FHWA Reports Road Construction Costs Decreased During First Quarter of 2000 |
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Federal Highway Administration
May 30, 2000
FOR IMMEDIATE RELEASE
Tuesday, May 30, 2000
Contacts:
Karen Whitney, (202) 366-0660
Claretta Duren, (202) 366-4636
FHWA 38-00
The Federal Highway Administration (FHWA) today announced that highway construction costs decreased 4.2 percent in the first quarter of 2000 as compared to the fourth quarter of 1999 and 5.7 percent compared to the first quarter of 1999.
The first quarter results lowered the FHWA's composite index for highway 138.1 percent of the 1987 base index (1987 average costs equal 100 percent).
Decreases in the unit prices for bituminous concrete, structural concrete, structural steel, and Portland cement concrete lowered the index in the first quarter. There were increases in the unit prices for common excavation and reinforcing steel.
The three-quarter moving composite price index for the fourth quarter of 1999 – obtained by combining data for the last two quarters of 1999 with the first quarter of 2000 – decreased 1.1 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 Index* |
Percentage Change |
1st Quarter* |
1998 |
119.6 |
-- |
124.6 |
-- |
| 2nd Quarter |
1998 | 125.6 | 5.0 | 125.8 | 1.0 |
3rd Quarter |
1998 |
136.8 |
8.9 |
130.6 |
3.8 |
4th Quarter |
1998 |
131.4 |
-3.9 |
132.8 |
1.7 |
1st Quarter |
1999 |
130.7 |
-0.5 |
134.4 |
1.2 |
2nd Quarter |
1999 |
143.4 |
9.7 |
134.4 |
0.0 |
3rd Quarter |
1999 |
131.8 |
-8.1 |
138.7 |
3.2 |
4th Quarter |
1999 |
144. |
9.3 |
137.2 |
-1.1 |
1st Quarter |
2000 |
138.1 |
-4.2 |
-- |
-- |
*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 1st quarter of 2000, 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 this quarter |
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Component |
1st Quarter 2000 |
4th Quarter 1999 |
1st Quarter 1999 |
4th Quarter 1999 |
1st Quarter 1999 |
Excavation |
111.8 |
109.3 |
113.5 |
2.3 |
-1.5 |
Portland cement concrete |
170.9 |
190.3 |
149.9 |
-10.2 |
14.0 |
Bituminous concrete |
132.5 |
133.9 |
120.7 |
-1.0 |
9.8 |
Composite surfacing |
145.1 |
152.4 |
130.3 |
-4.8 |
11.4 |
Reinforcing steel |
133.9 |
127.2 |
123.2 |
5.3 |
8.7 |
Structural steel |
121.9 |
147.3 |
139.1 |
-17.2 |
-12.4 |
Structural concrete |
151.3 |
155.2 |
140.2 |
-2.5 |
7.9 |
Composite structures |
140.6 |
148.3 |
136.9 |
-5.2 |
2.7 |
Composite price index |
138.1 |
144.1 |
130.7 |
-4.2 |
5.7 |
The price levels of the current component items of the three-quarter moving index in the 4th quarter of 1999, 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 |
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Component |
4th Quarter 1999 |
3rd Quarter 1999 |
4th Quarter 1998 |
3rd Quarter 1999 |
4th Quarter 1998 |
Excavation |
114.7 |
124.2 |
121.7 |
-7.6 |
-5.8 |
Portland cement concrete |
160.2 |
163.9 |
159.9 |
-2.3 |
0.2 |
Bituminous concrete |
134.0 |
134.1 |
119.4 |
-0.1 |
12.2 |
Composite surfacing |
142.6 |
143.9 |
132.7 |
-0.9 |
7.5 |
Reinforcing steel |
130.1 |
126.8 |
118.1 |
2.6 |
10.2 |
Structural steel |
132.7 |
138.0 |
133.3 |
-3.8 |
-0.5 |
Structural concrete |
146.1 |
142.9 |
143.8 |
2.2 |
1.6 |
Composite structures |
139.8 |
138.9 |
136.6 |
0.6 |
2.3 |
Composite price index |
137.2 |
138.7 |
132.8 |
-1.1 |
3.3 |
The U.S. average contract unit prices for the index items during the various periods shown are:
Individual Quarters |
Three-Quarters |
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Component |
Unit |
4th Quarter 1999 |
1st Quarter 2000 |
3rd Quarter 1999* |
4th Quarter 1999** |
Excavation |
Cubic yard |
$2.65 |
$2.71 |
$3.01 |
$2.78 |
Portland cement concrete |
Square yard*** |
28.04 |
25.17 |
24.16 |
23.60 |
Bituminous concrete |
Ton |
33.00 |
32.65 |
33.04 |
33.04 |
Reinforcing steel |
Pound |
0.568 |
0.590 |
0.559 |
0.573 |
Structural steel |
Pound |
1.304 |
1.079 |
1.222 |
1.175 |
Structural concrete |
Cubic yard |
373.81 |
364.40 |
344.14 |
351.75 |
*Weighted average unit prices for the last three quarters of 1999.
**Weighted average unit prices for the last two quarters of 1999 and the first quarter of 2000.
***Prices for Portland cement concrete surfacing reflect adjustments to a standard 9-inch thickness and do not include costs for reinforcing steel and joints