SCDOT Response to Reports of Overruns on Two Interstate Projects
December 14, 2011
COLUMBIA, SC – December 14, 2011 – This release is a response by the South Carolina Department ofTransportation (SCDOT) to a report published in the Greenville News onSunday December 11, 2011 to what was termed cost overruns on thenow-complete I-385 reconstruction and widening in Laurens County, andthe pending project to reconstruct and widen I-20 in Richland County.
SCDOT welcomes constructive input and information related tomanagement of construction projects and strives to ensure that projectsare 1) completed on time, 2) cause the least disruption to trafficpossible during construction and 3) complete each job within the budgetsestablished for construction.
Interstate I-385 was originally a primary route, US 276 that wasadded to the interstate system in the 1980s with no upgrades. Thepavement condition of I-385 in Laurens County (approximately 15 miles)had deteriorated to the point where a major reconstruction of thehighway was required. The project was designed to completely replace theexisting pavement and bring the highway up to interstate standards interms of shoulder widths which improves safety. The project required abridge replacement near the intersection of I-385 and I-26 as well.
The standard procedure for this project would have put extended laneclosures in place, requiring a three-year work schedule. SCDOT engineersproposed a plan for construction that was approved by the FederalHighway Administrations (FHWA) South Carolina Division. The projectwould completely shut down the interstate in one direction until thatportion of I-385 had been completed. Detours would be designed for thatdirection of I-385 until the work was done. This plan allowed a typicalthree-year project to be completed in just short of eight months, whichsaved the taxpayers $35 million in construction costs and saved over twoyears of interstate congestion. This information was not reported bythe Greenville News.
The contract approved by FHWA and awarded to McCarthy ImprovementCompany was in the amount of $45,911,355. Payment for change orders andcontract overruns totaled $2,440,401, or 5.3% of the original contract.The Greenville News incorrectly reported this figure to be 9% of theoriginal contract amount.
The contract also provided incentives to be paid to the contractor forearly completion, concrete thickness and concrete strength. The contractincluded standard cost adjustments for asphalt and fuel, bothcommodities having prices which rose regularly throughout the project.
The contractor was paid an additional $3.7%, or $1,714,796 for these twoitems as provided for or anticipated in the original contract. TheGreenville News incorrectly reported the contract incentives andadjustments as cost overruns.
The proposed reconstruction and widening of I-20 in Richland Countyinvolves a six-mile section from I-77 to Spears Creek Church Road. Theproject also includes the installation of sound barrier walls on certainsections of the project. During the public involvement process, theproject design was modified in response to requests and input receivedfrom the public to include additional noise walls.
The State Transportation Improvement Program (STIP), which is a planningdocument and not a contract amount was revised raising the $75.2million budgeted for this project to $103.5 million in June of 2011. Theincrease in the budget resulted from the updating of quantities andproject requirements that had become known through the projectdevelopment process.
The project budget, as outlined in the STIP at this point in time isexpected to be sufficient to complete the project over the next 24-30months. Bids are expected to be received in early 2012.
Contrary to comments made in the Greenville News story, these changesare not cost overruns, but updated costs for the additional items thatare necessary to allow this project to be completed properly during theconstruction phase. SCDOT is hopeful that bids will be favorable forthe project, and may even come in at a lower price than the currentestimate.
The Greenville News referenced a report produced by the NationalCooperative Highway Research Program (NCHRP), which is an organizationthat conducts research in problem areas that affect highway planning,design and construction. A total of 39 states participated in a studythat rated each state on the percentage of projects completed withinbudget. The study revealed that SCDOT would rank in the top five amongthose 39 states.
Attached is a chart that shows SCDOT performance for completing projects for the past five years vs. the national average.
http://www.scdot-transfer.org/SCDOTPhotos/ProjectsvsNationalAverage.pdf
