Texas highway projects feeling the impact of supply chain constraints

KUT 90.5 / KUT.org

Construction material shortages are delaying TxDOT projects and driving up their costs

https://www.kut.org/transportation/2022-04-22/construction-material-shortages-are-delaying-txdot-projects-and-driving-up-their-costs

“A shortage of building materials like steel and concrete is driving up costs for Texas Department of Transportation road projects and could delay some construction contracts.

"We have also seen significant increases (over 100% in some cases) in some material prices," TxDOT's Construction Division Director Duane Milligan wrote in an internal memo dated April 5.

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"Contractors all over the country have been running into extreme price increases and delays on getting materials delivered, and shortages of workers to perform the work when they do have the materials," said Ken Simonson, chief economist with the Associated General Contractors of America.

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Milligan offered a handful of tactics to officials in TxDOT's 25 district offices for dealing with shortages and price hikes, including delaying projects to give contractors more time to get the materials they need.

District engineers and construction managers could also substitute construction materials "when the substituted material and design serves the same function of the original design," Milligan wrote.

The memo advised local TxDOT officials to consider removing work or materials from a road project "when the deletion will not affect the safety of the completed project."