT MINING ISSUE • 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

  17. LAKE BELT MINING ISSUE • 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

  18. FDOT STRATEGIES

  19. FDOT STRATEGIES • Alternative Contracting Methods • Bid Alternates • Bid Options • Scope Alternates

  20. FDOT STRATEGIES • Bid Maximum Specification Bid Maximum Report • Producer Price Index

  21. FDOT STRATEGIES • 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”

  22. FDOT STRATEGIES • 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

  23. CONTACT INFORMATION Greg Davis, P.E. State Estimates Engineer greg.davis@dot.state.fl.us (850) 414-4170

  24. Thank You and Any Questions!

  25. How ‘bout them Gators!

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