Bridge Construction Estimates Escalation
Bridge Construction Estimates Escalation
(OP)
I am curious to know the effect of the rise in the cost of construction materials, is having on the engineer's construction estimates for bridges around the U.S.
In the State of Georgia we have traditionally had extremely low costs, on average $65/sf for AASHTO beam bridges, $80/sf for steel (rolled and plate girder). These estimates were pretty good until 2 or 3 years ago. My company is currently using estimates around $100/sf for concrete and $135 to $150/sf for steel (Girders not box beams). It is hard to know if these values are in the ballpark since it seems to vary quite a bit from month to month.
What kind of escalation have others been experiencing from what they used a few years ago?
In the State of Georgia we have traditionally had extremely low costs, on average $65/sf for AASHTO beam bridges, $80/sf for steel (rolled and plate girder). These estimates were pretty good until 2 or 3 years ago. My company is currently using estimates around $100/sf for concrete and $135 to $150/sf for steel (Girders not box beams). It is hard to know if these values are in the ballpark since it seems to vary quite a bit from month to month.
What kind of escalation have others been experiencing from what they used a few years ago?





RE: Bridge Construction Estimates Escalation
Our state DOT has put out more recent price data on bid items which confirms this trend is happening state wide .
All estimates for the jobs I’m currently working on are based on these inflated prices, which has let to estimated construction costs far over budgeted amounts. What can you do though…you have to be realistic about the cost.
RE: Bridge Construction Estimates Escalation
RE: Bridge Construction Estimates Escalation
RE: Bridge Construction Estimates Escalation
a.) How does the increase in construction costs and uncertainty when costs will begin to stabilize, effect how you determine constuction value during the concept stage of a project that may not let for several years?
b.) Do you base your engineering fee on current estimated construction value or the projected construction value?
c.)Is it ethical to increase engineering fees to reflect the higher cost of construction, outside of normal inflation and labor increases?
Let me explain part c; my thoughts are that the increase in construction cost is mainly due to material costs, and has little effect on the effort required to complete the design. If material costs are rising at a rate faster than inflation and labor costs then the final construction cost will be much greater than the original estimate. (30% or more from responses so far) Engineering fees will increase but only due to inflation and labor increases. The value of the engineering services decreases as it is related to the final completed costs. Do engineers increase fees by 30% + to capture the expected increase in construction and keep engineering fees vs construcion value at the current percentages?
Sorry... I'm explaining part c with part d.
RE: Bridge Construction Estimates Escalation
b) our fees are not directly related to the construction cost (too bad for us!) However, our fees have gone up substantially due to increases in our overhead costs.
RE: Bridge Construction Estimates Escalation
RE: Bridge Construction Estimates Escalation
RE: Bridge Construction Estimates Escalation
http:
They put the increase at 22% over two years, which agrees with what others in this thread have reported.
RE: Bridge Construction Estimates Escalation
While there is some cost associated with construction claims due to incomplete or faulty design, these costs do not be happen on every project. Most of the contractors I have worked with catch constructabilty issues before they bid the job and those that they miss are worked out before they result in a claim.
We seem to throw the blame on in-experienced designers for a lot of things on this site... but the increase in constuction costs? C'mon. Material, fuel and labor costs are the primary reasons for the recent sharp rise in construction costs.
RE: Bridge Construction Estimates Escalation
http://ww
As a chief estimator at a public works contractor I can vouch for the increased costs of materials. It also affects how we price long term work, e.g. two years or more. A smart owner will include a market escalation clause in the contract so that they are not paying a premium for the contractor to take the risk. The more risk pushed down to the contractor, the higher the margin.
RE: Bridge Construction Estimates Escalation
RE: Bridge Construction Estimates Escalation
RE: Bridge Construction Estimates Escalation
RE: Bridge Construction Estimates Escalation
RE: Bridge Construction Estimates Escalation
I have to agree with your observation about inexperienced designers. I've seen it first hand in the office but it's usually engineers with 5+ years under their belts. Some recent incidents: "...I need Number 5's at 12 but I think I'll call for Number 6 @ 9 to be certain..." ; "...I need 7 piles but I'm using 12 because it looks better...", and "... I could put the footing at -4 but I already drew it at -8...".
Sometimes I can can things and other times I'm told to MMOB.