WSP01429

• File Number: 8543
• Description: Closed Basin Division
• State: CO
• Basin: Rio Grande
• Water Division: 3
• Date: 3/21/1985
• Title: BuRec Costs Edge Higher Again
• Water Supply Pro - Doc Type: News Article/Press Release

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BuRec costs edge higher again

f '. fter showing signs of stabiliz-
ing this fall, construction cost
escalatIon for federal water and
power projects edged higher this
wimer. But the 0.6% increase was
minimal, according to the Bureau
of Reclamation's (BuRec) compos-
ite index for the quarter ending
Jan. I, 1985. Still, the ul'turn, kept
slight by st rang competition, com-
bined with rismg costs last sum-
mer to lift BuRec's annual index
2% above 1983's comparable fig-
ure following only a 1.3% in-
crease the prior year.
Contracts up for bid in the lat-
est quarter were less than half the
number in the prior three months,
keeping bidding mterest strong. Five
contracts, estimated by BuRec engineers
to cost $94.6 million, attracted an aver-
age of 9.8 companies per letting com-
pared with only 8.3 firms in the prior
quarter.
Inching up. While bid prices for many
of the major BuRec construction items
remained steady in the fourth quarter,
the majority edged higher, but less than
1 %. except for steel-tower transmission
lines, which posted a 1.2% quarterly in-
crease. BuRec's composite index for
earth-dam projects remained at a stand~
still during the last quarter, leaving
costs at 1983 levels. Diversion dam costs
edged 0.6% higher, boosting average
costs 2% above last year's leveL In con-
trast, concrete dam costs moved' lower
by the same percent, leaving costs only
slightly higher than a year ago (see
table).
Pumping plant building and equip-
ment costs, after rising for two consecu-
tive quarters, leveled off in the last
quarter. But increases in the first six
months of last year were enough to
leave annual cost increases among the
highest of any BuRec construction
items. Accessory electrical equipment
and reinforced concrete contributed the
most to the upturn, posting annual in-
creases of 2.5 and 2.7%, respectively.
This follows a cost rise of almost 2%
the prior year.
Same story. Hydroelectric power
plant cost trends followed a similar pat-
tern this past year. After inching higher
this summer and fall, overall costs flat-
tened out late last year. However, costs

FIRST QUARTERLY COST ROUNDUP

for turbines, generators, electrical
equipment and reinforced concrete
structures continued to edge up, leaving
composite plant costs almost 2% above
the year before.
Transmission line costs reversed
1983's rapid increase, particularly for

wood-pole transmISSIon lines. Af-
ter a 3.5% rise dUling 1983,
wood-pole costs climbed only
1.4% last year with the help of a
drop in costs late in 1984. Steel-
tower transmission lines took the
opposite tack, posting a 3.1 % cost
rise in 1984 following a less than
2% increase the year before.
The coni inued strong contrac-
tor interesL for fewer water and
power projects helped spark low
bids well below the estimate for all
types of projects. For example, the
largest contract awarded by BuRec
in the fourth quarter was for a
Brantley, N.M., earth and concrete
dam estimated by BuRec to cost $60.2
million. The project attractred 16 com-
panies to the bid table, with the average
of the three low bids close to 10% be.
low the engineering estimate. The low
bid, at $44.8 million, beat the estimate
by 21%. .

