Case Study: Skilled Electrician Shortage Delays Nevada Highway Interchange (2018)

Project Overview
• Name: I-15 Interchange Reconstruction
• Location: Las Vegas, Nevada
• Year: 2018
• Project Size: $140 million
• Scope: Reconstruction of major highway interchange including lighting, signals, and power systems
• Lead Agencies/Contractors: Nevada Department of Transportation (NDOT) /

Category of the Issue, Problem, or Challenge
• Skilled Trades Shortage
• Electrical Labor

Summary of the Issue, Problem, or Challenge
A regional shortage of certified highway electricians and signal technicians resulted in slow installation of electrical systems and traffic controls. Labor market competition from casino construction projects exacerbated the shortage.

Root Cause Analysis

• Regional labor pool constrained by high demand from other industries.
• Limited electrical subcontractor capacity and scheduling flexibility.
• Insufficient early labor market coordination by project owner and contractor.
• No labor retention or incentive plans initially included in contract.

Impacts Due to the Issue, Problem, or Challenge
• 3-month delay in electrical system commissioning.
• Increased costs due to labor premiums and subcontractor changes (~$1.9 million).
• Temporary traffic management plans extended, impacting local traffic flow.

Corrective Actions Taken

1. Contracted additional out-of-state electricians with relocation assistance.
2. Owner and contractor jointly developed retention bonuses for critical labor categories.
3. Improved labor scheduling coordination and early mobilization strategies.

Lessons Learned

• Electrical trades shortages can create bottlenecks in highway infrastructure projects.
• Early and continuous labor market monitoring is essential.
• Collaboration between owner and contractor improves labor availability management.

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

• Has the electrical labor supply been evaluated relative to regional demand?
• Are incentives and retention plans included for critical trades?
• Are subcontractor capacities and schedules aligned with project milestones?