Construction News for the Week Ending May 1, 2026
Granite Q1 Earnings: Border Infrastructure and Data Centers
Granite Construction’s first-quarter earnings call highlighted the company’s growing focus on border infrastructure and data center projects. The company expects these sectors to contribute significantly to its revenue, with federal contracts projected to reach 15% and data center projects another 10%. Despite a canceled highway project, Granite’s backlog increased, reflecting a robust bidding environment across various sectors.
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Red Line Extension Groundbreaking
The Chicago Transit Authority and Walsh-Vinci Transit Community Partners broke ground on the $5.7 billion Red Line Extension, extending rapid rail transit to the city’s Far South Side. The 5.5-mile extension, with four stations and a new rail yard, will create over 12,500 construction jobs and is projected to start station construction in 2027.
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Multifamily Construction Rises, Permits Fall in March
New multifamily construction rose in March, with a seasonally adjusted rate of 446,000 units, a 13.5% increase year-over-year. However, multifamily building permits dropped 23.5% month-over-month and 5.3% year-over-year, indicating potential future challenges. Overall housing permits also fell, down 10.8% from February and 7.4% from the previous year.
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One Water Project in Hillsborough County
Crews are working on the One Water – South Wastewater Conveyance and Treatment Project, a $1.2 billion project in Hillsborough County, Florida. The project, led by Garney, includes a new wastewater treatment facility, pipeline infrastructure, and a super lift station, with completion expected by 2030.
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ORDNext Expansion Begins Vertical Construction
Chicago O’Hare International Airport’s expansion project, ORDNext, has reached a milestone with the start of vertical construction on the new 19-gate Concourse D. The $1.45 billion project, valued at $1.45 billion, will include lounge space, retail, dining, and a children’s play area. The expansion, approved in 2018, aims to create over 3,800 construction jobs.
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Gateway Development Commission Awards Package 1C Contract
The Gateway Development Commission awarded the Package 1C contract, advancing the final tunneling segment beneath the Hudson River. This marks the third of three construction packages for new tunnel tubes, with work progressing on the Palisades and Manhattan Tunnel Projects.
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Fed Holds Rates Steady Amid Iran War Concerns
The Federal Reserve held the main interest rate steady, citing risks to inflation and jobs due to the ongoing Iran war. Fed Chair Jerome Powell acknowledged the economic outlook’s uncertainty, particularly with rising energy prices potentially increasing inflation. Despite the challenges, Powell emphasized the U.S. economy’s resilience in weathering various shocks.
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ASCE Warns of Threats to Innovation and Safety from National Science Board Dismissal
The American Society of Civil Engineers (ASCE) warns that the dismissal of the National Science Board threatens American innovation and safety. The National Science Foundation (NSF) funds critical research that shapes infrastructure design and protection, including improvements to seismic performance and extreme weather resilience.
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Kiewit Removed from Baltimore Key Bridge Project
Kiewit, the design-build contractor for the replacement of Baltimore’s Key Bridge, has been removed from the project due to cost disagreements. The Maryland Transportation Authority (MDTA) cited Kiewit’s proposal for Phase 2 construction as unacceptable, exceeding the state’s independent cost estimates. Despite the change, work on the project will continue, with Kiewit fulfilling its contractual obligations for Phase 1.
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Granite Acquires Kenny Seng Construction
Granite Construction acquired Kenny Seng Construction, a Provo, Utah-based infrastructure contractor, to expand its service offerings in Utah. The acquisition includes a hard rock quarry and aligns with Granite’s “home market” strategy and focus on mergers and acquisitions.
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U.S. Hotel Construction Pipeline Declines in Q1 2026
The U.S. hotel construction pipeline decreased by 5% in Q1 2026 compared to Q1 2025, with a total of 6,020 projects and 705,825 rooms. Despite the decline, the luxury segment reached a record-high project count of 102 hotels. Dallas led the U.S. with the largest hotel construction pipeline, while Phoenix is forecasted to have the most hotel openings in 2026.
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Addressing Worker Misclassification in Construction
Worker misclassification, particularly in the construction industry, leads to significant financial losses for workers and creates an unfair advantage for unscrupulous employers. This practice distorts bidding processes, putting pressure on compliant businesses to cut costs and potentially leading to a “race to the bottom” on labor standards. The Economic Policy Institute suggests leveraging public procurement processes, such as project labor agreements, to enforce stronger labor standards and level the playing field.
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Georgia’s $10.8B SR 400 Revamp Project
A $10.8 billion project to reshape State Route 400 in Georgia is underway, led by a joint venture of ACS Infra, Acciona, and Meridiam. The project will add express lanes, improve connections at the I-285/SR 400 Interchange, and incorporate technology systems to optimize traffic flow and safety.
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$1.1 Billion Funding for Railroad Crossing Safety
The U.S. Department of Transportation opened a $1.1 billion funding round to improve safety at railroad grade crossings. Eligible projects include installing safety devices, relocating tracks, and creating road separation.
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NABTU and Microsoft Launch AI Training for Construction Workers
North America’s Building Trades Unions (NABTU) and Microsoft are partnering to provide AI training to construction workers. The program, which focuses on AI literacy, data security, and practical applications, aims to improve efficiency in apprenticeship programs and jobsite use cases. While AI won’t replace craft labor, it can support decision-making and knowledge access in the construction industry.
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Construction Begins on $280M Health Sciences Building
Messer Construction and the University of Louisville have begun construction on a $280 million Health Sciences Building. The six-story, 257,000-square-foot facility will connect the university’s schools of dentistry, medicine, nursing, and public health and information sciences, and is expected to be completed in 2029.
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National COSH’s 2026 “Dirty Dozen” List
National COSH released its 2026 “Dirty Dozen” list, highlighting 12 employers, including Revoli Construction and D.R. Horton, for unsafe practices. Revoli Construction faced allegations of trenching violations, including a fatal collapse, while D.R. Horton was cited for unsafe conditions during ICE enforcement actions. The list aims to hold employers accountable and empower workers.
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Shift to Distributed Data Centers for AI
Pete Sacco, CEO of PTS Data Center Solutions, predicts a shift from large data centers to clusters of smaller, distributed data centers for AI inference work. This new model, championed by Sacco’s company Gray Wolf Data Centers, involves a distributed autonomous organization of independently owned data centers, each with its own power source. The first data center, located in Connecticut, will utilize a waste-to-energy plant to produce electricity at a competitive rate.
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Travis Mross Promoted to President at Zachry Construction
Zachry Construction promoted Travis Mross to president, effective immediately. Mross, who joined the company in 2000, will focus on client service, strategic growth, and operational excellence.
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