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Inflation impacting road construction and causing delays for city projects

According to INDOT construction costs are up 36%
Construction and Inflation.png
Posted at 6:00 PM, Oct 04, 2022

INDIANAPOLIS — Inflation is causing road construction projects being performed by INDOT and the city to cost more money.

The city of Indianapolis says that some projects will be delayed but INDOT says projects — like the north split — are still on time. The biggest issue facing both entities is finding supplies.

Not only is cost a factor, but the supply chain is also creating issues for contractors finishing road work.

"When you go out to get groceries and you know what you're looking for may not be there we are seeing a similar thing in construction," Natalie Garrett with INDOT said. "Just the lead time getting some of these supplies in addition to the cost has been a challenge. "

We asked INDOT about specific projects and where they stand, their response can be seen in the table below.

ProjectExpected completion date
North SplitINDOT said it is working to open the split by the end of 2022 but is dependent on a number of factors including weather, supply chain and workforce.
I-70 in Hancock CountyThe project is progressing on-time and is scheduled to be completed in 2024.
I-69 Finish Line (Martinsville to Indianapolis corridor)The project is on schedule and expected to open in late-2024. Overall, the project is on-schedule and more than 50% complete.

INDOT says their projects are on time. The City of Indianapolis says there have already been delays and more can be expected in the future.

"The Broad Ripple Ave. project just had its first road closure just a couple of weeks ago," Dan Parker the Chief Deputy Mayor of Indianapolis said. "That was supposed to begin back in the spring but the utility work took longer and that was because of a lack of materials to do their work. "

While supply chain issues are part of the problem, the tight labor market is also causing issues for the city.

"A lot of the construction companies don't have the capacity so when they bid on projects they are kind of building in that kind of are we going to have a short supply of labor," Parker said.

The city says that prices are starting to stabilize and that bids for projects are starting to come in closer to projected estimates. DPW and INDOT say concrete is one of the toughest materials to come by for the time being. For a breakdown of the inflation issues facing INDOT click here.