Construction News for the Week Ending June 26, 2026
Construction Industry Challenges Amid Rising Costs
Despite strong planning and construction activity, rising input costs, particularly for metals, lumber, and energy, remain a significant challenge for the construction industry. While developers are pushing forward with projects, particularly data centers, concerns about community pushback, infrastructure constraints, and potential oversupply persist.
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Virginia Approves $28.5 Billion Infrastructure Plan
Virginia’s Department of Transportation approved a $28.5 billion infrastructure plan, allocating funds for the next six fiscal years. The plan includes upgrades to over 4,300 road, bridge, rail, transit, and bicycle and pedestrian paths.
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Kentucky Central Utility Plant Project Approved
The Walsh-Turner joint venture, part of the Kentucky Infrastructure Partners, received approval to proceed with the $580 million Kentucky Central Utility Plant Project at the University of Kentucky. The project, financed through tax-exempt bonds and other funding sources, includes the design, construction, and operation of a new central utility plant, upgrades to the district energy distribution systems, and backup power infrastructure.
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Chicago City Council to Renovate Greyhound Terminal for $19.2 Million
The Chicago City Council voted to purchase and renovate a former Greyhound bus terminal for $19.2 million, preserving it from potential sale or demolition. The city will finance the project by expanding a tax increment financing district. The renovation, supported by advocates and the Chaddick Institute, aims to modernize the facility and improve accessibility for the growing number of intercity bus travelers.
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Construction Starts Surge 34.1% in May
Construction starts jumped 34.1% in May, driven by megaprojects in healthcare, manufacturing, utilities, and data centers. While manufacturing and institutional construction saw significant gains, commercial construction remained flat, with declines in hotel and warehouse construction.
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FERC Orders Improve Grid Interconnection for Data Centers
FERC found that major grid operators’ rules for large load interconnections were inadequate and issued orders to address five issues. These orders aim to improve the interconnection process for data centers, ensuring fair cost allocation and transparency for ratepayers. The decision was driven by a surge in data center development and aims to provide greater cost clarity for utilities and prioritize financeable projects for developers.
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Carollo to Manage Ophir Water Plant Phase 1 Construction
Carollo Engineers will manage construction on phase 1 of the Ophir Water Treatment Plant in Placer County, California. The $210 million project will add 10 million gallons per day of treated water capacity, alleviating demand on existing facilities. The plant will support up to 30 million gallons per day of treatment capacity once complete.
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Virginia’s $28.5 Billion Infrastructure Plan
Virginia approved a $28.5 billion infrastructure plan, allocating funds for the next six fiscal years. The plan includes upgrades to over 4,300 road, bridge, rail, transit, and bicycle and pedestrian paths.
To read more, click here.
Jacobs to Advise on $1.7B Albany Health Lab
Jacobs will serve as a technical advisor for the construction of a new $1.7 billion public health lab in Albany, New York. The Wadsworth Center, a five-story facility, will consolidate multiple lab sites and enhance New York’s public health readiness and research capacity. Construction is expected to be completed by 2030.
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Torrance Groundwater Desalter Expansion
The Torrance Groundwater Desalter expansion project, a $185 million initiative by the Water Replenishment District of Southern California, aims to nearly double the facility’s drinking water production capacity to 7,100 acre-feet annually. The project, funded by various grants and loans, is expected to be completed by October 2028.
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Highmark Stadium Completion
Highmark Stadium, a $2.1 billion project in Orchard Park, New York, is complete after three years of construction. The stadium, built by a Gilbane-Turner joint venture, features a 60,108-seat capacity, a 360-degree canopy, and a snow-melt system. The project met its minority- and women-owned business contracting goals, paying over $490 million to MWBE participants.
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$1.86 Billion Emergency Relief for Disaster-Damaged Infrastructure
The U.S. Department of Transportation will provide $1.86 billion in emergency relief funding to repair transportation infrastructure damaged by recent natural disasters, including $908 million for Hurricane Helene damage. The remaining funds will support ongoing storm damage recovery across the country.
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DOE to Loan $17.5B for 10 Nuclear Reactors
The U.S. Department of Energy will provide up to $17.5 billion in loans to support the development of 10 nuclear reactors at five sites. The loans, facilitated by DOE’s Office of Energy Dominance Financing, aim to accelerate project timelines and revive the nuclear supply chain. While some praised the initiative, others expressed skepticism about the funding’s adequacy and the lack of concrete construction contracts.
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Skillit Partners with DPR and Suffolk to Enhance Worker Network and AI Platform
Skillit, a contech firm with a large network of vetted tradesworkers, has partnered with DPR Construction and Suffolk Technologies. The partnership will help Skillit grow its worker network and improve its AI-powered platform, which connects contractors with skilled tradespeople. This collaboration aims to address the construction labor crisis by providing a more efficient and effective hiring process.
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Texas Judge Vacates Davis-Bacon Act Provisions
A Texas judge vacated provisions of the Davis-Bacon Act implemented by the Biden administration, extending prevailing wage rules to subcontracted employees beyond construction workers. The Associated General Contractors of America (AGC) challenged these provisions, arguing they were an overreach of executive power. While the judge sided with AGC, another challenge regarding the method for determining prevailing wages remains in court.
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Gilbane’s 2025 Revenue Surge: 13% Growth with Focus on Safety and AI
Gilbane reported $8.7 billion in revenue in 2025, a 13% increase from 2024, driven by its integrated approach to building lifecycle services. The company’s 62-page annual report highlighted its focus on safety, sustainability, and AI integration. CEO Ed Broderick emphasized Gilbane’s unique ability to provide end-to-end solutions across the entire building lifecycle, leveraging its size, scale, and in-house expertise.
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U.S. Metro Housing Growth: Texas Leads
Housing units in U.S. metropolitan areas increased by 6.6% between 2020 and 2025, with Texas experiencing the most growth. While large metros like New York, Chicago, and Los Angeles added housing, the growth was slower compared to Texas.
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