Officials worry if bond amounts will be sufficient

"Crude oil is at an all-time high, and oil is bought and sold in dollars," Thoden said. "You can't move or make construction materials without burning some fossil fuels, and that starts prices going up."

Reports confirm that governmental entities are struggling to keep up with construction costs. Officials with the City of Houston's Capital Improvements Program report that they have delayed dozens of projects in recent weeks as they try to deal with rising costs.

James Tillman IV, director of Houston's Capital Improvement Program, said his projects have been hard hit by the cost of steel and cement. He said that in previous years, his department could build a "pretty nice fire station" for $3 million, but that cost has jumped to $5 million.

In the last year, he said, the cost of rebar has jumped from $700 a ton to $1,000 a ton.

Texas Department of Transportation (TxDOT) engineers recently told Bell County Commissioners that they are facing a future shortage of funds as they upgrade a portion of Interstate 35 through the Temple area.

TxDOT District Engineer Richard Skopik gave a briefing to city and county leaders this week, pointing to an assortment of reasons the transportation entity is in dire need of greater funding. Skopik emphasized that while projects under construction are not in danger of being canceled, future segments may be postponed.

And the problem is not just stateside. Contractors in places like Pakistan, India and oil-rich Dubai have recently canceled major projects because of increases in the cost of rebar and cement.

Thoden said there does not appear to be any relief in sight for governments that approve projects years and sometimes decades ahead of the actual construction. Thoden added that project managers would do well to stay abreast of the most recent cost figures for construction materials and budget accordingly.