The Effect of “Federal -Aid Swap” Programs and Davis-Bacon Prevailing Wages on Highway Construction Costs and Contractor Composition: Evidence From Iowa

2021 ◽  
pp. 0160449X2110494
Author(s):  
Frank P. Manzo
Keyword(s):  
Local Governments ◽  
Construction Projects ◽  
Highway Construction ◽  
Federal Aid ◽  
Construction Costs ◽  
Highway Projects ◽  
Percentage Points ◽  
Using Data ◽  
Project Location ◽  
The Cost

“Federal-aid swap” programs allow states and local governments to bypass federal Davis-Bacon prevailing wages and Disadvantaged Business Enterprise (DBE) goals by exchanging federal funds that have been allocated to highway projects with state funds. The Iowa Department of Transportation approved a federal-aid swap program in February 2018. Using data on more than 1,200 highway construction projects in Iowa from 2016 to 2020, I find that the cost of projects in the federal-aid swap program are not statistically different from those that were not swapped, after accounting for project size and complexity, project type, and project location. Regression results indicate that Davis-Bacon prevailing wages and DBE goals have no effect on total construction costs. However, the federal-aid swap program is statistically associated with a decrease in the likelihoods that a project is covered by the Davis-Bacon Act by 10 percentage points and DBE goals by 4 percentage points. Because the payment of Davis-Bacon prevailing wages is statistically associated with an 8 percentage-point decrease in the chances that a highway project is awarded to an out-of-state contractor, the federal-aid swap program may have increased the market share of out-of-state contractors at the expense of Iowa-based contractors.

Managing Public Communication Strategies in Accelerated Highway Construction Projects

2018 ◽  
Vol 2672 (26) ◽  
pp. 1-10
Author(s):  
Farzad Minooei ◽  
Nathaniel Sobin ◽  
Paul M. Goodrum ◽  
Keith R. Molenaar
Keyword(s):  
Traffic Congestion ◽  
Construction Projects ◽  
Highway Construction ◽  
High Tech ◽  
Success Factor ◽  
Highway Projects ◽  
Safety Issues ◽  
Community Stakeholders ◽  
Construction Techniques ◽  
Communication Goals

An increase in traveling demands has urged state transportation agencies (STAs) to shorten highway construction project duration, using a variety of accelerated construction techniques and strategies. However, accelerated highway construction projects may impact communities in terms of traffic congestion, safety issues, and other public inconveniences. Effective communication with community stakeholders about these potential inconveniences can provide an opportunity to highlight innovative accomplishments and increase trust between STAs and the traveling public. Therefore, as some studies have shown, effective management of outreach strategies is a key success factor of accelerated construction projects. One of the main goals of this study is to gauge the effectiveness of public outreach tools and strategies in meeting different communication goals, including traffic avoidance, increasing driving awareness, decreasing impatient behavior, and building trust with the public. These tools range from traditional, low-tech methods, such as town hall meetings and static traffic signage, to high-tech methods, such as websites and social media. The data for this research is based on a survey of 71 experts from 40 different STAs. Statistical analyses (analysis of variance) indicate that the effectiveness of outreach tools vary significantly in achieving different communication goals during the construction phase of accelerated highway projects. In addition, the results allowed us to find the most appropriate outreach tools and strategies based on project characteristics and target audience. The findings of this research can help STAs and other public administrators to better manage their outreach activities during the accelerated construction projects.

Effect of change orders on rework in highway projects in Palestine

2017 ◽  
Vol 22 (1) ◽  
pp. 62-76 ◽  
Author(s):  
Ibrahim Mahamid
Keyword(s):  
Construction Projects ◽  
West Bank ◽  
Highway Construction ◽  
The West ◽  
Highway Projects ◽  
Change Orders ◽  
Content Type ◽  
Design Changes ◽  
Common Causes ◽  
The Impact

Purpose This study aims at identifying the main causes of change orders in highway construction projects, determining the factors that affect rework in highway construction projects, examining the relationship between change orders and rework and at developing a predictive model that will determine the impact of change orders on rework in highway construction projects in Palestine. Design/methodology/approach A questionnaire survey was used to identify the main change order causes and rework causes from the perspectives of contractors and consultants. The questionnaire contained 16 causes of change orders and 19 causes of rework which had been identified from the literature reviewed. The study also identifies the impact of change orders on rework based on data comprising 22 highway construction projects implemented in Palestine. Both descriptive and inferential statistics were used in analyzing the data. Findings The study concluded that the five most common causes of change orders can be identified as: change of project scope by owner (additional – enhancement), lack of coordination between construction parties; owner’s financial difficulties, change in materials, and errors and omissions in design. The study has also established that among the various factors that causes rework, non-conformance with specification requirements, scope changes, late design changes, lack of labor experience, lack of labor skills and improper subcontractor selection top the list. Using regression analysis, the results reveal a significant relationship between change orders and rework cost in highway construction projects in Palestine. Practical implications By ranking the various change orders causes and rework causes from the perspectives of consultants and contractors, the study provides a fresh perspective on an old chronic problem in the construction sector. This study has provided evidence on the most significant change orders causes and rework causes in the Palestinian highway construction, as well as the impact of change orders or rework on constructions sites. Finally, although this study is specific to the country of Palestine, its results can be applicable to other developing countries facing similar problems in their public construction sectors. Originality/value The results address the common causes of change orders and reworks in highway construction projects in Palestine. The results also address the relation between change orders and rework cost based on data collected from highway construction projects implemented in the West Bank in Palestine. This study is the first study conducted in the West Bank in Palestine to identify the change orders and reworks causes in highway construction projects.

