How Consultants Drive Up Transit Construction Costs

A new report suggests that an overreliance on external consultants by U.S. transit agencies and other government entities is hollowing out the public sector and raising the costs of transit projects.

2 minute read

February 27, 2023, 8:00 AM PST

By Diana Ionescu @aworkoffiction


Rendering of California high-speed rail train viaduct with arches

California’s high-speed rail project famously relied on consultants for much of its work. | California High-Speed Rail Authority / Rendering of California high-speed rail viaduct

The high cost of building U.S. transit projects has been a hot topic as of late, even as transit services in most American cities remain inadequate. Writing in Slate, Henry Grabar outlines a new report from New York University’s Transit Costs Project that offers recommendations for how to bring down the cost of transit projects, “make it possible for America to build big again,” and rebuild faith in public transit and, perhaps, the public sector in general.

“According to authors Eric Goldwyn, Alon Levy, Elif Ensari, and Marco Chitti, there’s a lot going wrong with American transit projects—more on this in a moment—but many of the problems can be traced to a larger philosophy: outsourcing government expertise to a retainer of consultants.” From New York to California, consultant fees have consumed massive amounts of transit funding. Meanwhile, the report’s authors argue that relying so heavily on external support means agencies don’t hold on to institutional knowledge and skills that could be applied to future projects.

It’s that lack of institutional know-how, of which consultants are both a symptom and a cause, that really hampers projects. The lack of a good in-house team, for example, leads to farming out so-called ‘design-build’ contracts, which ultimately produces more expensive projects by offloading risk to contractors, who bid accordingly.

The report points out that the reliance on consultants isn’t the only factor driving up costs. “Transit routes picked at the ballot box are bound to be worse than those drawn up by experts; transit’s role as a ‘job creation’ bonanza doesn’t create incentives to be particularly efficient.” But the report draws attention to the larger lesson, also laid out in a forthcoming book by Mariana Mazzucato and Rosie Collington: “consultants have hollowed out government functions well beyond transit construction.” Author John Dilulio makes a similar argument, arguing that the shift to contractors “has created a federal apparatus that’s at once bigger, less efficient, and less accountable.”

Thursday, February 23, 2023 in Slate

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 30, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Close-up of white panel at top of school bus with "100% electric" black text.

Driving Equity and Clean Air: California Invests in Greener School Transportation

California has awarded $500 million to fund 1,000 zero-emission school buses and chargers for educational agencies as part of its effort to reduce pollution, improve student health, and accelerate the transition to clean transportation.

April 30 - California Air Resources Board

Aerial view of Freeway Park cap park over I-5 interstate freeway in Seattle, Washington at night.

Congress Moves to End Reconnecting Communities and Related Grants

The House Transportation and Infrastructure Committee moved to rescind funding for the Neighborhood Equity and Access program, which funds highway removals, freeway caps, transit projects, pedestrian infrastructure, and more.

April 30 - Streetsblog USA

"No Thru Traffic - Open Streets Restaurants" sign in New York City during Covid-19 pandemic.

From Throughway to Public Space: Taking Back the American Street

How the Covid-19 pandemic taught us new ways to reclaim city streets from cars.

April 30 - Next City