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Agency engineers warn construction costs and bid volatility have cut buying power for projects
Summary
The Agency of Transportation reported large recent increases in construction-input costs and sharply higher bid volatility, saying those changes have reduced buying power and complicated project delivery and budgeting.
Jeremy Reid, chief engineer for the Agency of Transportation, briefed the Senate Transportation Committee on recent inflationary impacts to construction projects and the resulting bid volatility.
Reid presented national and Vermont-specific data showing sharp input-price increases since 2020 and higher volatility in contractor bids. "From the Q4 of 2020 to today, there's been 54% increase in that 3 year period in construction costs," he said, citing Federal Highway and industry indices.
He highlighted material-specific jumps in 2021–22: asphalt rose about 48%, iron and steel roughly 42%, and concrete about 10%. Reid said those materials are heavily used in AOT projects and disproportionately drive cost…
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