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construction dive
Skanska To Begin Work On $450M Bridge To Nc’S Outer BanksSkanska USA will soon begin work to replace the Lindsay C. Warren Bridge over the Alligator River in North Carolina’s Tyrrell and Dare counties, the state DOT announced last week.
The American arm of the Sweden-based builder and developer won a $450 million contract to replace the 65-year-old swing-span bridge with a two-lane, fixed-span bridge just north of the current one.
Workers will begin driving pilings in the coming weeks, the Jan. 8 announcement said. Other activities, such as clearing, will begin soon after. The contract with Skanska says the bridge will open to traffic in the fall of 2029, and the demolition of the old bridge will begin in spring 2030.
The current bridge is the main access for vehicles to the Outer Banks barrier islands from the west via U.S. Route 64, as well as a critical hurricane evacuation route, per the release. The aging span is regularly maintained, North Carolina DOT said, but is prone to mechanical failures that can force motorists onto a 99-mile detour.
Tourism is the No. 1 industry of the Outer Banks with more than 5 million visitors each year, according to the Outer Banks Chamber of Commerce.
The new bridge will attempt to alleviate those forced detours for motorists as well as improve river traffic for the more than 4,000 boats that travel through the swing span annually.mixed-use
Jan 14, 2025
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Total Commercial Backlog At Nearly 2-Year LowThe slight decline in backlog underscores lingering challenges for contractors, particularly in the commercial and institutional sectors, where backlog hit its lowest point in nearly two years.
But contractor confidence paints a more optimistic picture. Builders’ expectations for sales growth are now at their highest level since early 2022. The sentiment reflects contractors’ belief in a near-term pickup in activity, particularly in the first half of 2025.
Nevertheless, ABC’s chief economist also cautioned that momentum could be short lived, should interest rates remain elevated.
“If rates remain higher for longer, backlog may remain subdued, especially in the struggling commercial and institutional category,” said Anirban Basu, ABC chief economist.
The Federal Reserve appears unlikely to continue aggressive rate cuts in 2025, according to its most recent meeting in December. That doesn’t bode well for the backlog overall, said Basu.
“While backlog inched lower in December, contractors broadly expect construction activity to pick up in the first half of this year,” said Basu. “Despite that confidence, the path of interest rates will play a critical role in industry performance in 2025.”mixed-use
Jan 14, 2025
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Biden Vows To Speed Permitting For Data Centers, Clean EnergyDevelopers selected to build on federal sites will be required to bring online enough clean energy generation resources to match the full electricity needs of their data centers, the statement said.
To support these efforts, the DOE will take steps to promote distributed energy resources and support the safe and responsible deployment of nuclear energy, among other actions.
Agencies will prioritize and dedicate staff toward permitting these projects in a timely manner, and the DOD will immediately undertake environmental analyses that will improve the speed and accuracy of future site-specific reviews, the order said. Agencies will identify further opportunities to support expeditious permitting at these sites, such as by applying or establishing “categorical exclusions” — the fastest form of review under the National Environmental Policy Act — for infrastructure that does not significantly affect the environment.
The order also seeks to accelerate the upgrade and development of transmission lines around those sites and facilitate interconnection of AI infrastructure to the electric grid.
“We will not let America be out-built when it comes to the technology that will define the future, nor should we sacrifice critical environmental standards and our shared efforts to protect clean air and clean water,” Biden said in the news release.
As businesses increasingly rely on artificial intelligence, construction of new data centers has boomed. Current projects include a $1 billion Microsoft data center in Indiana, a $800 million Meta data center in Alabama and a $630 million digital data center in Northern Virginia.
To meet the large energy demands of these facilities, tech giants are increasingly turning to nuclear power. That connection between data centers and nuclear power plants should continue to strengthen, Gordon Dolven, director of data center research at CBRE, a Dallas-based commercial real estate services firm, told Construction Dive in November.
“This role is expected to grow, especially with advancements like small modular reactors,” said Dolven. “[These] offer scalable and flexible solutions to support future energy needs.”mixed-use
Jan 14, 2025
construction dive
Contractors Breathe ‘Sigh Of Relief’ As Project Stress DropsThe construction industry posted a significant decline in project stress last month, showing much-needed progress after a volatile year, according to the latest data from Cincinnati-based ConstructConnect.
