LICA Releases ARTBA Contract Award Study
FOR IMMEDIATE RELEASE: 9/9/2019
CONTACT: Thomas Meara (718) 309-3506
LI LOCAL GOVERNMENTS ASSIST CONTRACTOR INDUSTRY IN FORMULATING FIRST- OF-ITS-KIND REPORT DETAILING HIGHWAY, ROAD & BRIDGE SPENDING ON LONG ISLAND
Report Analyzes Detailed information on Contract Awards for 62 Projects
Finds Type of Contract and Number of Bidders Can Impact Materials and Project Pricing
Local Investment Drives Recent Average of $271M Annually in Construction Spending With State Spending Set to Decrease, Smart Local Investment More Important Than Ever
Long Island, NY – The Long Island Contractors’ Association (LICA) and The American Road & Transportation Builders Association (ARTBA) released a first-of-its-kind, comprehensive report which detailed the construction spending for 62 projects in five local Long Island areas and measured the economic impact. This report was developed through the cooperation and support of five Long Island municipalities interested in reviewing past spending practices.
The report details the Long Island local highway and bridge market, local highway projects, asphalt demand and specifications, as well as the local economic impact based on contract type. It also highlights facts and figures regarding the construction market on Long Island. Between 2014 and 2017, local government spending on roads, bridges and highways has averaged $271M, accounting for 65% of all spending in the region. A decrease in state spending is expected to drop from a 2018 high of $274M to $158M in 2019 and $109M in 2020. This means local transportation investment is more critical than ever to support this market.
The report also fleshes out the three types of contracts that are awarded on Long Island. Specific projects based on delivery of a set of improvements to a road or bridge have 35 projects valued at $78.6M; bundled projects including identifiable road repair work were awarded for $55M with15 projects; open-ended contracts, which last an average of 595 days, had 12 projects valued at nearly $29.3M. Depending on the type of contract, changes in the material price of items such as asphalt can swing nearly 10%.
“This detailed report is the first of its kind covering the economic impact of construction projects on Long Island,” said Marc Herbst, Executive Director of the Long Island Contractors’ Association. “Now is the time to dedicate state funds to ensure Long Islanders get the bridge, street and road improvements they deserve, which also support high quality, good paying jobs.
Long Island and its residents make up a critical part of the New York economy and population we need our infrastructure to reflect that. From our findings, it is clear that the type of contract chosen can have important ramifications for municipalities in both overall project and material costs, ultimately affecting how effectively taxpayer dollars are spent in their communities.”
Dr. Alison Premo Black, author of the report said: “Over the years we have done dozens of studies at ARTBA on the importance of state funding. This report was an opportunity to take a deep dive into local investment, which plays a critical role in supporting highway, street and bridge construction in Long Island.”
ARTBA and LICA are appreciative of the chief executive officers of the municipalities who participated in this study. Herbst added, “These leaders were interested in reviewing the past practices employed in their respective governments before they assumed office. The results will assist them in responsibly setting management goals and procedures for their current administrations.”
"This comprehensive report will provide my office and stakeholders on Long Island with helpful information on the costs of improving our roads and infrastructure," said State Comptroller Thomas P. DiNapoli. "I thank the Long Island Contractors' Association and the American Road & Transportation Builders Association for giving us a tool to better understand how important the role of local transportation investment is and how it impacts future spending on projects.
Nassau County Executive Laura Curran said: “I would like to thank the Long Island Contractors’ Association and the American Road & Transportation Builders Association for this review of infrastructure spending on Long Island. Continued investment in our vast roadway network and bridge infrastructure is critically important to Nassau County. My staff will carefully review this report and consider its findings as we plan and implement future roadway and bridge work.”
“We would like to thank the Long Island Contractors’ Association for conducting this valuable study that will help the Town achieve the best bang for its buck on repaving our roads,” said Hempstead Town Supervisor Laura Gillen. “With approximately 1,200 miles of roadway, we are constantly looking for more cost-effective, taxpayer-friendly ways to stretch our resources in order to maximize local road repairs and resurfacing projects. The results of this study will undoubtedly help America’s largest township repave more miles of roadway and serve countless more residents without burdening taxpayers.”
“The Town of Islip welcomes this analysis by LICA and ARTBA, which provides another tool to help us save taxpayer dollars. The safety of our roads and bridges is a top priority in Islip,” said Islip Supervisor Angie Carpenter.
Oyster Bay Town Supervisor Joseph Saladino states: “The Town of Oyster Bay recognizes its responsibility for safe roads and infrastructure. That’s why my administration increased road resurfacing funds by $22 million, in addition to funding other projects requested by our residents. Together, we are getting the job done and I thank the Long Island Contractors’ Association for their report.”
Smithtown Supervisor Ed Wehrheim said, "The Town of Smithtown is always looking for ways to become more efficient in improving our services to the taxpayer. We are extremely grateful to LICA and ARTBA for providing this unique tool, that will serve as a roadmap; paving our way towards safer roads and modern infrastructure."
Copies of the report are available upon request.
###
About LICA: As the voice of Long Island's Highway and Infrastructure Professionals, LICA represents Long Island's premier heavy construction general contractors, subcontractors, suppliers and industry supporters. Focused primarily in the infrastructure construction industry, such as highways, bridges, sewers, parks, other public works and private site development, LICA's member companies play a significant role in sustaining the region's quality of life and economic engine that is Nassau and Suffolk Counties.
About ARTBA: The Washington, D.C.-based American Road & Transportation Builders Association (ARTBA) is a non-partisan federation whose primary goal is to aggressively grow and protect transportation infrastructure investment to meet the public and business demand for safe and efficient travel.
