So now that the winter is over and many local units are planning to spend precious resources on fixing roads, the realities of basic economic principles are going to come into play and cost us even more.
There are only so many road contractors and asphalt plants—and the abundance of major road projects are going to put a damper on unplanned but direly needed repairs.
Here’s why: remember that economics 101 class? When the demand curve shifts to the right and supply is fixed, price goes up.
We suspect that there will be at least a 20 percent increase in the cost of road projects based on this dynamic. Even on jobs that were previously quoted, unless a contract has been executed, those quotes will most likely not stand.
So it may be time to look at some best practices, which may be found in the Munetrix Government Collaboration & Best Practices database. [Read more…] about Sharing Information and Equipment Can Reduce Local Cost Burdens