Legislative review finds soaring building costs, calls for tighter feasibility studies and clearer 'betterment' rules

A legislative review of the Division of Facilities Construction and Management (DFCM) presented to the Transportation and Infrastructure Interim Committee on Oct. 14 concluded state buildings are far more expensive to build now than a decade ago and recommended changes to how projects are scoped, priced and procured.

Marvin Dodge, executive director of the Department of Government Operations, told the committee: "The price has dramatically increased," and showed a chart that, he said, reflects a roughly 236% escalation on certain DFCM project cost estimates over 10 years.

Why it matters: committee members and DFCM leaders said the state routinely relies on feasibility studies that provide high‑level, rough order‑of‑magnitude prices. Those figures often travel with a project through the executive and legislative budget process and can lead to surprise cost increases later. The committee was shown how feasibility studies frequently include extensive wish‑lists from agencies and campus stakeholders, leaving legislators without clear detail about what is core to a building’s program and what is an optional upgrade or "betterment."

DFCM's recommendatio…