The proposed tunnel to replace the seismically deficient Alaskan Way Viaduct in Downtown Seattle is no stranger to controversy. This article highlights recent discussions regarding the cost of the project. Washington Governor Chris Gregoire declared last month “We have no cost overruns in this project at all, zero” and none are expected. Seattle Mayor Mike McGinn claims the cost overruns could be as much as $1.2B. The current construction cost estimate is $1.1B, and the total including design is estimated at $2B. This article has a nice discussion about some of the potential pitfalls that could cause cost overruns, although they appear to be some worst case scenarios in there. But I learned a great deal about surety bonds, sort of insurance policies for these large projects. [Source: Seattle Times Newspaper via CE News. Image: The Seattle Times]
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