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How much does it cost to build a road?

Photos of some Elam employees.

We have obtained mining rights for the land, the permitting is complete, and the crusher has been set up and is working. Now the trucks are lined up waiting to start loading the stockpiled materials. But where is this "mountain" of material going?

This is where some of the other specialists in the paving industry use their skills. While all the preparation has been going on in the pit, there has been a continuous stream of bid notices and proposal requests coming in to the office. These can be anything from requests for pothole repair to major four-lane highway construction. Each request is assigned to an Estimator for evaluation, calculation of costs, and preparation of the final proposal or bid. Attention to detail and knowledge of rules and regulations governing the proposed site and project type are vital to this part of the process. A miscalculation of quantities or an overlooked regulation can be disastrous to the profitability of the project.

Preparation of a proposal for private or commercial projects (i.e., subdivisions, parking lots, tennis courts, etc.) may include a walk-through of the proposed project site, review or actual drafting of the construction plans, calculation of the materials, labor and equipment costs involved, solicitation of quotes from any subcontractors who may be used, and so on. Once all costs are gathered, the actual proposal is written and presented to the client. When all signatures are obtained on the proposal it becomes a binding contract and the scheduling of the work begins. At this point the Estimator becomes the Project Manager, overseeing all phases of the project through completion and billing.

Bidding for state and federal highways requires all of this; but is much more involved, due to the many stringent regulations that govern every step of the project.

Bid notices and plans are received approximately three weeks in advance of the bid opening (four weeks on major or new construction jobs). Pre-bid preparation includes the same walk-through, review of plans, and calculations necessary for commercial projects; but also includes arranging for bonding and special solicitation for quotes from Under Utilized/Disadvantaged Business Enterprises.

Bids on government contracts are opened and read publicly and the low-bidder must submit various reports, including such things as their goals for using minority subcontractors. After the contract is officially awarded, another round of paperwork begins. These submissions include the certifications for bonding and insurance, the subcontractor requirements (which must be approved by the state), projected time schedules, and proof of Equal Employment Opportunity compliance, etc. Tax exemption certificates must be obtained from the State Revenue Department and sent out to all subcontractors and suppliers. All of this takes another four to six weeks.

The next step is the pre-construction conference where the final details are worked out between the contractors and government officials. And finally, the Notice to Proceed is issued and work can begin. This does not end the paperwork, however, as there are weekly reports and monthly pay estimates and billings to be done throughout the life of the project.

All of this "behind the scenes" work requires Estimators, Project Managers, and Contract Administrators with specialized skills. They, along with the office managers, payroll and accounting staff, support the crews in the field and keep things running smoothly and on schedule.

Next we check in with the Base Crews as they start on their part of the project.

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