Agreements & Cost Estimates Matthew L. Harding District Utility Engineer, INDOT 20 May 2015.
1 Cost Escalation Mitigation Florida DOT Approach Greg Davis State Estimates Engineer State...
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![Page 1: 1 Cost Escalation Mitigation Florida DOT Approach Greg Davis State Estimates Engineer State Estimates Engineer October 20, 2006.](https://reader035.fdocuments.us/reader035/viewer/2022081421/56649dc85503460f94abd19b/html5/thumbnails/1.jpg)
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Cost Escalation MitigationCost Escalation MitigationFlorida DOT ApproachFlorida DOT Approach
Greg DavisGreg Davis State Estimates EngineerState Estimates Engineer
October 20, 2006October 20, 2006
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Reasons for Cost Escalation
• Material Prices• Bidder Competition• Saturated Construction Market• Labor Shortages• Hurricanes
![Page 3: 1 Cost Escalation Mitigation Florida DOT Approach Greg Davis State Estimates Engineer State Estimates Engineer October 20, 2006.](https://reader035.fdocuments.us/reader035/viewer/2022081421/56649dc85503460f94abd19b/html5/thumbnails/3.jpg)
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Earthwork - Statewide
$4.96 $4.38
-11.7%
$7.27
+66.0%
$8.64
+18.8%
NOTE: Lump Sum, Design/Build Contracts not included in this graph
![Page 4: 1 Cost Escalation Mitigation Florida DOT Approach Greg Davis State Estimates Engineer State Estimates Engineer October 20, 2006.](https://reader035.fdocuments.us/reader035/viewer/2022081421/56649dc85503460f94abd19b/html5/thumbnails/4.jpg)
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Earthwork
• Borrow Pit Availability
• Hauling Cost
• Real Estate Pressures
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Asphalt – Statewide
$53.93 $61.63
+14.3%$77.57
+25.9%
$99.54
+28.3%
NOTE: Lump Sum, Design/Build Contracts not included in this graph
![Page 6: 1 Cost Escalation Mitigation Florida DOT Approach Greg Davis State Estimates Engineer State Estimates Engineer October 20, 2006.](https://reader035.fdocuments.us/reader035/viewer/2022081421/56649dc85503460f94abd19b/html5/thumbnails/6.jpg)
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Asphalt
• Oil prices
• Bitumen Prices
• Aggregates
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Structural Concrete – Statewide
$549.82 $564.12
+2.6%
$760.89
+34.9%
$868.90
+14.2%
NOTE: Lump Sum, Design/Build Contracts not included in this graph
![Page 8: 1 Cost Escalation Mitigation Florida DOT Approach Greg Davis State Estimates Engineer State Estimates Engineer October 20, 2006.](https://reader035.fdocuments.us/reader035/viewer/2022081421/56649dc85503460f94abd19b/html5/thumbnails/8.jpg)
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Structural Concrete
• Global Demand
• Aggregates
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Structural Steel – Statewide
$1.06 $1.48
+39.6%
$1.57
+6.1%$1.72
+9.5%
NOTE: Lump Sum, Design/Build Contracts not included in this graph
![Page 10: 1 Cost Escalation Mitigation Florida DOT Approach Greg Davis State Estimates Engineer State Estimates Engineer October 20, 2006.](https://reader035.fdocuments.us/reader035/viewer/2022081421/56649dc85503460f94abd19b/html5/thumbnails/10.jpg)
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Structural Steel
• Global Demand for Steel
• Fabrication Backlog
• Transportation Cost
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Reinforcing Steel - Statewide
$0.52 $0.75
+44.2%
$0.91
+21.3%
$0.96
+5.5%
NOTE: Lump Sum, Design/Build Contracts not included in this graph
![Page 12: 1 Cost Escalation Mitigation Florida DOT Approach Greg Davis State Estimates Engineer State Estimates Engineer October 20, 2006.](https://reader035.fdocuments.us/reader035/viewer/2022081421/56649dc85503460f94abd19b/html5/thumbnails/12.jpg)
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Reinforcing Steel
• Global Demand for Steel
• Production Backlog
• Transportation Costs
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SummaryStatewide Weighted Average Prices
Pay Item Pay Item GroupGroup
UnitUnit 20032003 20042004 ChangeChange 20052005 ChangeChange 20062006(Jan-Sept)(Jan-Sept)
ChangeChange
Earthwork CY $4.96 $4.38 -11.7% $7.27 +66.0% $8.64 +18.8%
Asphalt TN $53.93 $61.63 +14.3% $77.57 +25.9% $99.54 +28.3%
Structural Concrete
CY $549.82 $564.12 +2.6% $760.89 +34.9% $868.90 +14.2%
Structural Steel
LB $1.06 $1.48 +39.6% $1.57 +6.1% $1.72 +9.5%
Reinforcing Steel
LB $0.52 $0.75 +44.2% $0.91 +21.3% $0.96 +5.5%
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FDOT STRATEGIES
•Deferred Projects– $1.0 Billion in projects (over 3-
years)
•Refine Awards Criteria– Normal Criteria– Additional Criteria– Rejected Contracts
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FDOT STRATEGIES
•Revised Inflation Rates
Year Current Past– 1 7.0% 4.5% – 2 4.5% 4.0% – 3 4.0% 3.5% – 4 3.5% 3.3% – 5 3.5% 3.3%
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FDOT STRATEGIES
•Alternative Contracting Methods–Bid Alternates–Bid Options
•Bid Maximum Specification
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FDOT STRATEGIES
• Comprehensive Price Index
• DOT Borrow Pits
• Temporary/Portable Asphalt Plants
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Questions/Comments
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CONTACT INFORMATION
Phillip “Greg” Davis, P.E.State Estimates Engineer
[email protected](850) 414-4170
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