The Project Stress Index, a measure of construction projects that have been paused, abandoned or have a delayed bid date, fell 7.4% in December. That figure still remains 5.6% above 2021 levels, but far below its January 2024 peak, said Michael Guckes, chief economist at ConstructConnect.
“Year-end 2024 readings were very encouraging as they confirmed just how much progress has been made in the industry over the last year,” Guckes told Construction Dive. “Now that the Federal Reserve has begun to cut interest rates and with a pro-business presidential administration about to enter office, many in the financial and construction sectors appear to be breathing a sigh of relief.”
December’s decline in stress levels stemmed from sharp drops in delayed bid activity and project abandonments, according to ConstructConnect.
For example, delayed bid activity fell 10.8% in December, hitting a five-year low in the private sector. Project abandonments dropped 16.1% overall, with private sector abandonments declining 27.4% compared to the same period in 2023.
Public sector projects showed improvement as well, according to the data. Public projects put on hold fell 8.9% year-over-year, while public sector abandonments declined 3.6% over the same timeframe.
However, while bid delays and abandonments declined, on-hold projects increased by 6.2% in December, said Guckes. He attributed this to seasonal and administrative factors that typically accompany year-end transitions in the public and private sectors.
“December’s results marked a strong finish to the 2024 construction year,” said Guckes. “The forthcoming change in presidential administration, the recent cuts to the Federal Funds Rate, and with much of the banking world overcoming its worst fears about the commercial real estate market, stress levels are only slightly above 2021 levels.”mixed-use
Jan 14, 2025
construction dive
Bechtel’S Delayed Nasa Build Hits Milestone Amid Cost OverrunsBechtel's $1.3 billion launch pad project for NASA is one step closer to completion after a series of delays.
The Reston, Virginia-based contractor announced that it successfully lifted and placed the first tower module, Tower Module 4, on the space agency’s Mobile Launcher 2 project at the Kennedy Space Center in Florida, according to a Jan. 6 news release.
But the company’s announcement came after an August 2024 report from NASA’s Office of Inspector General that detailed repeated extensions of the project’s timeline and budget and placed much of the blame on Bechtel. The document followed a previous audit the OIG conducted in June 2022.
The report pins the original ML2 contract, awarded to Bechtel in June 2019, at $383 million, with scheduled completion by March 2023.
Once the structure is complete, it will be integral to NASA’s mission to return humans to the Moon via its Artemis program, with a focus on Artemis IV, which will send astronauts to live in the first lunar space station, known as Gateway.
After delays during the COVID-19 pandemic, NASA estimated in December 2023 that the contract had grown to $1.3 billion, with completion pushed out to November 2026, according to the document. Then in June 2024, the agency told Congress that total project costs — not just Bechtel’s portion of the contract — would be $1.8 billion, with completion delayed until September 2027.
The Inspector General concluded in its report that the project is now likely to exceed $2.7 billion — with $2.5 billion going to Bechtel — more than three times the project’s initial total estimate. It also projected that completion of the build won’t come until 2029, after the current Artemis IV launch date of September 2028.
“Our projections are based on the substantial cost growth that the Bechtel contract has incurred over the last 3 years, past performance issues observed during design with the production of detailed drawings for steel fabrication and management of the launcher’s weight, and the significant amount of construction work that remains,” the OIG wrote.
However, Bechtel forecasts a completion date of November 2026, while NASA said in a response to a draft report that it expects the project to be finished by 2027.
The OIG acknowledged that NASA officials took issue with some of its conclusions.
In response to a July draft of the final report, NASA’s Exploration Systems Development Mission Directorate said, “ESDMD disagrees with the OIG-projected ML2 cost estimate of $2.7 billion. Simply using a straight-line extrapolation, as the OIG did, does not accurately reflect the current development situation.”
The same document praised Bechtel’s work at another point, stating, “Recently, Bechtel completed a critical integration milestone two weeks ahead of schedule, marking a critical advancement in its construction and assembly capabilities within the Artemis Campaign.”
