Inflation is expected to take a hit on roadway projects in Louisiana. That word comes from DOTD Transportation Secretary Shawn Wilson who says two projects have already been rejected, including plans to repair I-20 through Bossier City because the projected price tag has increased nearly 50 percent.
“We are seeing significant increases in certain types of bids related to both materials costs, but also to shipping of goods because of a shortage of drivers, both of these a by-product of the COVID pandemic,” said Wilson.
No decision has been made on when the project might be re-bid. Wilson says similar pricing scenarios are expected to play out in the near future leading to a potential change in plans to widen I-10 and construction of a new Mississippi River bridge.
“It does give us some concern that over the next two years we’re going to see similar pricing regimes come in and as a result have less work to be done during this unprecedented time of investment,” said Wilson.
Wilson says as DOTD moves forward with improving the state’s roadway infrastructure, there will have to be give-and-take on considering the bids submitted and the overall projects themselves.
“We’re going to look at rescoping projects that we may not be able to let. We’re going to look at modifying bids in terms of materials the best we can and, in some cases, we’re going to have to accept these larger bids,” said Wilson.
Wilson says the primary factors driving costs up are labor and raw materials and he expects the situation to become more difficult moving forward.
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