DEFINITION of 'Shovel-Ready'

A term widely used by President Barack Obama to describe a construction project that could be started as soon as it received funding. A truly "shovel-ready" project should already be planned and permitted. This term is typically used to describe infrastructure projects such as improvements to roads, bridges, highways and public transportation.

BREAKING DOWN 'Shovel-Ready'

Obama's 2009 stimulus package, passed in an attempt to spark economic recovery from the Great Recession, was supposed to fund numerous shovel-ready projects and create jobs. It was also supposed to jump-start the struggling construction industry. Time-consuming regulatory requirements delayed many projects, however, while others never happened, which subjected the president to much criticism.

RELATED TERMS
  1. Shovel Ready

    A phrase describing the status of a project that is considered ...
  2. Capital Project

    A long-term investment made in order to build upon, add or improve ...
  3. Project Finance

    Defined by the International Project Finance Association (IPFA) ...
  4. Project Management

    The planning and organization of an organization's resources ...
  5. Scope

    A project management term for the combined objectives and requirements ...
  6. Advance Loss Of Profit (ALOP) Insurance

    An insurance policy that provides coverage for financial losses ...
Related Articles
  1. Insights

    Can Infrastructure Spending Really Stimulate the Economy?

    Public infrastructure spending rarely stimulates long-term positive growth for the economy, even in times of recession...
  2. Small Business

    What Exactly Do Project Managers Do?

    While supervision is one important part of the job, a lot more goes into project management than just watching everyone work.
  3. Personal Finance

    Project Manager: Job Description & Average Salary

    Discover more about the specific tasks that project managers are responsible for and the average salary that can be expected in such a position.
  4. Investing

    2 Top Long-term Infrastructure Stocks (PWR, GVA)

    Enormous sums will eventually be spent to upgrade U.S. Infrastructure. When it is, these companies should benefit.
  5. Personal Finance

    Project Manager: Career Path & Qualifications

    Learn more about what project managers job, the qualifications necessary for the position and the most common careers for these professionals.
  6. Investing

    Would an Infrastructure Bank Help America's Faltering Roads and Bridges

    Politicians are now calling for a National Infrastructure Bank to create jobs. But would a bank provide adequate funding to fix our roads and bridges?
  7. Investing

    The 2016 Infrastructure Report: 4 Ongoing Global Projects

    Discover several of the most costly infrastructure projects under construction around the world in 2016, and learn more about their intended benefits.
  8. Personal Finance

    10 Ways to Improve Cash Flow in Construction

    Improving cash flow in construction requires some sector-specific strategies.
  9. Managing Wealth

    What's a Hurdle Rate?

    Hurdle rate has two meanings. In the business world, a business typically makes a decision on a capital project based on the net present value approach. To determine the net present value, the ...
  10. Investing

    Build Your Portfolio With Infrastructure Investments

    Mutual funds devoted to keeping roads, structures and communities safe can make you money.
RELATED FAQS
  1. How do companies calculate the estimated duration of a new project?

    Learn about some of the common methods used by companies to estimate the duration of a new project, including those with ... Read Answer >>
  2. How much debt is too much when calculating capital budgeting?

    Learn how companies determine how much debt is acceptable when funding a new project by using the net present value to estimate ... Read Answer >>
  3. How do you use the profitability index rule when scoping out a project?

    Understand the parameters of the profitability index rule and how this rule is used in corporate capital allocation to determine ... Read Answer >>
  4. Why is a bank guarantee important in a long-term project contract?

    Understand what a bank guarantee is and learn why it is so important to the risk and safety of a long-term project contract Read Answer >>
  5. Why is President Obama hesitant to approve the Keystone XL Pipeline project?

    Find out how President Obama's hesitancy over the Keystone XL pipeline project is motivated by political pressure from two ... Read Answer >>
  6. How do you use internal rate of return to calculate a capital budget?

    Learn about how the internal rate of return is used in the creation of a capital budget along with net present value and ... Read Answer >>
Hot Definitions
  1. Cash Flow

    The net amount of cash and cash-equivalents moving into and out of a business. Positive cash flow indicates that a company's ...
  2. PLUS Loan

    A low-cost student loan offered to parents of students currently enrolled in post-secondary education. With a PLUS Loan, ...
  3. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  4. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  5. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  6. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
Trading Center