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Rising interstate construction costs pressure INDOT projects, Indiana Capital Chronicle reports

Indiana Capital Chronicle reported on 2026-10-02 that inflation, pandemic-era supply-chain disruptions and competition from industries such as data centers have driven up interstate construction costs, pushing INDOT’s FY2026 per-centerline-mile figures higher and increasing the cost of major projects near metropolitan areas.

BUSINESSINDY BRIEFPublished October 2, 2026 at 5:03 AM EDTLiving story · 2 sources
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Indiana Capital Chronicle reported on 2026-10-02 that interstate highway construction costs in Indiana have risen, citing inflation, supply-chain shortages and pandemic-related factors. The story said data centers and other industries are competing with road builders for concrete, steel, asphalt and equipment, and that INDOT’s FY2026 average cost per centerline mile reflects those higher costs.

The article described INDOT practices the agency says respond to the trend: bundling projects to limit traffic impacts, using alternative delivery methods with early contractor involvement, and generally awarding competitively bid work to the lowest-priced proposal. It also said INDOT maintains 20-year asset-management plans and that maintenance-of-traffic and urban work add to project costs.

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