Well, paying legally required “prevailing wage” to union workers, for one thing. This adds from 33-50% to the straight labor costs.
But there’s a more insidious cost to reckon with. And that’s the often overlooked administration costs tacked on to construction projects by the City Engineering Department. By gouging these projects with inflated bureaucratic costs, the Engineering Department can pad its own budget without leaning on the General Fund. The monies for capital projects comes from CDBG funds, Redevelopment tax increment, Gas Tax revenue – a whole crazy Byzantine funding network that fortuitously disconnects the payer from the beneficiary.
Yesterday our blogger Christian noted that a contract to upgrade traffic signals at three intersections was let out to a contractor for about $102,000; but that the City’s Engineering Department tacked on a whopping $39,000 for its own administration and inspections. That’s about a 38% increase, and is anomalously high – even for a typical project in Fullerton. Smaller projects get disproportionately nailed. But the point is that actual infrastructure improvements – the very stuff that everybody says they want to promote – is getting, and has gotten robbed by featherbedding in the Engineering Departments.
Of course this has been going for years and years and years. It’s a standard practice. Probably everywhere. So why haven’t the politicians ever cottoned on to this sleight of hand? Maybe they have. But its just so much easier to go along with the “experts” and not ask any questions; or if you do, don’t demand any cogent answers.