FHWA REPORTS ROAD CONSTRUCTION COSTS FOR FIRST QUARTER OF 1998 |
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Topics: Federal Highway Administration
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Federal Highway Administration
May 11, 1998
FOR IMMEDIATE RELEASE
Monday, May 11, 1998
Contacts: Karen Whitney, (202) 366-0660
Claretta Duren, (202) 366-4636
FHWA 18-98
The Federal Highway Administration (FHWA) today announced that highway construction costs decreased 13.5 percent in the first quarter of 1998 compared to the last quarter of 1997, and 10.5 percent compared to the first quarter a year ago.
The first quarter results lowered the FHWA's composite index for highway construction costs to 119.6 percent of the 1987 base index (1987 average costs equal 100 percent).
Decreases in the unit prices for portland cement concrete, bituminous concrete, structural steel and structural concrete reduced the index in the first quarter. There was an increase in the unit prices for common excavation and reinforcing steel.
The three-quarter moving composite price index for the fourth quarter of 1997 -- obtained by combining data for the last two quarters of 1997 with the first quarter of 1998 -- decreased 3.6 percent from the previous three-quarter average.
Trends in highway construction costs are measured by an index of average contract prices compiled from reports of state highway contract awards for federal-aid contracts greater than $500,000. Since the enactment of the Intermodal Surface Transportation Efficiency Act of 1991, the index reflects federal-aid contracts on the National Highway System.
The composite price indices during the past two years and the percentage changes from the preceding quarter have been as follows:
Quarter |
Year |
Quarterly Price Index |
Percentage Change |
Three-quarter Moving Index1 |
Percentage Change |
| 1st Quarter1 | 1996 1995 |
126.4 |
-- |
121.8 |
-- |
| 2nd Quarter | 1996 |
118.0 |
-6.6 |
121.3 |
-0.4 |
| 3rd Quarter | 1996 |
124.3 |
5.3 |
119.5 |
-1.5 |
| 4th Quarter | 1996 |
119.5 |
-3.9 |
125.6 |
5.1 |
| 1st Quarter | 1997 |
133.6 |
11.8 |
128.0 |
1.9 |
| 2nd Quarter | 1997 |
132.1 |
-1.1 |
129.3 |
1.0 |
| 3rd Quarter | 1997 |
122.3 |
-7.4 |
129.4 |
0.1 |
| 4th Quarter | 1997 |
138.2 |
13.0 |
124.7 |
-3.6 |
| 1st Quarter | 1998 |
119.6 |
-13.5 |
-- |
-- |
1 For the three-quarter moving index, these are the middle quarters of the three-quarter periods.
The price levels of the component items of the quarterly index in the 1st quarter of 1998, the previous quarter, and the same quarter a year ago, and the corresponding percentage changes, are shown in the following table:
Price
Index |
Percentage change this quarter (1st quarter, 1998) from: | ||||
| Component | 1st Quarter 1998 |
4th Quarter 1997 |
1st Quarter 1997 |
4th Quarter 1997 |
1st Quarter 1997 |
| Excavation | 123.1 |
102.7 |
111.3 |
19.9 |
10.6 |
| Portland cement concrete | 158.9 |
192.5 |
152.2 |
-17.5 |
4.4 |
| Bituminous concrete | 68.8 |
126.4 |
128.3 |
-45.6 |
-46.4 |
Composite surfacing |
98.4 |
148.1 |
136.2 |
-33.6 |
-27.8 |
| Reinforcing steel | 147.0 |
124.7 |
131.8 |
17.9 |
11.5 |
| Structural steel | 129.7 |
171.9 |
131.8 |
-24.5 |
-1.6 |
| Structural concrete | 139.4 |
131.9 |
144.2 |
5.7 |
-3.3 |
Composite structures |
138.2 |
141.2 |
138.8 |
-2.1 |
-0.4 |
| Composite price index | 119.6 |
138.2 |
133.6 |
-13.5 |
-10.5 |
The price levels of the current component items of the three-quarter moving index in the 4th quarter of 1997, the previous quarter, and the same quarter a year ago, and the corresponding percentage changes, are shown in the following table:
Three-Quarter Moving Price Index 1987 = 100 |
Percentage Change This Quarter (4th Quarter 1997) from: |
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| Component | 4th Quarter 1997 |
3rd Quarter 1997 |
4th Quarter 1996 |
3rd Quarter 1997 |
4th Quarter 1996 |
| Excavation | 116.2 |
120.4 |
117.5 |
-3.5 |
-1.1 |
| Portland cement concrete | 166.4 |
167.4 |
144.5 |
-0.6 |
15.2 |
| Bituminous concrete | 95.6 |
116.2 |
118.5 |
-17.7 |
-19.3 |
Composite surfacing |
118.8 |
132.9 |
127.0 |
-10.6 |
-6.5 |
| Reinforcing steel | 132.9 |
126.9 |
126.5 |
4.7 |
5.1 |
| Structural steel | 136.3 |
135.4 |
126.3 |
0.7 |
7.9 |
| Structural concrete | 131.5 |
126.9 |
127.4 |
3.6 |
3.2 |
Composite structures |
133.0 |
129.2 |
126.9 |
2.9 |
4.8 |
| Composite price index | 124.7 |
129.4 |
122.9 |
-3.6 |
1.5 |
The U.S. average contract unit prices for the index items during the various periods shown are:
Individual Quarters |
Three-Quarters | ||||
| Component | Unit |
4th Quarter 1997 |
1st Quarter 1998 |
3rd Quarter 19971 |
4th Quarter 19972 |
| Excavation | Cubic yard | $2.49 |
$2.99 |
$2.92 |
$2.82 |
| Portland cement concrete | Square yard3 | 28.35 |
23.42 |
24.58 |
24.51 |
| Bituminous concrete | Ton | 31.14 |
16.95 |
28.63 |
23.56 |
| Reinforcing steel | Pound | 0.549 |
0.648 |
0.559 |
0.586 |
| Structural steel | Pound | 1.521 |
1.148 |
1.199 |
1.207 |
| Structural concrete | Cubic yard | 317.61 |
335.78 |
305.82 |
316.75 |
1 Weighted average unit prices for the last three quarters of 1997.
2 Weighted average unit prices for the last two quarters of 1997 and the first quarter of 1998.
3 Prices for Portland cement concrete surfacing reflect adjustments to a standard 9-inch thickness and do not include costs for reinforcing steel and joints.