Meeting_Body
CONSTRUCTION COMMITTEE
SEPTEMBER 16, 2021
Subject
SUBJECT: 2021 LOS ANGELES CONSTRUCTION MARKET ANALYSIS
Action
ACTION: RECEIVE AND FILE
Heading
RECOMMENDATION
Title
RECEIVE AND FILE the report on 2021 Los Angeles Construction Market Analysis.
Issue
ISSUE
A construction market analysis was performed to better understand the factors influencing construction bid prices and Metro's ability to deliver the largest transportation construction program in the country. Current and future market conditions, along with the economic impacts of the COVID-19 pandemic, were assessed in the 2021 Los Angeles Construction Market Analysis to determine factors influencing construction bidding activities and our ability to deliver Metro's capital program, including projects approved as part of Measure M.
Background
BACKGROUND
Following the passage of Measure M, a construction market analysis was performed in 2018 to evaluate market conditions to determine factors influencing construction bidding activities and our ability to deliver Metro's capital program. As part of a bi-annual effort to continuously evaluate market conditions, a 2020 study was prepared. However, the 2020 Construction Market Analysis was finalized in March 2020 prior to the COVID-19 pandemic, which dramatically changed economic conditions locally and across the world. The 2021 Construction Market Analysis provides a comprehensive analysis and update of construction market factors and trends since the last report that was completed in March 2020 and presented to the Board in May 2020.
Discussion
DISCUSSION
The Construction Market Analysis objectives were to gather information to evaluate the national, regional, and local economies 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, and the macroeconomic employment trends and skilled labor availa...
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