Project 3.20: Analysis of MaineDOT Road and Bridge Infrastructure Construction Costs
Dr. Jonathan Rubin
Dr. Erin Brown
Dr. Peter O’Brien
University of Maine
Implementation of Research Outcomes:
Combining lack of competition between bids for high-value projects with general inflationary pressures, supply chain delays, labor availability, and associated added risks, the MaineDOT and its contractors are facing serious barriers to completing highway and bridge projects in a timely and affordable manner. Considering all cost drivers, our analysis provides support to MaineDOT’s observations of a general increase in construction costs of approximately 40% across most of its construction project types from 2018 to present, though individual project complexity, size and timing matter significantly.
Impacts and Benefits of Implementation:
State engineers should expect any given project cost to be well above levels seen for comparable work prior to 2020. Moving forward, we believe the key to incentivizing lower bid offer amounts is to reduce perceived risk and uncertainty for firms.