Department of Transportation
An Audit Report on the Department of Transportation's Highway Design Function
February 2000
Report Number 00-014
Overall Conclusion
An increased risk exists that the Department of Transportation (Department) may not be able to maintain effective controls over the design of highways because increased construction funding is putting additional pressure on a highway design function that appears to be at capacity. Since fiscal year 1996, the amount of new contracted construction has increased from $1.5 billion to $2.9 billion, an increase of 93 percent, while staffing in the design area increased by 15 percent. This significant increase in workload places a greater strain on the Department's ability to continue to manage the design process and minimize cost overruns and delays. Also, the Department has not developed a formal action plan to help its districts cope with the increased workload and disproportionate increase in resources.
The Department has a sufficient process for reviewing highway construction design plans. However, we noted instances where the process did not always work as intended, which occasionally resulted in increased construction costs.
Key Facts and Findings
Revisions to construction contracts caused by design errors or omissions increased by 55 percent in fiscal year 1999. This represents $28,804,000. In comparison, the amount of new contracted construction for the year ending in February 1999 (the period that had the most impact on these revisions) increased by 20 percent.
While construction expenditures increased by 17 percent in fiscal year 1999, the hours spent on construction inspection increased by 1 percent. The increased workload for construction inspectors raises the risk that the required inspections will not be performed adequately.
The Department is achieving its main goal of meeting the schedule to contract for all construction projects. However, it is not achieving its targeted performance for the timeliness and quality of the design plans.
The Department estimates it is currently meeting 43 percent of the State's identified transportation needs. Additional funding to meet a larger percentage of these needs would place an even greater strain on the Department's ability to continue to manage the design process and minimize cost overruns and delays.
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