Construction Expert On Stimulus Funds Part 7

In Five Points the Government MUST Consider Before Doling Out Billions to the Construction Industry construction expert Barry LePatner has this to say:

Enact reforms to help us avoid another Big Dig.  For those who don't know, the Big Dig is the most expensive highway project ever. Its original budget, set back in 1985, was just over $2 billion. It was revealed last year that the real cost of the project will reach $22 billion with a pay-off set for 2038. According to a recent Boston Globe article, the Big Dig has dealt a considerable financial blow to the state of Massachusetts. The article states, "Big Dig payments have already sucked maintenance and repair money away from deteriorating roads and bridges across the state, forcing the state to float more highway bonds and to go even deeper into the hole [...] Massachusetts spends a higher percentage of its highway budget on debt than any other state."

"The Big Dig epitomizes everything that is wrong with the construction industry, which is rife with cost overruns and missed schedules," says LePatner. "Going forward, as infrastructure projects proceed with only limited funding, our nation cannot afford to face cost overruns of 20 percent, 30 percent, or more. There are no available funds to finish projects facing contractor overruns due to the industry's inefficiencies. The industry itself will have to be reformed before we can start making progress on repairing the nation's infrastructure."