Case Study: Los Angeles Highway Widening Project Impacted by Asphalt Binder Shortage (2023)
Project Overview
• Name: I-405 Highway Widening
• Location: Los Angeles, California
• Year: 2023
• Project Size: $750 million
• Scope: Widening of highway lanes and pavement rehabilitation
• Lead Agencies/Contractors: Caltrans /
Category of the Issue, Problem, or Challenge
• Supply Chain Disruption
• Pavement Materials (Asphalt Binder)
Summary of the Issue, Problem, or Challenge
The project experienced significant delays and cost overruns due to a shortage of asphalt binder caused by regional refinery outages and supply constraints, impacting paving schedules.
Root Cause Analysis
- Regional refinery maintenance leading to reduced asphalt binder output.
- High demand for asphalt in multiple concurrent infrastructure projects.
- Lack of alternative binder suppliers and insufficient inventory buffers.
- Inadequate supply chain risk assessment and contingency planning.
Impacts Due to the Issue, Problem, or Challenge
• 3-month delay in paving and associated lane closures.
• Additional costs from expedited material procurement and idle labor (~$4 million).
• Public inconvenience and traffic management challenges.
Corrective Actions Taken
- Secured agreements with multiple asphalt binder suppliers.
- Increased material stockpiles ahead of critical paving phases.
- Developed proactive communication plans with traffic and public agencies.
Lessons Learned
- Asphalt binder supply is vulnerable to refinery operations and regional market dynamics.
- Early procurement and supplier diversification are essential.
- Coordination with traffic management is critical during material delays.
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Are asphalt binder supplies secured from multiple sources?
- Are inventory buffers maintained for critical paving materials?
- Is there a risk mitigation plan for refinery or market disruptions?