Case Study: Cost Overrun from Site Access and Logistics on New Jersey Turnpike Widening (New Jersey, 2015)

Project Overview
• Name: New Jersey Turnpike Widening Project
• Location: New Jersey
• Year: 2015
• Project Size: $600 million
• Scope: Widening of highway lanes, bridge replacements, and infrastructure upgrades
• Lead Agencies/Contractors: New Jersey Turnpike Authority /

Category of the Issue, Problem, or Challenge
• Site Access & Logistics
• Cost Management

Summary of the Issue, Problem, or Challenge
Limited site access and congested logistics slowed material delivery and work progress, leading to increased costs.

Root Cause Analysis

• Constrained Urban Environment: Limited staging areas and access routes for equipment and materials.
• Traffic Management Challenges: Extensive traffic control measures required, reducing productivity.
• Poor Logistics Planning: Insufficient coordination of material delivery schedules led to onsite bottlenecks.
• Coordination with Local Agencies: Delays due to permitting and coordination with multiple agencies.

Impacts Due to the Issue, Problem, or Challenge

• Cost overruns of approximately 13% due to delays and added logistics expenses.
• Project timeline extended by three months.
• Increased labor and equipment idle time costs.

Corrective Actions Taken

1. Developed detailed logistics and staging plans with optimized delivery windows.
2. Improved traffic management strategies to minimize disruption.
3. Coordinated closely with local agencies to expedite permits and approvals.
4. Used just-in-time material delivery approaches to reduce onsite congestion.

Lessons Learned

• Early and detailed logistics planning is essential in congested environments.
• Coordination with local agencies reduces permitting delays.
• Efficient material delivery and site access management controls costs and schedule.

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

• Has detailed site access and logistics planning been completed?
• Are material deliveries coordinated to avoid onsite congestion?
• Are traffic management and local agency coordination proactively managed?