Evening star., 1951-03-18
Soaring Costs
Cut Into D. {.
Building Plans
Schools and Highway
Jobs Face Delays
Or Elimination
By Horriet Griffiths

Soaring costs in the last few
months are forcing District Off
cials to redraw the entire public
construction schedule, it was
learned last night.
Some projects face delay. re-
vamping or even elimination, it
was indicated.
The crisis hits not only work yet
to be contracted for this fiscal
year, but more than S25 million Of
construction included in the pend
ing 1852 budget. Congress had
planned to start hearings on these
next month.
Since department heads pre-
pared their 1852 budget estimates
last summer, the outbreak Of
hostilities in Korea has fostered
labor shortages, material restric-
tions and general cost increases
which would drive their proposals
up by several millions of dollars.
Construction Costs Up 1870.
These highlights dot the pic
ture:
/. Director of Construction Ar
chic Hutson said general construc-
ton costs for the District have
risen 18 per cent since last June.
2. Purchasing Officer Roland
Brennan said prices of supplies
and equipment have gone up from
10 to Is per cent since June.
3. School officials said construc-
ton program costs for 1852 ale
ready are up Is per cent. The
Board of Education may even
have to hold up four school build
ing projects authorized to start
this year because there isn't
enough money.
4. A 10 per cent increase in
engineering construction costs
adds from SIS to $40 million to the
potential bill for the Districts
30-year S67 million water expan-
sion program started year ago.
5. The Districts highway con-
struction costs have jumped be-
tween 10 and IL per cent since
last summer.
Problem Already Discussed.
Engineer Commissioner Gordon
R. Young said the Board of Com
missioners has discussed the prob
lem and has directed the budget
office to make a study and re-
port.
He declined to comment on
exactly what steps the city heads
may take to meet the situation.
While gloomily reviewing what
has happened so far, officials
warned also that the inf1ationary
trend may go even higher.
! Mr.. HutSon said that whether
the 18 per cent increase in con-
Struction costs will continue up
ward is anybody's guess. But the
general thinking is that it will
go up another OF per cent,
he said.
Mr.. Brennan said the outlook
on supplies and equipment is for
another 5 per cent rise next fiscal
year.
Two Projects Trimmed.
Prices quoted to the District by
contractors are likely to be pad
ded by the bidders to cover un-
expected increases in costs, sew
eral officials said.
These include difficulty in get
ting certain materials, labor prob
lens, the possibility of delays in
fulfilling the contract and the
added expense of a prolonged Job.
School construction already has
been crippled by the spiral.
Low bids on two new junior
high schools contracted for in the
last few months ran over the
appropriations by staggering
amounts. Only by deleting vari-
Gus items from the original speci-
ficatlons and transferring money
from the lump construction fund
was the city able to award con-
tracts.
The Terrell Junior High School
building was finally let for ST.
832,132, as compared with the
contract authorization of S1,776,-
500.
Equipment Items Reduced.
That was after deletion from
the specifications of the entire
ground improvement contract and
such equipment as gym seats,
Shades, shelving, display cabinets,
lockers, auditorium seats and
Kitchen and cafeteria equipment.
Additional money to provide
these things will have to be sought
in next years budget.
The Douglass Junior High
School building is in about the
same situation. The base bid for
1.-THE building proper was cut down