scholarly journals Cost diviation in road construction projects: The case of Palestine

2012 ◽  
Vol 12 (1) ◽  
pp. 58-71 ◽  
Author(s):  
Ibrahim Mahamid ◽  
Amund Bruland
Keyword(s):  
Regression Models ◽  
Construction Projects ◽  
Road Construction ◽  
Statistical Relationship ◽  
Actual Cost ◽  
The West ◽  
Data Regression ◽  
Project Size ◽  
Using Data ◽  
The Cost

This paper investigates the statistical relationship between actual and estimated cost of road construction projects using data from road construction projects awarded in the West Bank in Palestine over the years 2004–2008. The study is based on a sample of 169 road construction projects. Based on this data, regression models are developed. The findings reveal that 100% of projects suffer from cost diverge, it is found that 76% of projects have cost under estimation while 24% have cost over estimation. The discrepancy between estimated and actual cost has an average of 14.6%, ranging from -39% to 98%. The relation between the project size (length and width) and the cost diverge is discussed.

Compensating Changes to the Property Tax Levy? An Empirical Test of the Residual Rule

2017 ◽  
Vol 46 (6) ◽  
pp. 949-973 ◽  
Author(s):  
Spencer T. Brien
Keyword(s):  
Local Governments ◽  
Formal Model ◽  
Empirical Test ◽  
Property Tax ◽  
Tax Administration ◽  
County Governments ◽  
Active Approach ◽  
The Difference ◽  
Using Data ◽  
The Cost

The residual view of the property tax assumes that local governments set their levies equal to the difference between budgeted expenditures and expected receipts from other revenues. This approach allows them to adjust the levy to achieve greater overall revenue stability potentially at the cost of tax predictability. This article presents a formal model of the residual rule and uses it to test whether this active approach to property tax administration describes observed fiscal behavior. This test is conducted using data from county governments in Georgia over a fifteen-year period. The results support the validity of the residual rule over an alternative model of passive tax administration.

Profile Monitoring for Examining Impact of Hurricane Katrina and Rita on Highway Construction Cost

2018 ◽  
Vol 2672 (51) ◽  
pp. 79-87 ◽  
Author(s):  
Minsoo Baek ◽  
Baabak Ashuri
Keyword(s):  
Hurricane Katrina ◽  
Control Chart ◽  
Construction Projects ◽  
Large Scale ◽  
Investment Decisions ◽  
Unit Price ◽  
Construction Costs ◽  
Highway Projects ◽  
Considerable Uncertainty ◽  
Cusum Control Chart

Extensive destruction and damage to communities in the aftermath of large-scale disasters such as hurricanes, floods, and earthquakes can cause substantial disorder in social and economic activity. The ensuing repercussions to social and economic systems lead to considerable uncertainty in continuing existing construction projects and implementing new reconstruction is problematic for accurately determining construction costs and making appropriate investment decisions. A large-scale disaster magnifies the importance of empirically examining variations in construction costs. Therefore, the overarching objective of this research is to analyze submitted unit price bids for superpave asphaltic concrete line items for highway projects let in the state of Louisiana after hurricanes Katrina and Rita. We employ two-way analysis of variance and a cumulative sum (CUSUM) control chart to monitor and detect changes in submitted unit price bids for hurricane- and non-hurricane-impacted areas. The results of the CUSUM control chart indicate that unit price bids for asphalt line items in the impacted areas significantly increased immediately after Hurricane Katrina and Rita hit the Gulf of Mexico, and those in the non-hurricane-impacted areas significantly increased six months after the hurricane. The findings of this research enable transportation agencies to more closely estimate the cost of rebuilding highway projects and make more-informed investment decisions for highway recovery programs in the aftermath of large-scale disasters.

