Keep WV Moving

 
Low bids in a down economy could mean more highway projects from federal stimulus money than initially estimated, a West Virginia transportation official and contractors group say. "For the most part we're on the positive side, which really means more projects," West Virginia Division of Highways spokesman Brent Walker said. "It's just a little early to see what projects and net effect."
 
West Virginia received about $210.8 million in federal stimulus money from the American Recovery and Reinvestment Act of 2009. About 112 projects in the state have been authorized for that funding, Walker said. "We've had several projects come in under our estimates," Walker said. "As we are able we will add projects to that 112.<!p>.<!p>.We just want to be very diligent, as we have been, with these funds."
 
While some projects have been over cost estimates, more are coming in lower than expected, he said. "It's a function of the economy, and you're just seeing some very competitive pricing," Walker said. "You're seeing that across the country."
 
"Companies want to make sure they're preserving their workers," Walker said.
 
It would be premature for the DOH to guess how many more projects could be funded through the $210.8 million because of savings seen from "actuals versus estimates," Walker said. "You can expect additional projects," Walker said. "We just don't know how many at this time."
 
The Contractors Association of West Virginia has reported seeing bids for stimulus projects coming in about 15 percent under estimates, said the group's executive director, Mike Clowser. Based on that figure, Clowser estimated there could be about $30 million more worth of projects than expected from the total $210.8 million and that the DOH could possibly increase total stimulus projects to 125 or 130.
 
"It's just a guess," Clowser said. "The bottom line is there will be about $30 million more available because contractors are bidding so competitively today," Clowser said. "The reason they're bidding competitively today is the market in highways construction is just down."
 
A sample of national highways projects showed average costs of about 16 percent lower than estimated, according to a USA Today report last month that cited data from the private firm Onvia.
 
Stimulus funding for highways projects has done more to save jobs than create them, particularly with the current downturn of the state's regular highway program, Clowser said.
 
"The stimulus program has basically just taken the place of our normal highway program," Clowser said. "So from the positive aspects of the stimulus program it has saved jobs within West Virginia's construction industry."
 
From January through the end of August this year, West Virginia's highways program has put out for contract 142 regular, non-stimulus projects totaling about $153 million in low bids submitted, Clowser said. That is less than half of the projects and funding during the same period in 2008, where the DOH had awarded 357 projects totaling $413 million, Clowser said.
 
"Some of the stimulus has taken up the slack for some of the downturn in the regular highway program," Clowser said.
 
About 87 stimulus projects were expected to have been put out for bid by next week, Walker said. Clowser's figure was closer to 88 projects, which he said total about $132 million in low bids.
 
Still, some asphalt paving company members were out of work in August, Clowser said, adding that normally from June through October, "asphalt companies and employees are just working day and night to get completed before bad weather." About 36,400 West Virginians were working in the construction industry in July 2009, down from 40,300 working in July 2008, according to WorkForce West Virginia labor information. 
 
"That kind of gives you some indication of what is transpiring in the construction industry today," Clowser said.
 
Highway revenues, which come from the gas tax, have been flat, Walker said, adding that if that trend continues that could mean less money for paving, maintenance, mowing and possibly snow removal and ice control.
 
Clowser also was concerned about stagnant revenues in the DOH. "It's going to very soon affect the quality of highways and probably the quality of the transportation system in the state of West Virginia," Clowser said.
 
Meanwhile, the DOH has one year to authorize stimulus highway projects and three years to complete them, Walker said. "Any additional projects, it's really our intention to keep those within the congressional districts where the savings were realized," Walker said. "We're still trying to make sure we keep everything equitable."
 
While there is some new road construction planned, the DOH is focusing most of the stimulus dollars on preserving, maintaining and enhancing the existing highways system, which means a lot of paving, bridge cleaning, painting and some bridge replacements, Walker said.
 
Projects authorized for stimulus money have to be "shovel-ready," Walker said, which means ready to start within 90 days. "We're going to stay true to what we were asked to do," Walker said. "There are still projects that fall under the category of shovel-ready."