INDOT says interstate construction averages rose in FY2026 as material costs and project complexity climbed

The Indiana Capital Chronicle reported Oct. 2, 2026 that INDOT’s FY2026 average cost figures for building a centerline mile of interstate reflect larger capital projects and higher material and labor costs. The article says the reported costs include lane replacements/additions, widened shoulders, barrier walls/guardrails, traffic and drainage control, materials and labor.

The story attributes comments to INDOT and industry sources saying the state shifted from mostly resurfacing to larger projects after a 2017 law; INDOT bundles work within contracts, maintains 20‑year asset‑management plans, uses alternative‑delivery methods for some complex jobs and generally awards contracts by competitive bidding. The article notes two complicated projects were included in INDOT’s FY2026 average and, per INDOT, those projects carry maintenance‑of‑traffic requirements; industry sources cited rising steel and concrete prices and competition for materials with data‑center construction, and an industry representative described benefits of early contractor involvement on complex projects.

Report a correction · Editorial standards · Our source directory

BusinessIndy examines this development and its implications for Indiana businesses and communities using the linked sources.