Case Study: Delay Due to Labor Shortages on I-95 Rehabilitation Project (Virginia, 2017)

Project Overview
• Name: I-95 Rehabilitation and Widening
• Location: Virginia
• Year: 2017
• Project Size: $500 million
• Scope: Highway rehabilitation, lane additions, and bridge repairs
• Lead Agencies/Contractors: Virginia Department of Transportation (VDOT) /

Category of the Issue, Problem, or Challenge
• Labor Shortage
• Project Delay

Summary of the Issue, Problem, or Challenge
Unexpected labor shortages, particularly of skilled workers like ironworkers and concrete finishers, caused slowdowns during critical phases.

Root Cause Analysis

• Regional Labor Market Tightness: Competing projects reduced available skilled labor.
• Inadequate Workforce Planning: Underestimated labor demand and recruitment timelines.
• Limited Training Pipeline: Few local training programs to quickly upskill workers.
• Contractor Retention Challenges: High turnover due to project conditions and pay disputes.

Impacts Due to the Issue, Problem, or Challenge

• Delay of 5 months in several segments.
• Increased labor costs from overtime and subcontractor premiums.
• Reduced overall productivity and morale.

Corrective Actions Taken

1. Partnered with local trade schools to increase workforce training.
2. Improved labor forecasting and recruitment planning.
3. Enhanced worker retention programs and incentives.
4. Adopted flexible scheduling and phased work to better align labor availability.

Lessons Learned

• Skilled labor availability must be integrated into project schedules.
• Early partnerships with training institutions strengthen labor supply.
• Retention strategies reduce costly turnover delays.

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

• Is labor market availability assessed and factored into schedules?
• Are partnerships in place to support workforce development?
• Are retention and incentive programs established?