INDIANAPOLIS, Ind. (WOWO) — The cost of building and rebuilding Indiana interstates has climbed sharply over the past decade, with state transportation officials and industry leaders pointing to inflation, higher material costs and a shift toward larger, more complicated projects. Indiana spent an average of about $46 million to construct a centerline mile of interstate during the 2026 state fiscal year, which ended June 30. That compares with an average of roughly $8.4 million per centerline mile in fiscal year 2015 — an increase of nearly 450%, according to figures presented by the Indiana Department of Transportation during an Aug. 27 State Budget Committee meeting. The numbers caught the attention of lawmakers according to the Indiana Capital Chronicle. “That’s unbelievable,” Democratic state Sen. Fady Qaddoura of Indianapolis said after the figures were presented. INDOT cautions that the numbers do not represent the cost of building a standard mile of roadway. The calculation covers centerline miles associated with full interstate reconstruction projects or projects that add travel lanes. The number and type of projects can vary significantly from one year to another, meaning the average can be heavily influenced by which major projects are under construction during a particular fiscal year. INDOT spokeswoman Natalie Garrett said the costs include much more than pavement. Projects can involve replacing or adding lanes, rebuilding and widening shoulders, installing barriers and guardrails, managing traffic during construction, drainage work, materials and labor. Garrett also cited inflation, supply-chain disruptions and the effects of the COVID-19 pandemic as factors contributing to higher construction costs. The Federal Highway Administration tracks similar national cost pressures through its National Highway Construction Cost Index, which measures changes over time in the prices transportation departments pay for highway construction materials and services. Federal data shows highway construction costs have risen substantially in recent years, particularly since 2021. But Indiana transportation officials and construction industry representatives say inflation alone does not explain the state’s increase. Indiana is taking on larger projects that involve adding interstate capacity and rebuilding major portions of existing highways, while some other states are placing a greater emphasis on maintenance or bridge-related work. “Indiana is unique,” Garrett said, referring to the state’s emphasis on additional highway capacity. Brian Gould, executive director of the Build Indiana Council, said the type and location of construction are major factors in determining what a project ultimately costs. Following a major road-funding law approved by the Indiana General Assembly in 2017, Gould said, much of the state’s highway work initially consisted of relatively straightforward resurfacing. Those projects typically involved removing the top layer of worn asphalt and placing new pavement. The state’s program has since moved toward larger capital projects, including interstate reconstruction and capacity expansion, many of them around major population centers. “Those are really your two biggest factors when it comes to cost: what do you want us to build, to what scale, and where do you want it located at?” Gould said. Two projects were particularly significant contributors to INDOT’s fiscal 2026 average: Revive I-70 in Wayne County and the Safer Drive 65 project in Scott and Clark counties. Both projects require traffic to continue moving through major interstate construction zones while work is underway. Garrett said the traffic-management requirements on I-70 and I-65 are especially complicated because construction crews have to maintain high traffic volumes while protecting workers and motorists. Those requirements can include temporary traffic patterns, concrete barriers, additional lane-management equipment and other measures that would not be necessary on a less congested roadway. Construction in urban and heavily traveled areas also generally requires more preliminary engineering and planning, according to INDOT. There can be more traffic to reroute, more lanes involved in the work, additional safety measures and greater logistical challenges for contractors. Materials are another major factor. Gould said large interstate and bridge projects require substantial amounts of steel and concrete, two materials that have experienced significant price increases in recent years. The construction industry is also competing for materials and equipment with other major developments taking place across Indiana. Gould pointed to the state’s rapidly expanding data-center industry as another source of demand for concrete, steel, asphalt and construction equipment. “We’ve had kind of a booming economy here in Indiana, and data centers are consuming as much concrete and steel and asphalt as job sites are, so we’re competing against them as well,” Gould said. He also said contractors are facing competition for specialized equipment needed for major construction projects. The result is a combination of higher prices and greater demand for the same materials, labor and machinery. INDOT says it is using several strategies to control costs. Major projects are generally put out for competitive bidding, with the agency typically required to select the lowest-priced qualifying proposal. The department also increasingly uses alternative project-delivery methods that bring contractors into the process before construction begins. Garrett said early contractor involvement can be particularly useful for complicated projects because it can help identify risks earlier, speed up construction, encourage design changes and provide greater certainty about costs. INDOT also groups projects together in contracts based on factors such as timing and location. The department says bundling projects can create efficiencies while also reducing the number of separate construction disruptions motorists encounter. INDOT has another tool it says is intended to control long-term costs: its asset-management planning. Garrett said Indiana is the only state in the country that maintains 20-year asset-management plans covering infrastructure such as pavement, bridges and drainage systems. The strategy is based on addressing problems earlier, before infrastructure deteriorates to the point where a complete reconstruction becomes necessary. The concept is similar to preventative maintenance: spending less to preserve an asset while it remains in relatively good condition rather than waiting until a much more expensive replacement is required. The debate over construction costs comes as Indiana continues a major expansion of its transportation program. INDOT says it expects to invest about $60 billion in preservation and construction projects between 2017 and 2037. The department’s major-project portfolio includes Revive I-70, the I-65 Safety and Efficiency project, Safer Drive 65, Clear Path 465, the I-69 Ohio River Crossing and other interstate and highway projects. The agency says the projects are intended to address safety, congestion, mobility and economic-development needs across the state. The cost-per-mile figures therefore reflect two trends occurring at the same time: the rising price of highway construction and Indiana’s decision to pursue larger, more complex transportation projects. The distinction matters because a $46 million average for a centerline mile of major interstate reconstruction cannot be directly compared with the cost of simply resurfacing an existing roadway. The Federal Highway Administration also cautions that its national highway construction cost index measures changes in construction prices, not changes in the scope or complexity of individual projects. That means Indiana’s dramatic increase in its average cost per centerline mile represents both higher construction prices and a changing mix of projects. For Indiana drivers, the financial question is ultimately tied to what the state chooses to build, how quickly it builds it and how much of the existing transportation system can be preserved before replacement becomes necessary. For INDOT, officials say the goal is to manage those costs while continuing to address the state’s growing transportation needs. For lawmakers reviewing the numbers, the $46 million average provides another measure of how much more expensive major interstate construction has become — and how significantly the scope of Indiana’s highway program has changed since the state’s major road-funding overhaul in 2017. The post Indiana interstate construction costs surge to $46 million per mile as projects grow more complex appeared first on WOWO News/Talk 92.3 FM and 1190 AM. ...read more read less