Shovel-Ready

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. Project Finance

    Defined by the International Project Finance Association (IPFA) ...
  3. Capital Project

    A long-term investment made in order to build upon, add or improve ...
  4. Advance Loss Of Profit (ALOP) Insurance

    An insurance policy that provides coverage for financial losses ...
  5. Public-Private Partnerships

    A business relationship between a private-sector company and ...
  6. Scope

    A project management term for the combined objectives and requirements ...
Related Articles
  1. Professionals

    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.
  2. Managing Wealth

    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.
  3. 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.
  4. Managing Wealth

    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.
  5. Markets

    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?
  6. Markets

    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.
  7. Markets

    10 Ways to Improve Cash Flow in Construction

    Improving cash flow in construction requires some sector-specific strategies.
  8. Financial Advisor

    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 ...
  9. Markets

    What Does Infrastructure Mean?

    Examples of infrastructure include mass transit, communication, sewage, water and electric systems, plus roads, bridges and tunnels.
  10. Investing

    Understanding Net Present Value

    Learn how this value is used to determine the worth of a project.
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. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center