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Why America overpays for bridges, highways, transit, and other transportation infrastructure
American Thinker ^ | 03/12/2014 | Thomas Lifson

Posted on 03/12/2014 7:13:19 AM PDT by SeekAndFind

American taxpayers are getting a terrible deal when it comes to large government-sponsored infrastructure projects. We pay 2 or 3 times as much for them as we should in many cases. The result is that we are put to shame by many other nations when it comes to building the highways and other transportation facilities we need to remain competitive.

Consider bridges, for example. Compare the Millau Viaduct in France, a one and a half mile long cable stay bridge over the Tarn River Valley in France, completed in 2004 at a cost about $483 million dollars (at the 2004 dollar/euro exchange rate),

with the 2.2 mile long Eastern Span of the San Francisco Bay Bridge, completed in 2013 at a cost of $6.4 billion dollars.

Even allowing for inflation, for the fact that the Bay Bridge is more than twice as wide and constructed over water, the cost comparison is starling.

Ryan Cooper, writing in The Week, explains at least a good part of the bad bargain we are getting. In sum, there are three main factors he finds:

1. Expensive labor. From the top brass at New York's Metropolitan Transportation Authority: "The MTA is required to overstaff projects so that the same [tunnel boring machine] work, for instance, that can be done in Spain with nine workers must be done in [New York City] with 25 workers."

2. Out-of-control private contractors. From Stephen Smith at Bloomberg: "Agencies can't keep their private contractors in check. Starved of funds and expertise for in-house planning, officials contract out the project management and early design concepts to private companies that have little incentive to keep costs down and quality up."


(Excerpt) Read more at americanthinker.com ...


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events
KEYWORDS: bridges; infrastructure; transportation
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1 posted on 03/12/2014 7:13:19 AM PDT by SeekAndFind
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To: SeekAndFind

Unions........................


2 posted on 03/12/2014 7:15:18 AM PDT by Red Badger (LIberal is an oxymoron......................)
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To: SeekAndFind

They get paid well because they are so efficient. Thats why you never see anyone working in construction zones.


3 posted on 03/12/2014 7:18:15 AM PDT by driftdiver (I could eat it raw, but why do that when I have a fire.)
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To: SeekAndFind

Just look at the Mackinaw bridge and the astounding speed at which it was built at a low cost. Today it would take decades and cost upward of $25 billion dollars.

On the other hand, Canada wants to build a bridge across the Detroit river and pay for it and Obama won’t release the funds for us to prepare our side of the river.


4 posted on 03/12/2014 7:19:23 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: SeekAndFind
It's a no-brainer why we don't get our money's worth: union contracts and union labor. To compound the problem, unions support the politicians who award them more construction contracts in a never-ending cycle.

It's a shame when we hear politicians claim that we "need to invest in infrastructure." We fund hundreds of billions in taxes which are supposed to go toward infrastructure projects, but that revenue is diverted to pay for other government programs.

5 posted on 03/12/2014 7:19:24 AM PDT by Lou L (Health "insurance" is NOT the same as health "care")
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To: SeekAndFind

Maybe the fact that our highway projects are forced to use the most expensive, least productive segment of the labor market is why we don’t really get the bang for the buck.


6 posted on 03/12/2014 7:20:11 AM PDT by RS_Rider (I hate Illinois Nazis)
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To: Red Badger

and lawsuits, environmental impact studies.....


7 posted on 03/12/2014 7:20:12 AM PDT by cripplecreek (REMEMBER THE RIVER RAISIN!)
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To: Red Badger
Unions........................

Certainly...and a corrupt and venal polity!

8 posted on 03/12/2014 7:21:27 AM PDT by pgkdan
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To: Red Badger

and M/WBE.


9 posted on 03/12/2014 7:27:16 AM PDT by maggief
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To: SeekAndFind

Kickbacks.


10 posted on 03/12/2014 7:29:52 AM PDT by Moonman62 (The US has become a government with a country, rather than a country with a government.)
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To: SeekAndFind

Uh, Government corruption and unions?


11 posted on 03/12/2014 7:31:36 AM PDT by Jack of all Trades (Hold your face to the light, even though for the moment you do not see.)
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To: SeekAndFind

Seem to recall that after the ‘last’ huge CA earthquake that a couple of bridges and elevated roadways in Oakland/SF area were done on an all out push, with bonuses for early completion, no interference from ‘officials’. The company(s) were allowed to proceed with the work, came in way under budget and long before the projected completion date.

Reminds me back in the ‘asbestos days’. “They” drove up the prices so bad that the asbestos removal was costing MORE than the rest of the demolition AND constructing the NEW building.
Once people ‘caught on’, asbestos removal was ‘important’ but not pivotal etc..

Of course people are also to blame.
“they” would rather sit in traffic with periodic lane closures rather than shut down the entire highway and do the job in a smidgeon of the time.

Believe CT had (many still does) laws that said they were allowed to shut down highways for construction at their will. I used to see signs addressing that the ‘highway officially closed due to construction etc’.....

Of course it makes more sense to ‘bleed’ the job out, squeezing every possible dime, rather than get to it and finish it.


12 posted on 03/12/2014 7:33:03 AM PDT by xrmusn (6/98 --"I would agree with you BUT that would make both of us wrong".)
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To: xrmusn

(many still does) = = = =
(MAYBE).....

OOPS....


13 posted on 03/12/2014 7:35:24 AM PDT by xrmusn (6/98 --"I would agree with you BUT that would make both of us wrong".)
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To: maggief

“and M/WBE.”

When we order office supplies, the vendor indicates which suppliers are “preferred” businesses. Since their prices are higher (because of reduced efficiency/competence, I guess), I steer clear of them; if they were competitively priced, I’d probably still steer clear of them because the concept disgusts me.

I’m glad those companies are pointed out for me...


14 posted on 03/12/2014 7:35:53 AM PDT by kearnyirish2 (Affirmative action is economic war against white males (and therefore white families).)
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To: SeekAndFind
Consider bridges, for example. Compare the Millau Viaduct in France, a one and a half mile long cable stay bridge over the Tarn River Valley in France, completed in 2004 at a cost about $483 million dollars (at the 2004 dollar/euro exchange rate),

Just the bribes necessary to get something like this started here would cost more than that! The actual building and associated waste would triple it.

15 posted on 03/12/2014 7:38:31 AM PDT by Don Corleone ("Oil the gun..eat the cannoli. Take it to the Mattress.")
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To: SeekAndFind

Why do companies overcharge the government for bridges, roads, and insfrastructure? Because they can. And nobody is held responsible.


16 posted on 03/12/2014 7:39:05 AM PDT by DoodleDawg
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To: SeekAndFind

The new Bay Bridge section in San Fran was prefabricated in China.

Maybe we need a Walmart Bridge Store?


17 posted on 03/12/2014 7:43:03 AM PDT by Buckeye McFrog
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To: SeekAndFind

In my town, a reasonably engineered project like a new traffic light might cost $100k. If the township applies for federal and state subsidies, they have to prove the project is “properly engineered” — which means they must spend $1m. Now they get 80% subsidy from the feds, and 15% subsidy from the state — the project only costs them $50k.

The cost and scale of very transportation project in the country is being inflated by a factor of ten by this same mechanism.


18 posted on 03/12/2014 7:43:42 AM PDT by Born to Conserve
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To: SeekAndFind

Cronyism, not labor unions.


19 posted on 03/12/2014 7:43:47 AM PDT by babble-on
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To: kearnyirish2

See also M/WBE joint ventures. What a scam.


20 posted on 03/12/2014 7:44:37 AM PDT by maggief
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