Seattle Hits Breaks

The high prices of steel and other construction materials are forcing the city of Seattle and the surrounding Puget Sound region to cut back on some construction projects, according to a report in the Puget Sound Business Journal (Seattle).

The city was forced to make nearly a million dollars in budget cuts to the construction of its new Northgate library after spikes in steel and material costs sent the project nearly $2 million over budget, according to the report.

The Puget Sound Business Journal reports that reductions, redesigns and financial adjustments have become common. The planned renovation of Shilshole Bay Marina has been scaled back, according to the report. The Port of Seattle tells the Journal that price spikes are driving total project costs up by 10 percent.

Steel prices have been riding high throughout 2004, and the Journal also reports that concrete has become more expensive as imported cement prices in the Puget Sound region have increased by nearly 8 percent.

City officials are concerned over the effect the high materials costs could have on several multi-billion dollar transportation projects currently on the table, like the Seattle Monorail Project’s Green Line and a proposed waterfront tunnel to replace the Alaskan Way Viaduct, according to the report.

Ken Simonson, chief economist with the Associated General Contractors of America (AGC), tells the Journal he expects some major public works projects will be forced to undergo redesign or delays. “2004 was a difficult year for both contractors and public agencies,” he says. “I see only limited prospects for relief in 2005.”