FUND(S):

STATE ROD FUND

Sources of Revenue:

Special Fund

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    This legislation continues a pilot program to determine whether the concept of design-build highway projects is beneficial to the State. The initial program was for three projects: Two of the projects selected saved approximately $33 million while the third project was approximatley $10 million over the DOH estimate, the use of design-build saved approximately 14 months in time. All three projects are still in the construction phase.
    
    The new legislation continues the analysis of the design-build process to determine what projects would be appropriate for the process. While the initial three projects showed a cost and time savings, the continuation of the pilot program will reveal more information for future project selection.
    
    While the cost in money and time are unknown for projects selected on this bill, there is no additional cost to the DOH. Any cost savings incurred will allow the DOH to fund more construction projects. Those projects showing only a time savings, still result in more projects being awarded as costs are incurred at today's dollars versus the escalating construction costs at a later date.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2009
Increase/Decrease
(use"-")
2010
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost -33,000,000 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    Cost Savings:
    
    Project 1 $31,200,000
    Project 3 2,700,000
    Total Cost Savings: $33,900,000
    
    
    Time Savings:
    
    Project 2 14 Months



Memorandum


    
    
    The policy and procedures developed for the design-build program were developed with the approval of the Contractors Association of West Virginia.
    
    The criteria for this legislation (10 projects with an aggregate total of $150 million) was also developed with input and final approval of the industry.



    Person submitting Fiscal Note: Kathy J Holtsclaw
    Email Address: Kathy.J.Holtsclaw@wv.gov