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MDOT reports Q3 letting activity and contract finalization data; some large projects drive higher final-cost average

5521961 · August 1, 2025

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Summary

MDOT presented quarterly bid letting, procurement card and final contract reports. The department said it let 144 projects in the third quarter and that 50 MDOT projects were finalized in the quarter totaling about $432 million; a small number of large projects raised the average final cost to 3.01% over original contract values.

MDOT staff briefed the State Transportation Commission on Aug. 1 about third-quarter letting activity, procurement card transactions and final contract costs.

MDOT reported that it let 144 projects in the quarter (April–June 2025). Bureau and procurement staff summarized letting trends (single bidders, rejected bids) and identified procurement card activity for tracking. MDOT’s final-construction-contract summary showed that 50 MDOT projects were finalized in the quarter totaling approximately $432 million; two of those projects were more than 10% over the original contract amount and 25 projects came in under the original contract value. The calendar-averaged final cost for MDOT projects in 2025 was reported at 3.01% over original contract amounts—higher than MDOT’s typical historical average—driven primarily by a small number of very large projects that incurred multi-million-dollar overruns.

Local agency final projects for the same period included 103 projects finalized totaling about $116 million; seven local projects were more than 10% over original contract amounts and 63 came in under original contract amounts. Staff explained that some contract categories, such as fixed-price variable-scope projects, are designed to accept additional work within an existing contract if funding becomes available, and those adjustments can make the averages look higher without indicating systemic contractor performance problems.

Commissioners asked for details about specific over-budget projects and staff offered to provide a follow-up briefing explaining the large projects that drove the higher average final cost.