FHWA REPORTS ROAD CONSTRUCTION COSTS FOR THIRD QUARTER OF 1998 |
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Topics: Federal Highway Administration
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Federal Highway Administration
February 2, 1999
FOR IMMEDIATE RELEASE
Tuesday, February 2, 1999
Contacts: Karen Whitney, (202) 366-0660
Claretta Duren, (202) 366-4636
FHWA 7-99
The Federal Highway Administration (FHWA) today announced that highway construction costs increased 10.1 percent in the third quarter of 1998, and increased 11.9 percent compared to the third quarter of 1997.
The third quarter results raised the FHWA's composite index for highway construction costs to 136.8 percent of the 1987 base index (1987 average costs equal 100 percent).
A large increase in the unit prices for bituminous concrete, portland cement concrete, common excavation, structural concrete, and structural steel raised the index in the third quarter. There was a decrease in the unit price for reinforcing steel.
The three-quarter moving composite price index for the second quarter of 1998 -- obtained by combining data for the first three quarters of 1998Cincreased 1.4 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 |
| 3rd Quarter1 | 1996 1995 |
124.3 |
-- |
119.5 |
-- |
| 4th Quarter 3rd Quarter | 1996 |
119.5 |
-3.9 |
125.6 |
5.1 |
| 1st Quarter Quarter | 1997 |
133.6 |
11.8 |
127.7 |
1.7 |
| 2nd Quarter Quarter | 1997 |
130.4 |
-2.4 |
129.3 |
1.3 |
| 3rd Quarter 2nd Quarter | 1997 |
122.3 |
-6.2 |
129.4 |
0.1 |
| 4th Quarter Quarter | 1997 |
138.2 |
13.0 |
124.7 |
-3.6 |
| 1st Quarter Quarter | 1998 |
119.6 |
-13.5 |
124.1 |
-0.5 |
| 2nd Quarter Quarter | 1998 |
124.2 |
3.8 |
125.8 |
1.4 |
| 3rd Quarter | 1998 |
136.8 |
10.1 |
-- |
-- |
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 3rd quarter of 1998, the previous quarter, and the same quarter a year ago, and the corresponding percentage changes, are shown in the following table:
Price Index 1987 = 100 |
Percentage change this quarter (3rd quarter, 1998) from: |
| Component | 3rd Quarter 1998 |
2nd Quarter 1998 |
3rd Quarter 1997 |
2nd Quarter 1998 |
3rd Quarter 1997 |
| Excavation | 136.6 |
115.8 |
118.9 |
18.0 |
14.9 |
| Portland cement concrete | 160.6 |
149.2 |
163.7 |
7.6 |
-1.9 |
| Bituminous concrete | 132.9 |
112.3 |
106.9 |
18.3 |
24.3 |
Composite surfacing |
142.0 |
124.5 |
125.5 |
14.1 |
13.1 |
| Reinforcing steel | 100.7 |
118.8 |
121.4 |
-15.2 |
-17.1 |
| Structural steel | 130.3 |
119.9 |
119.2 |
8.7 |
9.3 |
| Structural concrete | 142.1 |
132.9 |
120.6 |
6.9 |
17.8 |
Composite structures |
131.9 |
126.9 |
120.4 |
3.9 |
9.6 |
| Composite price index | 136.8 |
124.2 |
122.3 |
10.1 |
11.9 |
The price levels of the current component items of the three-quarter moving index in the 2nd quarter of 1998, 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 1987 = 100 |
Percentage Change This Quarter (2nd Quarter 1998) from: |
| Component | 2nd Quarter 1998 |
1st Quarter 1998 |
2nd Quarter 1997 |
1st Quarter 1998 |
2nd Quarter 1997 |
| Excavation | 127.7 |
114.9 |
120.9 |
11.1 |
5.6 |
| Portland cement concrete | 157.4 |
160.4 |
156.9 |
-1.9 |
0.3 |
| Bituminous concrete | 100.4 |
96.2 |
117.5 |
4.4 |
-14.6 |
Composite surfacing |
119.2 |
117.3 |
130.5 |
1.6 |
-8.7 |
| Reinforcing steel | 120.9 |
129.9 |
129.6 |
-6.9 |
-6.7 |
| Structural steel | 125.4 |
133.2 |
126.6 |
-5.9 |
-0.9 |
| Structural concrete | 137.3 |
134.8 |
133.5 |
1.9 |
2.8 |
Composite structures |
131.4 |
133.5 |
131.0 |
-1.6 |
0.3 |
| Composite price index | 125.8 |
124.1 |
129.3 |
1.4 |
-2.7 |
The U.S. average contract unit prices for the index items during the various periods shown are:
Individual Quarters |
Three-Quarters |
| Component | Unit |
2nd Quarter 1998 |
3rd Quarter 1998 |
1st Quarter 19981 |
2nd Quarter 19982 |
| Excavation | Cubic yard | $2.81 |
3.31 |
$2.79 |
$3.10 |
| Portland cement concrete | Square yard3 | 21.98 |
23.66 |
23.63 |
23.19 |
| Bituminous concrete | Ton | 27.69 |
32.77 |
23.72 |
24.76 |
| Reinforcing steel | Pound | 0.521 |
0.444 |
0.572 |
0.553 |
| Structural steel | Pound | 1.061 |
1.153 |
1.179 |
1.110 |
| Structural concrete | Cubic yard | 319.99 |
342.12 |
324.64 |
330.77 |
1 Weighted average unit prices for the last quarter of 1997 and the first two quarters of 1998.
2 Weighted average unit prices for the first three quarters of 1998.
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.