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As a local engineer and former State engineer, I'll list the top 3 things that cause massive delays and high costs.
1) NEPA process: All federal projects and some State projects must follow the NEPA process. The process adds 1-2 years of design and bureaucracy on a project. NEPA compliance probably cost 10% of a completed construction project. Once you add in 4f (common use land recreation) and 6f (recreational waters) processes, add 6 months to a year on top of the 1-2 year process.
2) Other laws and regulations: Laws like Davis-Bacon and eminent domain (court) costs add millions to a project. The last residents to hold out get the biggest checks. Army core of Engineers often claim navigable waterways and add significant cost and time to projects due to access and preservation, plus any wetlands created by previous projects (roadway ditches/ponds/pipe outfalls) will require NEPA process.
There are countless more FHWA/State/Local regulation since every entity have a huge standards manual to follow. There is already an AASHTO green book for standards, yet everybody needs to be special and add 50% more standards on top. It's always more expensive and less reliable when you "over engineer".
3) Monopolies and duopolies: Vast majority of the time, projects are bid by a half dozen prime contractors, but there are often few sub contractor choices. So the cost remains high even if there are half dozen bidders due to steady costs of the subs. Then some places only have 1~3 contractors that does concrete and asphalt. Records have shown asphalt unit prices compared to only 1 bidder in the area will drop 40% if there is a 2nd bidder and 50% with 3 bidders. Incompetent contractors do get debarred if they screw up pretty badly. 95% of the time, the spineless government entity just pays contractors to fix the problems twice. A co-worker recently told me about a project. The project needed additional storm water pipe and they added 8-10 feet of pipe plus a manhole, the contractor filed a claim for 360k using time and materials records. It was recommended to paid them unit price totaling $3000. The upper management "settled" for 180k. I've seen a project where the contractor filed a claim for 80k because they had to get additional cut/fill sites. How the contractor dispose of materials is included in the bid price and there should be no additional payment. Management settled for 35k. I have never seen upper management stand firm and not pay a claim. Contractors play this claim-game, especially when they have enough political contributions to influence governor, secretary, upper manager levels.
Bonus 4) Some project delays and added costs are due to bureaucracy and politics. Politicians do ask/demand changes and most of the time they get what they want or some kind of comparable workaround. Internal bureaucracy is both poor decision making and people that won't make decisions and take responsibility. This usually cost a lot of time. Politicians demands can cost money but they're pretty small scale on the state/local level. This section really adds more headaches than time or money because politicians want to have successful projects.
As great as America is in some aspects, it's terribly inefficient and downright incompetent when it comes to anything infrastructure related.
Part of my frustration is that it didn't used to be this way. Infrastructure projects such as the Hoover Dam, the Golden Gate Bridge, etc are examples.
As a local engineer and former State engineer, I'll list the top 3 things that cause massive delays and high costs.
1) NEPA process: All federal projects and some State projects must follow the NEPA process. The process adds 1-2 years of design and bureaucracy on a project. NEPA compliance probably cost 10% of a completed construction project. Once you add in 4f (common use land recreation) and 6f (recreational waters) processes, add 6 months to a year on top of the 1-2 year process.
2) Other laws and regulations: Laws like Davis-Bacon and eminent domain (court) costs add millions to a project. The last residents to hold out get the biggest checks. Army core of Engineers often claim navigable waterways and add significant cost and time to projects due to access and preservation, plus any wetlands created by previous projects (roadway ditches/ponds/pipe outfalls) will require NEPA process.
There are countless more FHWA/State/Local regulation since every entity have a huge standards manual to follow. There is already an AASHTO green book for standards, yet everybody needs to be special and add 50% more standards on top. It's always more expensive and less reliable when you "over engineer".
3) Monopolies and duopolies: Vast majority of the time, projects are bid by a half dozen prime contractors, but there are often few sub contractor choices. So the cost remains high even if there are half dozen bidders due to steady costs of the subs. Then some places only have 1~3 contractors that does concrete and asphalt. Records have shown asphalt unit prices compared to only 1 bidder in the area will drop 40% if there is a 2nd bidder and 50% with 3 bidders. Incompetent contractors do get debarred if they screw up pretty badly. 95% of the time, the spineless government entity just pays contractors to fix the problems twice. A co-worker recently told me about a project. The project needed additional storm water pipe and they added 8-10 feet of pipe plus a manhole, the contractor filed a claim for 360k using time and materials records. It was recommended to paid them unit price totaling $3000. The upper management "settled" for 180k. I've seen a project where the contractor filed a claim for 80k because they had to get additional cut/fill sites. How the contractor dispose of materials is included in the bid price and there should be no additional payment. Management settled for 35k. I have never seen upper management stand firm and not pay a claim. Contractors play this claim-game, especially when they have enough political contributions to influence governor, secretary, upper manager levels.
Bonus 4) Some project delays and added costs are due to bureaucracy and politics. Politicians do ask/demand changes and most of the time they get what they want or some kind of comparable workaround. Internal bureaucracy is both poor decision making and people that won't make decisions and take responsibility. This usually cost a lot of time. Politicians demands can cost money but they're pretty small scale on the state/local level. This section really adds more headaches than time or money because politicians want to have successful projects.
Very helpful. thanks a lot for taking the time to post it
Part of my frustration is that it didn't used to be this way. Infrastructure projects such as the Hoover Dam, the Golden Gate Bridge, etc are examples.
When I drive cross-country, I'm always struck by how much public construction took place in the 1950s and '60s. There was the interstate highway system with the associated rest stops and toll plazas, as well as schools and hospitals, all in the same architectural style (long, low brick rectangles). Amazing that they were able to get so much done, and sad that we're not willing to maintain it.
Of course americans aren’t willing to maintain it- that would mean having to spend money, and spend it on things that benefit everyone(!)
As a whole, we tend to like things cheap and fast. Sad.
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