FHWA Reports Road Construction Costs Up in Fourth Quarter of 2000

Topics:  Federal Highway Administration

Federal Highway Administration
January 23, 2001

FOR IMMEDIATE RELEASE

Tuesday, January 23, 2001

Contacts:

Karen Whitney, (202) 366-0660

Claretta Duren, (202) 366-4636

FHWA 6-01

The Federal Highway Administration (FHWA) today announced that highway
construction costs increased 8.7 percent in the fourth quarter of 2000 compared
to the third quarter of 2000, and increased 4.0 percent compared to the fourth
quarter a year ago.
The fourth quarter results raised the FHWA's composite index for highway
construction costs to 149.9 percent of the 1987 base index (1987 average costs
equal 100 percent).
Increases in the unit prices for bituminous concrete, reinforcing steel,
common excavation, structural steel, portland cement concrete and structural
concrete raised the index in the fourth quarter.
The three-quarter moving composite price index for the third quarter of 2000
– obtained by combining data for the last three quarters of 2000 – increased
3.1 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:

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.