Indiana Capital Chronicle: INDOT reports higher FY2026 highway construction costs, cites inflation and project complexity
The Indiana Capital Chronicle reported on Oct. 2, 2026 that the Indiana Department of Transportation’s average cost per centerline mile for fiscal 2026 rose, with INDOT and the story citing inflation, higher material costs and more-complex projects. INDOT said it is using bundling, alternative delivery and 20-year asset plans to limit impacts.
The Indiana Capital Chronicle reported on Oct. 2, 2026 that INDOT’s reported average cost per centerline mile in the 2026 state fiscal year increased. The article said INDOT attributes higher costs to inflation, rising prices for materials and equipment, and the inclusion of more-complex projects (two large projects were included in the FY2026 average).
The story described INDOT’s responses: bundling projects within contracts to limit traffic impacts, using alternative-delivery methods and early contractor involvement on complex work, and maintaining 20-year asset-management plans to prioritize lower-cost maintenance. It also noted INDOT projects are competitively bid (generally selecting the lowest-priced proposal) and that the Federal Highway Administration cost index rose between 2020 and 2025.
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