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Construction News for the Week Ending July 31, 2026

Featured image for article: Construction News for the Week Ending July 31, 2026

Jennings Sues for Harassment and Retaliation at Hanford

Madalyn Jennings, the only woman apprentice electrician at the Hanford Vit Plant, filed a lawsuit against her former supervisor, George Elgin, and Bechtel. The lawsuit alleges persistent sexual harassment, retaliation, and a lack of reasonable accommodations, leading to Jennings’ and her husband’s termination. The construction industry has a history of harassment and discrimination, particularly against women.

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AI’s Impact on AEC: Automating 39% of Nonphysical Work

A new McKinsey report suggests that AI will significantly impact the AEC industry, automating up to 39% of nonphysical work in construction. The report advises firms to leverage AI to transform end-to-end processes, focusing on proprietary data and workflows. While AI can automate certain tasks, it won’t eliminate jobs entirely, and firms should prioritize high-value workflows and consider building or buying AI solutions based on their expertise.

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BWI Runway 10-28 Rehabilitation Project

BWI Thurgood Marshall Airport’s longest runway, Runway 10-28, will undergo rehabilitation work from July 19 to October 8. The project, led by Allan Myers and P. Flanigan & Sons, includes milling, paving, and upgrading the electrical system for LED lighting.

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Google to Boost CapEx to $205B in 2026 for AI Demand

Google plans to increase capital expenditures to $205 billion in 2026 to meet rising demand for compute capacity, driven by enterprise AI adoption. This increase in spending reflects a broader trend among tech giants investing heavily in AI infrastructure. Despite facing challenges like power constraints and token consumption costs, enterprises are increasingly leveraging AI across various workflows.

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Skanska’s LAX Project Enhances Access, Reduces Congestion

Skanska completed a $380 million project at Los Angeles International Airport, improving public transportation access and reducing congestion. The project, part of LAX’s $5.5 billion Landside Access Modernization Program, included roadway improvements and utility relocation. Skanska surpassed its goals for small and local business participation, exceeding targets for awards to various business categories.

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Robert Dillard Appointed CFO at Gilbane

Robert Dillard has joined Gilbane as CFO, succeeding Robert Murray who is retiring. Dillard, previously CFO at KB Home, brings extensive experience from companies like Sonoco and Stanley Black & Decker.

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U.S. Hotel Construction Trends in Q2 2026

In the second quarter of 2026, the U.S. hotel construction pipeline saw a decline across all phases, with the upper midscale and upscale segments leading the pipeline. Dallas had the largest hotel construction pipeline, while Phoenix is expected to lead new hotel openings for the remainder of 2026.

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Giants Expand Training Center in New Jersey

The New York Giants are expanding and renovating their Quest Diagnostics Training Center headquarters in East Rutherford, New Jersey. The project, designed by EwingCole and built by Natoli Construction, will add 93,500 square feet and renovate 46,000 square feet, including an expanded locker room, weight room, and sports medicine facilities. The expansion aims to improve player, coach, and staff well-being and is expected to be completed before the 2028 season.

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Massachusetts DOT Seeks Bids for Fall River Waterfront Development

The Massachusetts DOT is seeking bids for a 20-acre waterfront development in Fall River, aiming to generate $1 billion in private investment. The project, located along the Taunton River, will create up to 1,400 new homes and a mixed-use district with commuter rail access. The site, created by the Route 79/Davol Street Corridor Improvements Project, is one of New England’s largest waterfront redevelopment opportunities.

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Granite Secures $50M Spillway Contract at Tiger Creek Dam

Granite Construction won a $50 million contract to replace the spillway at PG&E’s Tiger Creek Regulator Dam in Amador County, California. The project, part of the Mokelumne River Hydroelectric Project, aims to enhance dam safety and operational reliability. Granite’s scope includes building a new spillway, installing a temporary cofferdam, and decommissioning the existing structure, with completion expected by May 2028.

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Amazon Expands U.S. Network with New Facilities in NY and TX

Amazon is expanding its U.S. network with new facilities in New York and Texas. The company is planning a 4 million-square-foot operations facility in New York and a distribution center in Texas, both equipped with advanced technology.

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Trump Unveils $22.5B Dulles Airport Revamp

President Trump announced a $22.5 billion overhaul of Washington Dulles International Airport, including new concourses, gates, and a U-shaped train system. The project, overseen by the USDOT, MWAA, and United Airlines, will be financed through municipal bonds and public-private partnerships.

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Fed Holds Interest Rate Steady at 3.5%-3.75%

The Federal Reserve held the main interest rate steady at 3.5% to 3.75% after a two-day meeting, with a 9-3 vote. Chairman Kevin Warsh emphasized the Fed’s commitment to price stability and its decision to be more opaque in communications to allow markets to respond directly to economic data. Despite the steady rate, the Fed remains focused on easing inflation, particularly due to elevated energy prices driven by supply shocks.

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Amtrak’s Frederick Douglass Tunnel Construction Underway

Amtrak’s $6 billion Baltimore & Potomac Tunnel Replacement program is progressing, with construction on the new Frederick Douglass Tunnel underway. To address challenges, the project scope was adjusted, eliminating an intermediate ventilation facility and raising the tunnel’s track alignment. The new tunnel, expected to open in 2036, will alleviate congestion on the Northeast Corridor.

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Turner Building Cost Index Rises 5.2% Amid Sector Demand

The Turner Building Cost Index rose 5.2% year over year in the second quarter, driven by high demand in sectors like data centers and semiconductors. While monthly costs have fluctuated, contractors remain concerned about material costs, tariff policies, and supply-chain conditions.

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Procore Acquires DroneDeploy for $845 Million to Boost AI and Data Capabilities

Procore is acquiring DroneDeploy for $845 million in cash to enhance its AI strategy and data capabilities. The acquisition will combine Procore’s vast construction data with DroneDeploy’s visual intelligence platform, enabling builders to utilize cameras, drones, and robots for jobsite evaluation and automated responses. This move aligns with Procore’s strategy of using acquisitions to accelerate its AI capabilities, following its previous acquisition of Datagrid.

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Boston’s Flood Protection Plan: Over 20 Projects, $10 Billion Cost

The U.S. Army Corps of Engineers released a feasibility study outlining over 20 infrastructure projects to protect Boston from coastal flooding and sea level rise. The federal government could cover 65% of the estimated $10 billion cost, with the remaining 35% potentially coming from city funds, state funds, philanthropy, or the private sector. Boston is exploring various financing options, including resilience improvement districts and taxes on tourism infrastructure, to secure the necessary funds.

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