Case Study: Florida Coastal Highway Project Experiences Asphalt Binder Shortage (2018)

Project Overview
• Name: Florida Coastal Highway Improvement
• Location: Miami, Florida
• Year: 2018
• Project Size: $280 million
• Scope: Major highway resurfacing and widening involving large asphalt paving works
• Lead Agencies/Contractors: Florida DOT /

Category of the Issue, Problem, or Challenge
• Supply Chain Disruption
• Asphalt Binder and Paving Materials

Summary of the Issue, Problem, or Challenge
A regional shortage of asphalt binder, caused by refinery outages and increased demand, resulted in intermittent paving shutdowns and resurfacing delays.

Root Cause Analysis

• Unexpected refinery maintenance led to supply cuts.
• Demand surge from multiple concurrent regional paving projects.
• Limited stockpiling and contingency in material procurement strategy.
• Ineffective early communication with suppliers about availability risks.

Impacts Due to the Issue, Problem, or Challenge
• 2-month cumulative delay in paving activities.
• Increased costs due to material price spikes and contract penalties (~$2 million).
• Disruption to traffic management plans and public dissatisfaction.

Corrective Actions Taken

1. Negotiated supply contracts with multiple asphalt binder providers.
2. Established regional stockpiles to buffer against supply interruptions.
3. Implemented improved supplier communication and early risk alerts.

Lessons Learned

• Critical paving materials require supply risk assessment beyond normal cycles.
• Stockpiling and multi-supplier contracts mitigate binder shortages.
• Supplier communication protocols are vital for early warning.

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

• Are critical paving materials’ supply risks actively monitored?
• Are stockpiling strategies aligned with project schedules?
• Is supplier communication transparent and frequent?