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<br />
<br />TO:
<br />
<br />FROM:
<br />
<br />DATE:
<br />RR:
<br />
<br />Gentlemen, .
<br />
<br />Home 0Ifice
<br />Fargo, Nor" Dalal(a
<br />1000-17 Aweme Nulh
<br />58102-2910
<br />PO 1l<lIl2&l6
<br />58108-2&16
<br />Phone 701-211-1225
<br />Fax 701-277-1516
<br />
<br />AnA{JJj1D\f 3
<br />
<br />OIcIdnson, Nor1Il 0aIl0Ia
<br />PO Box 1035
<br />58602-1035
<br />Phone 701.22S~197
<br />fax 701-2~7
<br />
<br />0fIIce
<br />Bismarclc. North DalroIa
<br />PO 8aI< 1254
<br />58502.1254
<br />PI100a 701.223-66115
<br />Fax 701-224-0937
<br />
<br />IMPROVEMENT COMPANY
<br />
<br />M E M 0 RAN DUM Thomas MCCormick, President/CEO
<br />Steve MCCormick, Executive Vice-President
<br />
<br />Dave Rechtel, Mandan City Engineering
<br />Mel Bullinger, PE, Bismarck City Engineering
<br />~/>j;~ M*~niJf.;t;'~t~~!~ug~~r'
<br />Niles~fiusCIika,'PE, KLJ -.... ...
<br />I.on Koms~as> PE, ~wenson Hfl_gen &. Co.
<br />Ron Manchester, PE, Toman Engineering
<br />Malcolm ]'onneson, P E, Interstate Engineering
<br />Mike Gunsch, PE, Houston Engineering
<br />Vo~ lo..T..~~.1.~_ on Do....l^H P. Ul~~. D_^:_^~_:__
<br />.I:~_\".u. 1 "I.YL>vUlvl, J. L, ual Uv&.l "'" IV ......,l J...iJl~Ulvt,;J.1U~
<br />Cal Gendreau, PE, NDDOT
<br />Kt;viu ixvi, PE, NDDCfi'
<br />Chuck Morman, Supt., Morton County
<br />Jon Mill, PE, Burleigh County 6
<br />
<br />Bradley A. Ballweber, VPffreasurer
<br />Northern Improvement Company
<br />
<br />October 9,2008
<br />
<br />-".
<br />
<br />ncr-.F\VEO u'1
<br />1''----
<br />
<br />Qcf 1 01nn~
<br />
<br />, nJf.K-" .
<br />
<br />Construction Materials Cost Increases
<br />
<br />In the past, I have sent you several memos regarding the volatility of construction materials prices
<br />and supply. In a continuing cffort to update you, I have enclose an article from the October issue of
<br />the Construction Bulletin. titled "What's Driving Asphalt Prices Up?" as well as a charl [rom the
<br />ENR magazine relative to price movements of various construction materialsin)008. I trust you
<br />find this type of information helpful.
<br />
<br />To bring this point closer to horne, our local asphalt cement supplier, CHS, has indicated PO 58-28
<br />asphalt oil could be in the $775.00rron range FOB Mandan, ND in 2009. Our area was fortunate in
<br />2008 with oil prices being fairly stable in the:f: $400.00ffon range. Costs for asphalt oil in Arizona
<br />and California this past summer were $900.00rron - $l,lOO.OOrron.
<br />
<br />Recently, crude oil prices have dropped. However, there is not a direct correlation between crude
<br />prices and asphalt cement or fuel. Hopefully, the recent downward trend in crude oil prices will
<br />have a positive effect on asphalt cement and fuel by next year's construction season.
<br />
<br />Thank: you for your time..
<br />
<br />JERW'f:llID~
<br />E~~s. Steve Mariner, VP, Mariner Construction 10 ~@ ~
<br />Russ Hanson, Exec. VP, AGe
<br />Torn MCCormick, President, Northern Improvement Company OCT 17 2008
<br />Kim Conlon, VP, Northern Improvement Company
<br />Steve MCCormick Jr., Northern Improvement Company
<br />
<br />CORPORATE
<br />ULTEIG ENGINEERS
<br />FllrQo, ND
<br />
<br />
<br />www.nlcnd.com
<br />Highway M Heavy ~ Municipal Contractor
<br />We ara an Equal Opportunity Employlll'
<br />
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