ABSTRACT

The various state departments of transportation within the United States are experiencing high construction cost growth due to increased commodities’ price (FHWA 2007). The increase in cost growth results from multiple factors. While some of these factors can be controlled, there are factors that are beyond the control of the construction managers. For instance, the increase in commodities and fuel prices is outside the range of control of the construction managers. However, the construction manager can control change orders, schedule delays etc. The cost growth in the projects not only impacts the ability to deliver more projects, but also affect the morale of the construction workers, contractors, and owners.