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FHWA Reports Road Construction Costs for Q2 of 1998

10 August 1998

FHWA REPORTS ROAD
CONSTRUCTION COSTS FOR
SECOND QUARTER OF 1998

        The Federal Highway Administration (FHWA) Thursday announced that
highway construction costs increased 3.8 percent in the second quarter
of 1998, and decreased 5.98 percent compared to the second quarter a year ago.

        The second quarter results raised the FHWA's composite index for
highway construction costs to 124.2 percent of the 1987 base index (1987
average costs equal 100 percent).

        A large increase in the unit price for bituminous concrete raised
the index in the second quarter.  There were decreases in the unit prices
for portland cement concrete, common excavation, structural concrete,
structural steel and reinforcing steel.

        The three-quarter moving composite price index for the first
quarter of 1998 -- obtained by combining data for the last quarter of
1997 with the first two quarters of 1998 -- decreased 0.5 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.

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        Charts with specific cost information are available at
                http://www.dot.gov/affairs/fhwa3298.htm

        Visit the DOT Public Affairs Web Site at:
                http://www.dot.gov/briefing.htm