Arizona Department of Transportation’s Construction Management Function

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This audit focused primarily on the Arizona Department of Transportation’s (ADOT) construction management function. It addresses the need for ADOT to better manage construction cost increases. Because of the large amount of monies involved with construction, every percentage point of unnecessary cost increases that the Department can avoid equates to significant dollar savings. In addition, ADOT needs to fully implement its Project Management Process to help minimize cost increases that occur during construction that are design-related. The audit also addresses steps ADOT should take to improve its partnering program to ensure the program operates consistently for each construction project. The report further recommends that ADOT take advantage of opportunities to use value engineering and design-build contracting to save money and reduce project completion times.

Finally, the audit followed up on concerns identified previously in ADOT’s Equipment Services Section. The audit found that ADOT still has many low-use light vehicles. To monitor vehicle utilization and control fleet size, ADOT needs to establish vehicle utilization standards as was recommended in 1987. Although ADOT has made improvements in equipment preparation timeliness, the Department should explore options that may further reduce equipment preparation time and costs.