A preliminary study of the factors affecting the cost escalation of construction projects

2000 ◽  
Vol 27 (1) ◽  
pp. 73-83 ◽  
Author(s):  
Karla Knight ◽  
Aminah Robinson Fayek
Keyword(s):  
Fuzzy Logic ◽  
Construction Projects ◽  
Labour Productivity ◽  
Membership Functions ◽  
Monitoring And Control ◽  
Construction Costs ◽  
Cost Overruns ◽  
Factors Affecting ◽  
Definition Of ◽  
The Cost

An interview survey of Alberta-based construction contractors was conducted in July and August 1998. The purpose of this survey was to elicit information on the factors that cause unanticipated project cost escalation during construction, from the contractor's perspective. This paper presents the findings of this survey and a proposed method of modeling the factors identified. The majority of factors identified impact labour productivity, which is a major source of cost overruns. A combination of subjective, objective, and secondary indicators are used to measure these factors and to assess their impact on project performance. The main conclusion of this survey is that many of the factors affecting the cost of construction are evaluated in subjective and imprecise terms and are difficult to quantify. This paper presents a method of modeling these factors using fuzzy membership functions, which capture the imprecision and subjectivity associated with the measurement of these factors. It discusses a basis for the definition of these membership functions and a method of calibrating these functions to make them more widely applicable to suit different contexts. These membership functions are being incorporated in a set of expert rules, which reason about the factors affecting costs, their impact on the project, and the appropriate corrective actions. These expert rules are being developed as part of a fuzzy expert system for construction project monitoring and control. A method of calibrating membership functions to suit individual contexts is currently being developed, which would be a significant advancement in the area of fuzzy logic. Key words: construction, costs, expert systems, fuzzy logic, project control, survey.

scholarly journals THE FORMATION PROCEDURE OF THE ESTIMATED CONSTRUCTION COSTS OF ROOM FUNCTION GROUPS

2018 ◽  
pp. 315-321
Author(s):  
N. SAMAL
Keyword(s):  
Cost Estimation ◽  
Capital Investment ◽  
Construction Projects ◽  
Building Construction ◽  
Preliminary Design ◽  
Construction Costs ◽  
Investment Volume ◽  
Calculation Methodology ◽  
Definition Of ◽  
The Cost

The article is concerned with the problem of cost estimation for multifunctional construction projects on the stage of pre-investment feasibility study. For addressing issues such as the definition of capital investment unto the property assets the author considers the procedure of construction cost estimation on the base of the cost indicators of room function groups. On a research basis the author has developed the calculation methodology of the cost indicators of room function groups. Room function groups present the assembly of spatially connected facilities and communication passages which are focused on define operations functions accomplishment. There is the procedure of the application of room function groups costs for the definition of the investment volume in building construction in the phase of poorly detailed preliminary design.

Exploring Instrumentation and Sensor Technologies for Highway Design and Construction Projects

2020 ◽  
Vol 2674 (9) ◽  
pp. 593-604
Author(s):  
Christofer M. Harper ◽  
Daniel Tran ◽  
Edward Jaselskis
Keyword(s):  
Construction Projects ◽  
Highway Construction ◽  
Handheld Devices ◽  
Extensive Literature ◽  
Highway Design ◽  
Highway Projects ◽  
Intelligent Compaction ◽  
Positioning Systems ◽  
Thermal Profiling ◽  
Ground Penetrating

With the infusion of emerging technologies into highway construction practices, state departments of transportation (DOTs) can make better informed decisions that positively influence cost, schedule, quality, and safety. DOTs are increasingly using instrumentation and sensor technologies for delivering highway projects across the U.S.A. Instrumentation devices and sensors include such technologies as remote sensing, real-time kinematics, global positioning systems, digital handheld devices, ground penetrating radar, and intelligent compaction/thermal profiling. These technologies are becoming commonplace in highway construction because of their capabilities to improve the construction process by making activities more efficient and more productive. However, the practices in using instrumentation and sensor technologies for highway construction vary among state DOTs. Therefore, this study investigates how DOTs employ the use of instrumentation and sensor technologies for highway construction. This study engaged a research methodology that included an extensive literature review, survey questionnaire, and case studies of state DOTs. Results show that 31 state DOTs use instrumentation and sensor technologies for monitoring work progress, conducting quality control and quality assurance, performing construction inspections, identifying optimal conditions and recording the placement of work, and locating utilities. The main barriers to using instrumentation and sensor technologies include analyzing the large amount of data, verifying the accuracy of the data, ensuring staff have the skills and knowledge to use the technologies efficiently, and assisting smaller contractors to gain the knowledge to use these technologies. The findings from this study provide recommendations and strategies for DOTs to implement instrumentation and sensor technologies effectively for highway construction.

Based on Factor Analysis of Building Influencing Factors System of the Highway Construction Project's Cost

2013 ◽  
Vol 357-360 ◽  
pp. 2603-2609 ◽  
Author(s):  
Li Ming Xia ◽  
Kun Lin Song ◽  
Zhi Qiang Deng
Keyword(s):  
Factor Analysis ◽  
Influencing Factors ◽  
Construction Projects ◽  
Cost Control ◽  
Highway Construction ◽  
Cost Controlling ◽  
The Cost

Building of highway construction projects cost influencing factors system is the key to cost controlling. This paper analyses actual division of the projects cost about section two of coastal avenue north and coastal avenue south extension and Nan gang highway, and draws out the cost of primary and secondary influencing factors. Besides, based on factor analysis this paper establishes influencing factors system of highway construction projects cost, and provides reference for cost control.

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