Skyrocketing oil prices are slowing down highway construction projects nationwide. And one of the major components of asphalt is oil. In the last 18 months, the Georgia DOT has seen the price of liquid asphalt nearly double, from $245 to $425 a ton.
David Spear is with the Georgia Department of Transportation. He says that may mean renegotiating agreements with DOT's contractors.
"A lot of these projects as you know have two or three year life cycles. They bid the projects at one price and suddenly through no fault of their own material costs go out the roof. We'll consider supplemental agreements for instance to accommodate an increase in the cost of materials."DOT officials may slow down the pace of new contracts as liquid asphalt prices continue their rise. Spear says one option may be to use more concrete in road construction. Concrete costs as much as liquid asphalt but lasts up to three years longer.