Bechtel began construction of the launch site in August 2023. It responded to the OIG report on Sept. 26, 2024, where it noted that the project’s completion date has remained unchanged for the last two years. It also said that it was inaccurate to attribute all $594 million of contract delays to Bechtel’s performance, alongside what Bechtel claims are several other factual errors.
“The cost increases and schedule delays since the start of the ML2 project have been multi-faceted, resulting from changes to the contract — both directed and circumstantial (ex. COVID-19 impacts and weather-related delays) — as well as impacts related to [Bechtel National Inc.’s] performance,” Bechtel said in the response.
The company told Construction Dive in an emailed statement that it found the report deeply disappointing, and that it has approached the project with safety in mind.
“While we understand that the OIG is charged with issuing its view of NASA’s and Bechtel’s progress relative to cost and schedule, our overriding commitment remains on delivering a safe and high-quality product,” the statement said.
The placement of the first tower module marked the beginning of a new phase of rapid vertical installation of the remaining tower modules, which the builder will stack successively on top of one another over the coming months. Once complete, the structure will reach its full height of 38 stories.
NASA and Bechtel are using a modular approach to the construction of the tower, which the contractor claims reduces risks to workers by building the structure lower to the ground.
Module 4, which weighed over 550,000 pounds, had to be lifted by a crane and was built from components delivered by over 110 trucks, according to the news release. The tower took over a month to assemble.mixed-use
Jan 14, 2025
construction dive
Dol’S Independent Contractor Rule Evades Trucking Company’S Injunction BidDOL’s rule has so far prevailed in the courts despite several attempts to block it from taking effect. Riggs’ decision joins that of a Georgia federal judge who similarly dismissed a challenge to the final rule by a group of freelance writers and editors last October. The plaintiffs in the case, Warren v. U.S. Department of Labor, have since appealed that decision to the 11th U.S. Circuit Court of Appeals.
A separate challenge brought last year by Louisiana transportation workers who sought a temporary restraining order and preliminary injunction of the rule also failed when a judge denied both motions. Plaintiffs in that case, Frisard’s Transportation v. U.S. Department of Labor, appealed to the 5th Circuit and the court has scheduled oral argument for February.
Yet another challenge, Coalition for Workforce Innovation v. Su, is the continuation of a longstanding legal fight opposing the Biden administration DOL’s decision to replace its previous independent contractor standard with the current one proposed in the 2024 final rule. The case is ongoing.
Announced more than one year ago, the final rule sought to expand the Fair Labor Standards Act’s wage-and-hour protections to workers whom the agency believes are misclassified as independent contractors. The rule established a “totality-of-the-circumstances” framework for evaluating whether a worker is properly classified as an independent contractor.
The Colt & Joe Trucking plaintiffs argued that they had taken steps to avoid litigation resulting from the rule. But Riggs held that these assertions did not give rise to standing “because they are not specific [facts], but rather conclusory assumptions about Plaintiff’s future.”
Riggs also found that DOL did not act from a faulty legal premise when promulgating the final rule and properly accounted for the costs to regulated parties when doing so.mixed-use
Jan 13, 2025
construction dive
Ny Mandates Contractor Registration For Publicly Funded ProjectsA new law in New York will directly affect the bidding process for contractors and subcontractors.
As of Dec. 30, 2024, contractors and subcontractors on public projects and private projects under Article 8 will be required to register with the New York State Department of Labor before they can bid on or perform work. After a contractor is approved, a certificate of registration will be issued electronically and is valid for two calendar years.
The initiative is meant to ensure compliance with labor standards and fair practices throughout New York’s construction industry, said Kathleen Bloss, partner at The Bonadio Group, a Rochester, New York-based accounting and consulting firm.
Here, Bloss talks with Construction Dive about the types of projects the law covers, the steps contractors must take to comply and the ways it aims to improve safety in construction.
This interview has been edited for brevity and clarity.
KATHLEEN BLOSS: The new registration requirements apply to contractors and subcontractors performing work on public projects or private projects that may have a portion of public funding or subsidy — for example, renewable energy systems, broadband expansions, climate-related projects or roadway excavations. A private contract is covered under the requirements if public funds are paying more than 30% of total costs and the project costs more than $5 million.
Contractors must visit the NYSDOL Public Work Registry Website to begin their registration.
