The city of Tucson has begun construction on their modern streetcar project, but the Arizona Daily Star reveals that the town doesn't have enough to pay for the project if things hit an unexpected snag.
The goal of the $197 million streetcar project is to improve the city's transportation, but city officials fear that the project may never get done if it runs into a roadblock. The city has the $200 million to cover the cost of construction, but no money for emergency funds or design changes.
Typically, construction projects of this size set aside extra money - about 10 to 15 percent of the budget - in order to deal with unexpected scenarios like delays or modifications to the initial plans. Yet the city is $26 million short, so it has no way of completing the project if the primary budget runs out.
"If we get to $200 million and we've built half of it, we're not finishing it," city councilman Paul Cunningham told the news source. "I think we have a lot of oversight and I have confidence they're being really careful, but I'm just scared of cost overruns and the potential for nickel- and dime-ing and all those things that happen in projects with unforeseen circumstances."
Construction companies hoping to win major city contracts should consider using online auction sites like IronPlanet to buy used construction equipment, which can help them keep their costs down and work within a budget.
