The US spends an estimated $91 billion on US highways every year, with most pavement expenditures going to maintenance of the existing system. However, congestion is a major issue. It is estimated that congestion leads to 5.5 billion wasted hours and 2.9 billion gallons of wasted gas, costing $121 billion annually. Expansion of the system is needed, but current funding streams are not even able to keep up with maintenance needs. The primary approach to address this challenge has been to increase funding. While this is needed, agencies also need to improve the efficiency of their roadway investments to get more out of their pavements. This can be accomplished in two ways. First, agencies can increase competition in the pavement bidding process. Basic economics confirms that when there is competition among many contractors and across paving industries, the average unit prices for pavements are lowered significantly. The second way is to improve the management of the pavement assets to increase the average life of the network. A longer life network, though it may initially cost more, has a larger return to both the agency and the driving public in reduced expenditures and congestion. This paper will show how agencies can improve the pavement network investment efficiency using these two items.
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