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High prices hinder construction.(OPERATIONS)
- Article from:
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Public Works
- Article date:
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August 1, 2006
- Author:
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Copyright informationCOPYRIGHT 2006 Hanley-Wood, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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With no end in sight to rising oil prices and the increasing global demand for cement, transportation projects continue to experience significant delays.
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According to the American Road and Transportation Builders Association, highway and street construction costs increased 16.4% in May 2006 compared to May 2005. Over the past two years, material costs have jumped 22%.
Unfortunately for public works departments, supply costs are rising faster than municipal budgets. Federal funding for highways is set to increase 4.5% each year until SAFETEA-LU is no longer active. With construction costs exceeding the allotment outlined in SAFETEA-LU, additional ...