Infrastructure & Capital Projects Flashcards

A municipality receives a $10M federal transportation grant with a 20% local match requirement. What is the total project cost and local share?

Answer: Total $12.5M, local share $2.5M

If $10M represents 80% of total cost, then total cost = $10M ÷ 0.80 = $12.5M, with the local 20% match equaling $2.5M.

Which project delivery method provides the municipality with the greatest control over design quality but typically results in the longest project timeline?

Answer: Design-Bid-Build (DBB)

Design-Bid-Build is the traditional sequential method offering maximum municipal design control but requires completing full design before bidding, extending the overall project timeline.

What is the primary advantage of using a Geographic Information System (GIS) in infrastructure asset management?

Answer: It spatially maps asset locations, conditions, and attributes to enable data-driven maintenance planning

GIS integrates location data with asset attributes and condition ratings, enabling spatial analysis that improves infrastructure planning, prioritization, and resource allocation.

A municipality's new water tower project encounters a subsurface condition not shown in the geotechnical report, requiring $500K in additional foundation work. How should this be addressed contractually?

Answer: A differing site conditions claim allows the contractor to seek compensation for unforeseen subsurface conditions

The Differing Site Conditions clause in federal and most public contracts entitles contractors to equitable adjustment when actual subsurface conditions materially differ from those indicated in contract documents.

What is the purpose of a municipal 'right-of-way' in infrastructure project development?

Answer: A legal authorization granting the municipality authority to use private land for public infrastructure

Right-of-way is the legal right to use, construct, and maintain public infrastructure across land, acquired through dedication, easement, or eminent domain.

Which financial metric is used to evaluate whether the annual debt service on a revenue bond issue can be covered by enterprise revenues?

Answer: Debt service coverage ratio (DSCR)

The Debt Service Coverage Ratio (DSCR) measures net revenues available relative to annual debt service; most bond covenants require a minimum DSCR of 1.25 to provide a safety margin.

A city council is debating whether to repair aging infrastructure or replace it. Which analysis framework BEST supports this decision?

Answer: Life-cycle cost analysis comparing repair versus replacement costs over the asset's remaining service life

Life-cycle cost analysis evaluates total costs of repair versus replacement over time, including maintenance, energy, and failure risk costs, providing a comprehensive basis for infrastructure decisions.