Will the cost overruns of the Highway 20 project at Pioneer Mountain affect future state highway projects? It's possible, but it's too early to tell, said a spokesman for the Oregon Department of Transportation.
"The fiscal effect is unknown at this time, but we know we're going to go above the $130 million construction budget," said Joe Harwood, an ODOT spokesman in Springfield. "We have a finite amount of money. Depending on how big a hit we take … there's a very good likelihood we'll see projects delayed. In extreme circumstances, we might see projects canceled."
Harwood wasn't specific about what projects, if any, might be delayed, but he said ODOT's northwest region - which includes Linn and Benton counties - would take the biggest hit. The northwest region stretches from Clatsop to Lane counties.
The Highway 20 reconstruction project will result in a straighter stretch of road from Eddyville to Pioneer Mountain, replacing the current twisty 10 miles.
The project ran into large problems in April when the contractor announced it would cost $61 million more to stabilize ancient landslides in the construction area. The project is now on hold for at least a year while ODOT and the contractor try to negotiate an agreement to continue the work.
ODOT is using Oregon Transportation Investment Act money to pay for this project. The agency uses these funds mainly to replace or repair aging bridges. The new stretch of highway will have eight bridges.
Harwood said ODOT is confident the overrun won't reach
$61 million. He said the agency and Granite Construction, the contractor, are negotiating a final cost and where to go from here.
He said the two sides will know better in six months what the overrun will be. At that point, it will go to the five-member Oregon Transportation Commission to decide from where that money will come.
In the meantime, Harwood said, Granite crews are only doing erosion control work on the site. ODOT and Granite have tentatively agreed to suspend all work by Sept. 1 as talks continue, but that date isn't firm yet.
Posted in Local on Thursday, August 23, 2007 12:00 am Updated: 7:56 pm.
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