Develop an Improved SDDOT Construction Cost Index

A highway construction cost index (HCCI) is an indicator of the purchasing power of a highway agency. Highway agencies can monitor their construction market conditions using HCCIs to make various financial planning decisions. The main goal of this study is to modernize the HCCI system of South Dakota DOT by developing an enhanced HCCI calculation and forecasting methodologies and a software program by incorporating recent guidance from the Federal Highway Administration and adopting advanced theories on HCCI calculation. To achieve the goal, the study a) reviewed the current HCCI calculation methodology used by the agency, b) interviewed potential HCCI users from South Dakota, c) developed a proven multidimensional HCCI calculation methodology using the concept of the dynamic item basket, and d) developed two methods to forecast HCCIs, and e) developed a software program to automate the HCCI calculation and forecasting processes. In addition to the overall HCCI, more than a dozen sub-HCCIs were developed to show more granular market conditions across the state of South Dakota. The sub-HCCIs showed that specific construction market conditions, such as rural and urban market conditions, do not necessarily follow the trend of the overall statewide market condition. For HCCI forecasting, a linear regression model provided a better result than the weighted time series method. The methodologies and the software program developed for this research are expected to aid SDDOT in improving its ability to monitor the construction market trend closely and more accurately. The availability of more granular market conditions from sub-HCCIs are expected to increase the use of HCCIs at SDDOT.

• Record URL:
  • https://rosap.ntl.bts.gov/view/dot/67329
• Supplemental Notes:
  • Publication date on the cover page is February 2021.
• Corporate Authors:

  Texas A&M Transportation Institute

  College Station, TX  United States 

  South Dakota Department of Transportation

  700 East Broadway Avenue
  Pierre, SD  United States  57501

  Federal Highway Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Jeong, H David
  • Shrestha, K Joseph
  • Steadman, Maxwell
  • Kuzio, Jacqueline
• Publication Date: 2021-2-28

Language

• English

Media Info

• Media Type: Digital/other
• Edition: Final Report
• Features: Appendices; Figures; Maps; References; Tables;
• Pagination: 59p

Subject/Index Terms

• TRT Terms: Construction projects; Cost estimating; Forecasting; Markets; Road construction; Software packages
• Identifier Terms: South Dakota Department of Transportation; U.S. Federal Highway Administration
• Geographic Terms: South Dakota
• Subject Areas: Administration and Management; Construction; Finance; Highways; Planning and Forecasting;

Filing Info

• Accession Number: 01883474
• Record Type: Publication
• Report/Paper Numbers: SD2016-06-F
• Contract Numbers: 311219
• Files: NTL, TRIS, ATRI, USDOT, STATEDOT
• Created Date: May 25 2023 1:51PM