Meeting_Body
CONSTRUCTION COMMITTEE
SEPTEMBER 17, 2015
Subject/Action
SUBJECT: LOS ANGELES CONSTRUCTION MARKET ANALYSIS UDPATE
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the Los Angeles Construction Market Analysis Update August 2015 report.
Issue
ISSUE
To better understand the factors influencing construction bid prices and Metro's ability to deliver the Measure R and other projects within the existing budgets, a construction market analysis was performed in 2013. A study was recently conducted to update the initial construction market analysis to today's current conditions to identify factors influencing bid prices and develop mitigation strategies (see Attachment A).
Discussion
DISCUSSION
Scope of the Analysis
The construction market analysis primary objectives were to gather information to evaluate the international/national/regional/local economy as it relates to construction cost and bidding trends, the current and future amount of construction activities in the region and measure its impact on the proposed work in the region, the macroeconomic employment trends and skilled labor availability, the current trends in bid prices versus engineer's estimates, the number of bidders in the region, and gather feedback from contractors in regards to Metro specific contracts, processes, and procedures that may influence construction bid prices.
The desired outcome of the study is to continue our understanding of the factors influencing construction costs in the Los Angeles market, develop pricing projections for future forecasts, and determine potential solutions to mitigate rising bid prices to better ensure our ability to deliver the Measure R and other projects within existing project budgets. Because the majority of the Metro bids received in the current survey period come in under engineer's estimates, the focus of this update is to investigate possible trends for 2015 to 2018 and develop risk mitigat...
Click here for full text