Indiana DOT projects face higher bills as interstate construction costs rise, report says
The Indiana Capital Chronicle reported on Oct. 2, 2026 that rising material prices, inflation and the state’s shift to larger urban and capacity projects have pushed up interstate construction costs; the FHWA national highway construction cost index rose by more than 60% from 2020 through 2025, the story says.
The Indiana Capital Chronicle reported Oct. 2, 2026 that Indiana’s interstate construction costs have increased amid inflation, higher material prices and INDOT’s move toward larger capital projects. The story cites INDOT officials and contractors who pointed to steel, concrete and asphalt price increases, competition with data centers for materials and equipment, and the FHWA index rising more than 60% from 2020–2025.
The article says INDOT included complicated projects such as Revive I-70 and Safer Drive 65 in its FY2026 average cost figures and describes agency practices intended to limit impacts and costs — bundling projects, using alternative delivery to involve contractors pre-construction, 20-year asset-management planning and competitive bidding. It also notes resurfacing work changed after a 2017 law (different milling and overlay depths).
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