In 102 recently completed projects with initial budget of $302.7 million, the Department of Transportation experienced construction cost overruns of $28.6 million (9.5%). Over half of this amount ($15.6 million or 5.2% of budget) was classified as avoidable costs, and the remaining amount was considered to be unavoidable.
About $4.2 million (1.4% of budget) in avoidable cost overruns did not add value for citizens and represents wasted money. Responsibility for cost overruns is shared among consultants, third parties, and Department staff. (Third parties include utility companies, permitting agencies, and local governments.)
Department practices limit its effectiveness in recovering cost overruns or sanctioning those responsible for overruns. The Department needs to take additional steps to hold consultants, third parties, and its staff accountable for cost overruns.
The Department is taking steps to minimize cost overruns, the impact of which may not be known for several years.

Assessing Privatization in State Agency Programs
Report 98-64 February 1999
Follow-Up Report on the Florida Department of Transportation's Performance In Controlling Cost Overruns When Building Roads and Bridges
Report 97-22 December 1997
Review of the Florida Department of Transportation Construction Bid and Contract Administration Process
Report 96-85 May 1997

Copies of this report in print or alternate accessible format may be obtained by email OPPAGA@oppaga.fl.gov, telephone (850) 488-0021, or mail 111 W. Madison St., Room 312 Tallahassee, FL 32399-1475.