Desperate times equal low bids on public works

An article on TDN.com highlights how “public works contracts are coming in well below agency estimates, even in cases were estimates were adjusted downward for the lousy economy.”

The TDN.com quotes Kurt Henthorn, president of the Lower Columbia Contractors Association, saying, “contractors are not taking any real profit margin. They’re just trying to keep the doors open and people working. Everyone is just down to their core people.”

But, according to the article, what is a crisis for the construction industry is seen as a boon for others. The article states that the public is “getting a respite from high construction prices earlier this decade.” And, it goes on to note that “statewide, lower bids are allowing transportation officials to stretch federal stimulus dollars and undertake extra infrastructure projects.”

However, according to the story, stimulus dollars aren’t creating as many jobs as was hoped for. Henthorn states, “It has not seemed to get people off the dime like we thought it would.”

Read the whole story here

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