Contractors and subcontractors must provide detailed identifying information about their business, its officials, workers compensation and disability insurance, previous labor law violations and apprenticeships. Any contractor or subcontractor who bids on or begins work on a covered project after Dec. 30, 2024, without being registered with NYSDOL will be subject to fines and stop work orders.
Contractors failing to comply with the new requirements face penalties of up to $1,000 per infraction. They also risk project interruptions, as unregistered contractors or subcontractors may face work stoppages if they do not comply. Unregistered contractors cannot bid on public work projects.
The benefits to contractors in New York’s construction industry relate to improved credibility and a streamlined process. Being listed on the NYSDOL registry can enhance trust with clients and partners. In addition, pre-registration reduces administrative barriers when bidding on new projects.
For consumers, the registry ensures that contractors adhere to labor laws and safety standards, reducing risks for consumers and workers alike. Ensuring that contractors are complying with prevailing wage and other labor standards will ensure that contractors are paying their laborers wages and benefits at fair rates that are not less than what others locally pay their workers for similar projects.
Contractors are encouraged to obtain affirmative representations from project owners regarding whether they are receiving public funds or if the project is considered a covered project prior to bidding. If a project owner is unsure if their project is a covered project, they can check with the Public Subsidy Board to determine the project’s status and if it is covered by prevailing wage requirements.
The project owner has a responsibility to verify the registration status of all contractors and subcontractors before they begin their work. A contractor has the same responsibility to verify the registration status of any subcontractors hired before they begin their work.mixed-use
Jan 13, 2025
construction dive
December 2024 Economic RoundupContractors ended 2024 on a cautiously optimistic note, as the latest construction data revealed resilience alongside lingering challenges.
Backlog held steady at 8.4 months as contractors expressed some optimism about private construction prospects. The possibility of lower borrowing costs and clearer policy direction following the presidential election buoyed confidence.
Groundbreakings also gained momentum to close the year, with starts gaining 5% in December to an annualized rate of $1.2 trillion, according to Dodge Construction Network. Public dollars continued to fuel infrastructure construction, particularly highway and bridges.
That offset some of the pressures from elevated interest rates, labor shortages and lending conditions. Many economists expect further rate cuts could unlock additional activity in 2025, though the Federal Reserve has signaled it may slow the pace of easing this year to balance inflation risks.
Meanwhile, the construction labor market showed signs of strain. Open construction jobs in November remained down 40% from the previous year, showing continued hiring difficulties.
Here, Construction Dive rounds up the latest key industry data.mixed-use
Jan 13, 2025
construction dive
Microsoft Plans To Pour $80B Into Cloud Data CentersCloud infrastructure, AI compute capacity and domestic politics coalesced in Smith’s post, which laid out a three-pronged plan for U.S. economic success centered around data centers, upskilling and technology exports.
“The incoming administration can strengthen these foundational elements, building on the work from President Trump’s first term,” Smith said, pointing to the 2019 American AI Initiative. “President Trump and Congress should expand on these efforts to support advancing America’s AI leadership.”
Microsoft has been growing its Azure public cloud empire at home and abroad.
In addition to breaking ground on a $3.3 billion Wisconsin facility last year, Microsoft launched its first data center region in Mexico and further expanded its cloud footprint in France, Germany and Sweden.
“We intend to invest more than $35 billion in 14 countries within three years to build trusted and secure AI and cloud data center infrastructure,” Smith said. “This is part of a global infrastructure that now reaches 40 countries.”
In September, the company partnered with investment firms Blackrock, MGX and Global Infrastructure Partners to amass $100 billion for data centers and supporting power infrastructure.
Microsoft isn’t operating in a vacuum. AWS and Google Cloud, the two other global cloud giants, are also pouring billions into AI infrastructure, driving massive growth in the data center market.
Big tech companies spent $180 billion on data center expansions and related infrastructure last year, according to Dell’Oro Group research. The firm told CIO Dive it expects some cooling in the coming months as cloud providers consolidate expansion plans.
But hunger for AI-optimized compute has only intensified.
Hyperscalers were on pace to deploy over 5 million AI accelerators in 2024, Dell’Oro Group found in its analysis of third quarter financials.
