I-40 Relocation Progress

[Midtowner]

Highway construction in Oklahoma works like this:
‘Good ole’ boy’ construction companies make low, impractical bids that allow them to win the bidding process, knowing the final cost and completion dates cannot possibly be met. They don’t care because everyone expects more money for all major projects to be allotted because of some “unforeseen crisis”.

The winning construction company initiates a token workforce to do the necessary initial dirt work and keep concerned parties off their back for a few years by tricking the populace into thinking the project is running on schedule.

The interest free “loan” allocated for the initial project then gets funneled into other ventures and investments. These other investments are where the construction companies actually make the most money, and are why they work in conjunction with their government financial cronies to always extend the cost and completion dates. The longer the project can be extended and the more money allocated, the better it is for those that make money off the situation.

On most road projects the work will be completed at the latest possible date, even though an active work crew could finish the project in one tenth or less of the time actually used.

Frisky, I'm not aware that this is the way things are done. I ran this by my father who used to be general counsel to the highway department (now ODOT) and he doesn't agree that this is how things are done.

As far as I know, the engineers provide progress payments to contractors when certain milestones are met as well as ensuring that projects are finished on time (else liquidated damages follow).

I agree that ODOT is very sleazy, but I just don't know of anything which supports your theory. I don't believe the state can even constitutionally loan money to a private entity (if that's where you're alleging these loans are coming from).

[FRISKY]

As far as I know, the engineers provide progress payments to contractors when certain milestones are met as well as ensuring that projects are finished on time (else liquidated damages follow).

I agree that ODOT is very sleazy, but I just don't know of anything which supports your theory. I don't believe the state can even constitutionally loan money to a private entity (if that's where you're alleging these loans are coming from).

We are using different terminology to say the same thing.

I used the term "loan" in quotation marks not to indicate a true monetary loan from the government, but a way of denoting that the contractors would get ample enough funding from what you call “progress payments” to be able to finance other projects at the same time as initial project. The contractors don’t use all the money from each progress payment the first day of that section of the contract.

Construction companies want to extend the contracts as long as possible so they will have more time to use the monies for other investments before they actually need it to finish the required segments of the initial project.

I didn’t just theorize this. I have worked for both highway and county road construction companies and have had alliances with the politicians in charge of funding for those road construction contracts.