The demand for construction services and asphalt pavement materials continues to increase. The economic forecast released by the Colorado Legislative Council calls for non-residential construction spending to increase 4.5% in 2017. This increase is from several market sectors including commercial development, oil and gas development, and governmental investment in streets, roads, highways, and airports. The 2nd Q 2016 Turner Building Cost Index reflects a 4.80% yearly construction cost increase from the 2nd Q 2015 and this is expected to continue into 2017.
Why do our Bids Vary from the Project Estimate?
A recent APWA survey found that over 50% of public projects are completed over budget, partly due to;
• Outdated or inaccurate estimates
• Changes in Project Scope
• Inflation – consumer costs, other
• Market Conditions – Supply/Demand, high costs from subcontractors, increasing health care costs, increasing costs to find, hire and train a new employee
• Short supply of subcontractors including DBE subs
• Contract Requirements – traffic control, testing, inspection
• Cost of Doing Business: permitting, environmental
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