ROAD CONSTRUCTION COSTS UP FOR FOURTH QUARTER OF 1997 |
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Topics: Federal Highway Administration
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Federal Highway Administration
February 19, 1998
FOR IMMEDIATE RELEASE
Thursday, February 19, 1998
Contacts: Karen Whitney, (202)366-0660
Claretta Duren, (202)366-4636
FHWA 9-98
The Federal Highway Administration (FHWA) today announced that highway construction costs increased 13 percent in the fourth quarter of 1997.
The fourth quarter results raised the FHWA's composite index for highway construction costs to 138.2 percent of the 1987 base index (1987 average costs equal 100 percent).
Increases in the unit prices for reinforcing steel, Portland cement concrete, bituminous concrete, structural steel and structural concrete raised the index in the fourth quarter. There was a decrease in the unit price for common excavation.
The three-quarter moving composite price index for the third quarter of 1997 -- obtained by combining data for the first three quarters of 1997 -- increased 0.1 percent from the previous three-quarter average.
Trends in highway construction costs are measured by an index of average contract prices compiled from reports of state highway contract awards for federal-aid contracts greater than $500,000. Since the enactment of the Intermodal Surface Transportation Efficiency Act of 1991, the index reflects federal-aid contracts on the National Highway System.
The composite price indices during the past two years and the percentage changes from the preceding quarter have been as follows:
Quarter |
Year |
Quarterly Price Index |
Percentage Change |
Three-quarter Moving Index1 |
Percentage Change |
| 4th Quarter1 | 1995 |
124.8 |
-- |
122.9 |
-- |
| 1st Quarter | 1996 |
126.4 |
1.3 |
121.8 |
-0.9 |
| 2nd Quarter | 1996 |
118.0 |
-6.6 |
121.3 |
-0.4 |
| 3rd Quarter | 1996 |
124.3 |
5.3 |
119.5 |
-1.5 |
| 4th Quarter | 1996 |
119.5 |
-3.9 |
125.6 |
5.1 |
| 1st Quarter | 1997 |
133.6 |
11.8 |
128.0 |
1.9 |
| 2nd Quarter | 1997 |
132.1 |
-1.1 |
129.3 |
1.0 |
| 3rd Quarter | 1997 |
122.3 |
-7.4 |
129.4 |
0.1 |
| 4th Quarter | 1997 |
138.2 |
13.0 |
-- |
-- |
1 For the three-quarter moving index, these are the middle quarters of the three-quarter periods.
The price levels of the component items of the quarterly index in the 4th quarter of 1997, the previous quarter, and the same quarter a year ago, and the corresponding percentage changes, are shown in the following table:
Price Index |
Percentage change |
|||||
| Component | 4th Quarter 1997 |
3rd Quarter 1997 |
4th Quarter 1996 |
3rd Quarter 1997 |
4th Quarter 1996 |
|
| Excavation | 102.7 |
118.9 |
112.3 |
-13.6 |
-8.5 |
|
| Portland cement concrete | 192.5 |
163.7 |
138.3 |
17.6 |
39.2 |
|
| Bituminous concrete | 126.4 |
106.9 |
121.2 |
18.2 |
4.3 |
|
Composite surfacing |
148.1 |
125.5 |
126.8 |
18.0 |
16.8 |
|
| Reinforcing steel | 124.7 |
121.4 |
113.3 |
2.7 |
10.1 |
|
| Structural steel | 171.9 |
119.2 |
121.5 |
44.2 |
41.5 |
|
| Structural concrete | 131.9 |
120.6 |
112.9 |
9.4 |
16.8 |
|
Composite structures |
141.2 |
120.4 |
115.2 |
17.3 |
22.6 |
|
| Composite price index | 138.2 |
122.3 |
119.5 |
13.0 |
15.6 |
|
The price levels of the current component items of the three-quarter moving index in the 3rd quarter of 1997, the previous quarter, and the same quarter a year ago, and the corresponding percentage changes, are shown in the following table:
Three-Quarter Moving
Price Index| |
Percentage Change This
Quarter |
|||||
| Component | 3rd Quarter 1997 |
2nd Quarter 1997 |
3rd Quarter 1996 |
2nd Quarter 1997 |
3rd Quarter 1996 |
|
| Excavation | 120.4 |
120.9 |
120.6 |
-0.4 |
-0.2 |
|
| Portland cement concrete | 167.4 |
157.2 |
128.1 |
6.5 |
30.7 |
|
| Bituminous concrete | 116.2 |
117.5 |
112.5 |
-1.1 |
3.3 |
|
Composite surfacing |
132.9 |
130.5 |
117.6 |
1.8 |
13.0 |
|
| Reinforcing steel | 126.9 |
129.6 |
123.8 |
-2.1 |
2.5 |
|
| Structural steel | 135.4 |
126.6 |
119.4 |
7.0 |
13.4 |
|
| Structural concrete | 126.9 |
133.5 |
120.5 |
-4.9 |
5.3 |
|
Composite structures |
129.2 |
131.0 |
120.8 |
-1.4 |
7.0 |
|
| Composite price index | 129.4 |
129.3 |
119.5 |
0.1 |
8.3 |
|
The U.S. average contract unit prices for the index items during the various periods shown are:
Individual Quarters |
Three-Quarters |
|||||
| Component | Unit |
3rd Quarter 1997 |
4th Quarter 1997 |
2nd Quarter 19971 |
3rd Quarter 19962 |
|
| Excavation | Cubic yard | $2.88 |
$2.49 |
$3.05 |
$2.92 |
|
| Portland cement concrete | Square yard3 | 24.10 |
28.35 |
19.40 |
24.65 |
|
| Bituminous concrete | Ton | 26.30 |
31.14 |
26.99 |
28.63 |
|
| Reinforcing steel | Pound | 0.54 |
0.549 |
.0548 |
0.559 |
|
| Structural steel | Pound | 1.06 |
1.521 |
1.066 |
1.199 |
|
| Stuctural concrete | Cubic yard | 290.00 |
317.61 |
302.17 |
305.82 |
|
1
Weighted average unit prices for the last quarter of 1996 and the
first two quarters of 1997.
2 Weighted average unit prices for the
first three quarters of 1997.
3 Prices for Portland cement concrete
surfacing reflect adjustments to a standard 9-inch thickness and
do not include costs for reinforcing steel and joints.