Case Study: Cost Overrun from Labor and Equipment Delays at San Francisco-Oakland Bay Bridge (San Francisco, CA, 2010)

Project Overview
• Name: San Francisco-Oakland Bay Bridge East Span Replacement
• Location: San Francisco, California
• Year: 2010 (construction phase)
• Project Size: $6.4 billion total project
• Scope: Replacement of major bridge span including seismic retrofits
• Lead Agencies/Contractors: California Department of Transportation (Caltrans) /

Category of the Issue, Problem, or Challenge
• Labor & Equipment
• Cost Management

Summary of the Issue, Problem, or Challenge
Delays due to labor disputes, shortage of skilled workers, and equipment breakdowns caused significant schedule slippage and labor cost increases, leading to cost overruns.

Root Cause Analysis

• Labor Disputes: Strikes and slowdowns affected critical welding and steel erection activities.
• Skilled Labor Shortages: Limited availability of qualified welders and riggers delayed key tasks.
• Equipment Failures: Breakdown of specialized cranes and transport equipment caused work stoppages.
• Ineffective Contingency Planning: Inadequate buffers and alternative plans for labor and equipment risk.

Impacts Due to the Issue, Problem, or Challenge

• Cost overruns of hundreds of millions of dollars.
• Project schedule extended by over two years.
• Negative public perception and political scrutiny.

Corrective Actions Taken

1. Improved labor relations and negotiation mechanisms.
2. Recruitment and training programs to build skilled labor pool.
3. Proactive equipment maintenance and backup planning.
4. Revised project scheduling with labor and equipment risk contingencies.

Lessons Learned

• Labor and equipment risks must be proactively managed with contingency plans.
• Investing in workforce development can mitigate delays.
• Maintenance programs reduce equipment downtime costs.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Are labor agreements and dispute resolution processes robust?
• Is there an active program for recruiting and training skilled labor?
• Are critical equipment maintenance and backups planned and budgeted?