01477034

Component

Contractors may inflate the bid price for a construction project in order to cover the potential increased cost for various bid items. In an attempt to moderate the inflation inserted into bid prices, Departments of Transportation (DOTs) allow for fuel adjustments in the monthly payment to the contractor. The fuel price adjustment is a function of fuel usage factor values for bid items based on a 1974 national survey titled, “Fuel Usage Factors for Highway Construction.” For example, the fuel usage factor for structures is multiplied by the gallons of fuel used per $1,000 worth of work. The research reported in this paper uses a recent national survey by the authors to determine whether states, and their DOTs use this same procedure to calculate a fuel price adjustment, and if so, whether the values for the fuel usage factors are the same. In addition, the paper examines how the price of structural construction has changed over time to establish whether the current fuel usage factor for structures, based on fuel usage per dollars of construction is still applicable. A new index of construction items is developed for both a national and state model (Oregon).

This paper was sponsored by TRB committee AFH10 Construction Management.

01470560

13-4227

English

13p

2013

Transportation Research Board 92nd Annual Meeting

Digital/other

References; Tables

Case studies; Construction management; Contracts; Cost indexes; Fuel consumption; Prices; Road construction; State departments of transportation; Surveys

Oregon Department of Transportation

Construction; Economics; Finance; Highways; I10: Economics and Administration; I50: Construction and Supervision of Construction

Transportation Research Board Annual Meeting 2013 Paper #13-4227

TRIS, TRB, ATRI

Feb 5 2013 12:49PM