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Indiana DOT reports rising interstate construction costs as inflation and larger urban projects push FY2026 per‑mile averages

Indiana Capital Chronicle reported on Oct. 2, 2026 that the Indiana Department of Transportation reported higher average costs per centerline mile for interstate construction in FY2026 versus FY2015, citing inflation, material and labor pressures and a shift from resurfacing to major urban-capacity projects.

BUSINESSINDY BRIEFPublished October 2, 2026 at 5:03 AM EDTLiving story · 2 sources
AI-generated illustration of the topic: Indiana DOT reports rising interstate construction costs as inflation and larger urban projects push FY2026 per‑mile averages
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Indiana Capital Chronicle reported Oct. 2, 2026 that INDOT’s reported metric — average construction cost per centerline mile — rose when comparing FY2026 to FY2015. The FY2026 average reflected some large interstate and bridge contracts, and INDOT’s published calculations include items such as structures, pavement, traffic control and other project elements.

INDOT told the Capital Chronicle the rise was driven by broad inflationary pressure, higher prices for steel, concrete and other materials, and changes in the program since the 2017 road-funding law that shifted work from shallower resurfacing to heavier capital projects (often in metropolitan areas). The agency said it bundles projects to limit traffic impacts, generally awards contracts by competitive bid, and also uses alternative-delivery methods and 20-year asset-management planning to guide work.

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