Competition produces huge cost reductions

There's a bit of a goldrush mentality on Guam these days, especially heated by expectations far outpacing realities and practicalities, brought about by the global realignment of US military posturing and the emphasis on the Western Pacific region in particular as we begin the New Pacific Century.

It's the biggest thing since Magellan. Once again, the world, and the US, discovers the unique geographic significance of this Marianas Islands chain across the top of Micronesia, at the Heart of the Lei of the Lands that form the curtain between East and West Pacific. Guam is the Crossroads of the East and West, North and South Pacific.

Although the buildup may be seen to be driving up some costs for scarce local resources, the competition for scarce dollars in an economy-challenged world is driving down the anticipated cost of the buildup:

Military Construction Costs on Guam Drop Up to 30% Amidst Fierce Bidding for Contracts

Guam Contractors Association President James Martinez says costs are falling because of fierce competition for the construction jobs that are out there, as well as improvements in cost saving technology which have resulted in lower bids from construction companies.

With bids on many federal jobs coming in at 25% to 30% under the originally estimated cost, that is translating into huge savings for the Federal Government on the multimillion-dollar buildup projects DoD is offering.

If you are a contractor and want to follow the construction and other buildup news, an excellent one-stop shop is the Guam Buildup News site.