WSDOT opened bids for the State Route 305 widening project June 7 and was disappointed to receive only two bids - both higher than the engineer's estimate of $11.4 million. WSDOT credits the nationwide escalation of construction costs as the primary factor for the high bids.
WSDOT worked closely with the Office of Financial Management (OFM) as well as the Governor's office this week to identify where and why the overruns occurred, what the options were for proceeding with or delaying the project, and how to obtain the additional funding needed to carry the project forward as planned this summer.
After careful review of the project, WSDOT and TIB identified funding and agreed it was in the best interest of the community to proceed with the project as planned. TIB increased its original $3.5 million grant to the City of Poulsbo by $1 million and WSDOT is providing the remaining funds through cost-savings on a previously-completed project and utilizing safety and paving funds planned to be assigned to projects next biennium.
Preconstruction Engineering (design, contract administration, environmental assessment, and mitigation)
The budgeted amount for preconstruction was $3.5 million. As of mid June 2006, funds expended for this phase $4.461 million, an overrun of $961,000. Examples of challenging aspects to restart the planning process include changes in the local area and new approaches to the project's environmental requirements. These issues added cost, time and effort to the project delivery effort.
Right of Way/Real Estate Acquisition
The 2006 Transportation Budget sets the legislative expectation for the right of way $4.300 million. The actual right of way costs for the project are currently estimated $885,000 under expectations. The reduction is due mainly to acreage reduction needed stormwater treatment.
Other cost savings included the city of Poulsbo’s real estate donation for the wetland mitigation site and stream realignment.
"We are pleased to have not only the support of the Transportation Improvement Board, but from the Governor's office as well," said Paula Hammond, WSDOT Chief of Staff. "It reinforces the significance of this long-planned project and the importance of grappling with the high cost of inflation we are experiencing."
Hammond said other options -- re-advertising the contract or deferring the project -- were not cost-effective or beneficial to the public.