LaHood says states should
use Recovery Act cost savings
Apr 20, 2009 12:55 PM
Transportation Secretary Ray LaHood has reminded the nation’s governors and state secretaries of transportation today that any money they save on transportation projects paid for with American Recovery and Reinvestment Act dollars should be used for additional transportation projects.
Across the country, reports are showing that contractor bids to build and repair transportation networks are coming in substantially below the original engineering estimates. In some cases, thanks to fierce competition for the work and the low price of petroleum, bids are 10, 20, and even 30 percent lower than expected.
In a letter, Secretary LaHood urged the governors and transportation secretaries to take those cost savings and use the money for additional projects that will put more people to work.
“We will work with you to ensure that your state benefits from your frugality,” LaHood wrote. “Savings you accrue from awarding low bids, and from reduced construction costs due to your oversight and project management, should remain in your state to be spent on other eligible transportation projects.”
In just seven weeks, the DOT has approved more than 2,400 requests worth $7.5 billion for highway, road, bridge, and airport construction and repairs nationwide. Projects have been approved in every state.
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