Water and power construction costs
January % chg. % chg.
10/84 1/84
1979 1980 1981 1982 1983 1984 1985 1185 1/85
COMPOSITE INDEX ........................... 1.12 1.24 1.37 1.48 1.51 1.53 1.56 +0.6 +2.0
DAMS: Earth ........,............................... 1.09 1.23 1.37 1.46 1.41 1.39 1.39 0 0
Structures .................................... 1.06 1.19 1.32 1.41 1.35 1.31 1.29 0 -1.5
Spillway........................................ 1.11 1.28 1.43 1.51 1.46 1.44 1.45 0 +0.7
Oulletworks................................ 1.12 1.28 1.41 1.51 1.51 1.53 1.55 0 +1.3
Concrete ........................................" 1.12 1.28 1.42 1.53 1.53 1.54 1.55 -0.6 +0.6
Diversion .......................................... 1.12 1.25 1.37 1.49 1.51 1.53 1.56 +0.6 +2.0
PUMPING PLANTS
Building & equipment .................... 1.13 1.24 1.36 1.48 1.51 1.54 1.57 0 +1.9
Structure, rein conc & improv 1.12 1.26 1.38 1.47 1.48 1.40 1.52 +0.7 +2.7
Equipment .................................... 1.13 1.22 1.35 1.50 1.56 1.60 1.64 +0.6 +2.5
pumps & prime equip ............ 1.13 1.23 1.37 1.52 1.57 1.61 1.64 +0.6 +1.9
acc~ssory elec & mlsc equip 1.11 1.21 1.32 1.46 1.55 1.61 1.65 +0.6 +2.5
STEEL PENSTOCKS,
DISCHARGE PIPES ........................ 1.14 1.24 1.37 1.52 1.58 1.61 1.63 +0.6 +1.2
CANALS ............................................... 1.10 1.23 1.37 1.47 1.44 1.44 1.47 +0.7 +2.1
Earthwork ........................................ 1.09 1.22 1.38 1.47 1.43 1.43 1.46 +0.7 +2.1
Structures ........................................ 1.12 1.25 1.37 1.46 1.48 1.49 1.51 0 +1.3
CONDUITS (tunnels, conc-lIned) 1.13 1.25 1.38 1.51 1.58 1.61 1.64 +0.6 +1.9
LATERALS & DRAINS ....................... 1.09 1.22 1.35 1.45 1.43 1.43 1.46 +0.7 +2.1
Earthwork ........................................ 1.07 1.20 1.33 1.44 1.41 1.41 1.44 +0.7 +2.1
Structures ........................................ 1.10 1.23 1.36 1.45 1.45 1.45 1.47 0 +1.4
POWER PLANTS, HYDRO
Building & equip ............................. 1.11 1.22 1.38 1.51 1.55 1.57 1.60 0 +1.9
Structure, rein, cone & Improv 1.12 1.25 1.38 1.47 1.48 1.49 1.52 +0.7 +2.0
Equipment ...........,....:...................... 1.10 1.20 1.38 1.52 1.58 1.61 1.64 0 +1.9
turbines & generators ;.............. 1.10 1.20 1.39 1.64 1.60 1.63 1.88 +0.6 +1.8
accessory elec & mlsc equip 1.12 1.21 1.32 1.45 1.51 1.58 1.59 +0.6 +1.9
PIPELINE, conc .................................. 1.13 1.25 1.41 1.60 1.54 1.57 1.59 0 +1.3
PIPE DISTRIBUTION SYSTEMS ....... 1.13 1.24 1.39 1.48 1.52 1.55 1.57 0 +1.3
SWITCHYARDS & SUBSTATIONS ... 1.12 1.23 1.35 1.46 1.52 1.64 1.56 0 +1.3
TRANSMISSION LINES
Wood poles, 115 kv ....................... 1.16 1.29 1.36 1.42 1.41 1.46 1.48 -0.7 +1.4
poles & fixtures ..",.....,............... 1.19 1.32 1.30 1.32 1.29 1.36 1.$ -0.7 0
conductors, devices .................. 1.14 1.25 1.42 1.55 1.57 1.59 1.64 0 +3.1
Steel tower, 230 kv ........................ 1.15 1.28 1.40 1.64 1.62 1.83 1.88 +1.2 +3.1
GENERAL PROPERTY-BUILDINGS 1.15 1.27 1.33 1.44 1.49 1.55 1.58 0 +1.9
ROADS, primary ................................. 1.15 1.31 1.46 1.52 1.53 1.55 1.57 +0.6 +1.3
Secondary ....................................... 1.17 1.37 1.60 1.62 1.60 1.60 1.62 +0.6 +1.3
BRIDGES, steel.......,........................... 1.13 1.26 1.40 1.50 1.64 1.54 1.58 +0.6 +2.6
Source: Bureau of Reclamation, Denver, Colo. Base: 1977 = 1.00
'Project cost to federal government of water and power projects in 17 western states.

ENR/March 21, 1985

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