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Title:

Suitability Analysis of Existing Construction Cost Indexes for the Minnesota Department of Transportation Construction Projects

Accession Number:

01555163

Record Type:

Component

Availability:

Transportation Research Board Business Office

500 Fifth Street, NW
Washington, DC 20001 United States

Abstract:

The suitability analysis presented in this paper was conducted during the development of an Indefinite Delivery/Indefinite Quantity (IDIQ) implementation guide for the Minnesota Department of Transportation (MnDOT) in an effort to find a fair and equitable approach to adjust unit prices in multi-year, single award, IDIQ contracts. However, this analysis is not restricted to contracts executed using IDIQ alone. This study compares the ability of several composite Construction Cost Indexes (CCIs) to reasonably estimate actual overall cost changes in MnDOT highway construction projects. The paper presents a qualitative analysis of general principles and assumptions associated with the development, maintenance, and use of CCIs. This analysis highlights the mismatch and lack of proportionality between CCI components and actual project activities as factors that hinder the efficient use of CCIs. The paper also presents a statistical analysis of twelve different composite indexes, including one published and maintained by MnDOT. All indexes were applied to four different types of projects over a five- year period. The paper concludes that MnDOT should develop an alternative price escalation method since all CCIs yielded values significantly different to those observed in MnDOT historical bid data.

Supplemental Notes:

This paper was sponsored by TRB committee AFH10 Construction Management. Alternate title: Suitability Analysis of Existing Construction Cost Indexes for Minnesota Department of Transportation Construction Projects

Monograph Accession #:

01550057

Report/Paper Numbers:

15-2293

Language:

English

Corporate Authors:

Transportation Research Board

500 Fifth Street, NW
Washington, DC 20001 United States

Authors:

Rueda, Jorge A
Gransberg, Douglas D

Pagination:

16p

Publication Date:

2015

Conference:

Transportation Research Board 94th Annual Meeting

Location: Washington DC, United States
Date: 2015-1-11 to 2015-1-15
Sponsors: Transportation Research Board

Media Type:

Digital/other

Features:

Figures; References; Tables

Subject Areas:

Administration and Management; Construction; Finance; Highways; I10: Economics and Administration; I52: Construction of Pavements and Surfacings

Source Data:

Transportation Research Board Annual Meeting 2015 Paper #15-2293

Files:

TRIS, TRB, ATRI

Created Date:

Dec 30 2014 12:48PM