Escalating Construction Costs

[mightyace]

I'm sure I'm not the only one who's wondered this.  Doesn't the cost of new highway construction and/or reconstruction seem to cost substantially more than it used to even factoring in inflation?

For example, building I-80 across Pennsylvania in the 1960s cost less than $300 million (<$1 million/mile) IIRC.  (I'll check a book I have at home later)  But, reconstructing five miles of I-76 in Akron in the late 90s cost over $90 million (>$18 million per mile).  I know in this case we're talking urban versus rural here, but IMHO that doesn't account for all of it.

What are the possible causes?

Here's what I've come up with:
1) Higher construction standards.  Some road configurations built in the past are no longer acceptable today and the acceptable standard is more expensive to construct.

2) Higher capacity requirements.  (6 or 8 lanes now, versus 4 earlier.)

3) For reconstruction projects, the need to keep traffic moving which results in more expensive night work and temporary traffic configurations.

4) Higher land acquisition costs from
  a) higher property values from increasing values for equivalent property
  b) higher property values from development/urban sprawl
  c) Items 1 and 2 above may require more land to be acquired.

5) Environmental Impact Studies and Increased Environment Awareness/Remediation During Construction

6) Court costs of fighting NIMBYs and environmental lobbies.

7) Inflation of drawn out construction times due to issues 5 and 6.

OK.  That's my take.  Thoughts, anyone?

[Scott5114]

You're forgetting the biggest driver of costs these days–rising materials costs. Especially in the last few years steel prices have soared. Meanwhile the oil situation we had a few years go had an effect on the cost of asphalt and chipseal, as both are made with oil. Fortunately those have since abated.

One thing that urban freeway planners used to do is intentionally seek out the poorest sections of land in a city and then plot the freeway route by connecting the dots. This way they got the land cheap and got to clear out slums as a bonus. Of course, these types of areas are often home to minorities. Because of this, and also because going after the poor in general in this way, this method is often politically untenable these days. ODOT pretty much followed this approach when selecting the routing for the I-40 realignment in Oklahoma City, and there was an outcry from the Mexican community along that future section of road. ODOT managed to go ahead with the plan anyway, but in more progressive states, the DOT would probably actively shrink from the accusations of racism and go for a more expensive yet less politically risky route.

[Chris]

^^ I believe Robert Moses was also blamed for that between the 1930's and 1950's.

[mapman]

The recent recession has put downward pressure on construction prices here in California.  Some of the public agency clients of the company I work for are reporting bids for new roadway construction (including major projects such as interchanges) coming in at as much as 30% under the agency's projected budget for the work.

[Riverside Frwy]

Just for them to finish the small section of Interstate 710 out here in LA through South Pasadena to Pasadena would cost as much as a Modern aircraft carrier.

Because of the NIMBYs it's never going to get finished and prices are just going to keep rising and rising and with the economy going into the hole, and the high building costs means the age of major freeway building is over.

We still see freeway construction, but it's usually only short freeways (like the new freeway segment of California 180 through Fresno, and the new South Bay Expressway in San Diego)

[mapman]

We still see freeway construction, but it's usually only short freeways (like the new freeway segment of California 180 through Fresno, and the new South Bay Expressway in San Diego)

Or, like the South Bay Expressway, its construction will be financed by the route initially being a toll road.

[Revive 755]

Then there is the greater cost of diesel to run almost all of the construction equipment

[Chris]

1960: completion of 11.6 miles of the extremely urban BQE in New York City. Cost: $ 137 million ¹

2008 dollars: 985 million ²

I doubt if they could construct a six-lane expressway of 11.6 miles for 985 million dollar through another part of Queens/Brooklyn today. Something says me getting the ROW alone cost more than that.