“Demand for accelerators has been growing at a breakneck pace as the hyperscalers race to deploy infrastructure for the training and inference of large language models,” Baron Fung, senior research director at Dell’Oro Group, said in the report.
Microsoft sees its success as dependent on a competitive technology ecosystem, Smith said in the blog post. “This includes our longstanding competitors, chip suppliers, applications companies, systems integrators, service providers, and the millions of software developers who use our products to create customized solutions,” he said.mixed-use
Jan 10, 2025
construction dive
Honolulu Rail Builders Sue Hart For $324MThis is just the latest in a string of lawsuits to arise on the project, according to Honolulu Civil Beat. In 2023, the Shimmick/Traylor/Granite team hired to build part of the Honolulu rail line sued HART, alleging that the agency failed to address problems with utility relocation, which caused expensive construction delays. HART later settled for $60 million.
The entire Skyline project was originally supposed to open by 2020, but the latest estimates put that finish date at 2030, according to Civil Beat. The nearly 19-mile elevated guideway system includes 19 stations and runs from East Kapolei to Kakaako.
Per Hitachi’s lawsuit, the city chose not to hire a single design-build contractor to develop the entire system “as is common in the rail industry.” Instead, Honolulu and HART awarded smaller design and construction contracts to numerous contractors.
However, HART “was not up to the task of coordinating the numerous contractors involved – a task vital to the project delivery system HART chose. HART’s failures in leadership and coordination resulted in extraordinary delays and cost overruns,” the lawsuit alleges.
Hitachi said it could not do its job until other contractors built the elevated guideway, stations and track, and alleges that it was forced to eat the costs of overruns. The JV further alleges that the city “delayed any good faith efforts to resolve HRH’s claims, no doubt to delay further public criticism of its Skyline project mismanagement.”
Honolulu officials did not respond to Construction Dive as of publication time, and HART declined to comment.
“HART appreciates the opportunity to respond, but at this time we are not able to discuss or comment on the active claim,” Joey Manahan, HART’s director of government relations and public involvement, said in an email.mixed-use
Jan 10, 2025construction dive
Turner Tops Out $260M Seatac Renovation ProjectTurner Construction has reached a new altitude on its $260 million expansion of C Concourse at Seattle-Tacoma International Airport.
The New York City-based contractor topped out the steel on the 226,000-square-foot structure, completing vertical construction, according to a Dec. 20 news release.
The six-story renovation project will add four levels to the existing building to provide enhancements for passengers. The upper floors will introduce expanded dining and retail options, additional seating and a 1,300-square-foot extension to the passenger waiting area, the contractor said in its release.
Key features include a rooftop photovoltaic array, a meditation room, a nursing room and two airfield observation decks.
Initially targeting LEED Silver certification, the project is on track to achieve LEED Gold, Turner said, due to its innovative integration of energy-efficient systems and sustainable elements.
“This project exemplifies how we can construct essential infrastructure that benefits both travelers and the environment,” said Bill Ketcham, vice president and general manager at Turner, in the release.
The project is scheduled for substantial completion in 2026.mixed-use
Jan 10, 2025construction dive
Data Center Boom Powers Rebound In Construction PlanningNonresidential construction planning rebounded in December, driven by a sharp uptick in data center and warehouse projects, according to Dodge Construction Network.
The Dodge Momentum Index, a benchmark that measures nonresidential construction planning, climbed 10.2% to close 2024. Commercial planning led the charge with a 14.2% increase, while institutional planning posted a more modest 2.5% gain, according to the report.
“Commercial activity rebounded strongly in December, thanks to a reacceleration in data center and warehouse planning activity,” said Sarah Martin, associate director of forecasting at Dodge Construction Network. “Overall, the strong performance of the Momentum Index this past year is expected to support nonresidential construction spending throughout 2025.”
On a year over year basis, the DMI jumped 19% compared to December 2023. Commercial planning surged 30% during that period, while institutional planning remained largely flat.
Data centers continue to play a pivotal role in that growth, according to Dodge, but the increase also had a broader base. Without data centers’ inclusion, commercial planning still would have grown 8%, while the overall DMI would have increased 5%.
A total of 32 projects valued at $100 million or more entered the planning phase in December. Major commercial projects included:
The largest institutional projects to enter planning included:mixed-use
Jan 09, 2025