Construction News for the Week Ending October 9, 2026
Momentum Index Rises 2.4% in September
Dodge Construction Network reports the Momentum Index rose 2.4% in September, driven by a 9.4% institutional planning jump including education and healthcare. Commercial planning fell 1.3%, offset by data centers; spending may strengthen late 2027.
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Sage Acquires Paperless Environments for Automation Expansion
Sage acquired Paperless Environments to expand construction automation and artificial intelligence services, aiming to connect finance, project, and jobsite teams. Dan Miller stated the move reduces manual work via accounts payable expertise.
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Federal Contractor Wage Increase Announced
The Department of Labor will raise federal contractor wages to $14.05 and tipped wages to $9.85, effective 90 days after Thursday’s notice. Executive Order 13658 applies to certain contracts from Jan. 1, 2015, to Jan. 29, 2022, not renewed after Jan. 30, 2022.
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HITT Begins $500M Rocket Motor Plant in Virginia
HITT Contracting began Avio USA’s $500 million, 900,000-square-foot solid rocket motor plant in Hurt, Virginia, for U.S. tactical missile programs. Construction ends in 2028; production starts in 2029.
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Anduril and Navy’s $6.6B Baltimore Shipyard
Anduril Industries and the U.S. Navy plan a $6.6 billion Arsenal-2 shipyard in Baltimore using ArsenalOS for Virginia-class submarine components. Operations start in 2030, creating over 3,100 jobs by 2034; Anduril invests $3.7 billion.
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DOT awards $426M for critical infrastructure projects
The Department of Transportation awarded $426 million via INFRA, part of the Infrastructure Investment and Jobs Act, for projects including Kentucky and Florida highway expansions. The funding follows airport investments and a Highway Trust Fund extension.
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Construction Growth Driven by Data Centers and Semiconductors
Data center and semiconductor projects drive construction volatility and growth, benefiting large firms, Guckes and Arias note. Costs rose in August, threatening margins amid cooling planning and supply risks, Raimond and Guckes warn.
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Suffolk Construction’s Sports Center of Excellence
Suffolk Construction launched a Sports Center of Excellence led by Matt Swaim, a former Nike executive. Will Gamba will manage preconstruction for the unit, which targets complex venues through improved planning and execution.
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Constellation Energy and Google’s 20-Year Nuclear Uprate Agreement
Constellation Energy and Google signed a 20-year agreement for 890 MW via nuclear uprates across six sites, backed by $4.3 billion, plus a 15-year 2,700 MW supply deal. The pact includes load-shaping and AI integration.
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Skanska Secures Major Education Contracts
Skanska secured three education contracts before Q3 ended: $163 million with University of Mary Washington, $110 million with Renton School District, and $78 million with an undisclosed client. It also began $67.1 million Phase 2 work at Sumner High School.
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Data Center Construction Continues Amid Scrutiny
Scrutiny over power, water, and community impact has not halted data center construction. State orders in Virginia, Pennsylvania, and Texas add complexity, but contractors like JE Dunn, HITT, and Mortenson report continued demand. Preconstruction engagement and updated cooling technology address concerns.
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Perini and Skanska Win Major Pier Contracts
Perini Management Services won a $315 million Coast Guard contract for a fuel pier at Base Kodiak, Alaska, starting last month with completion by September 2030. Skanska secured a $271 million Newport, Rhode Island, pier replacement, starting with completion by March 2030.
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Iowa Approves $1.36B Tax Incentives for Mesabi Metallics Steel Mill
Kim Reynolds signed House File 2801, enabling $1.36 billion in tax incentives via Iowa’s MEGA program for Mesabi Metallics’ $15 billion steel mill in Lee County. The measure allows a 10% incentive over 10 years.
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Cleveland’s Big Creek Tunnel Construction Begins in 2026
Granite and Super Excavators will build Cleveland’s $324.8 million Big Creek Tunnel starting fall 2026, completing winter 2030. The four-mile structure under Cleveland, Linndale, and Brooklyn will eliminate 550 million gallons of annual overflow as Project Clean Lake’s final tunnel.
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Construction Contracts Awarded to Turner, Granite, and Tutor Perini
Turner Construction won a U.S. Air Force task order for Arnold Engineering Development Complex work through 2034. Granite Construction secured a $165 million Guam task order with Obayashi for the Naval Facilities Engineering Systems Command. Tutor Perini subsidiaries won $45.2 million Guam bridge work and a $43 million U.S. Coast Guard contract in Astoria.
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Major Industrial Investments in the U.S.
Caterpillar will invest $1 billion in Sanford, North Carolina, for compact equipment production. Ultium Cells will invest $1 billion in Spring Hill, Tennessee, to produce lithium manganese-rich cells, creating 500 jobs by 2028. Genentech broke ground on a $750 million Hillsboro, Oregon, expansion adding 250 jobs by 2031. Avio USA broke ground on a $500 million Hurt, Virginia, facility creating 1,500 jobs by 2029.
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August Construction Spending Hits $2.2 Trillion Amid Data Center Surge
August construction spending rose 0.9% to $2.2 trillion, driven by data centers up 7.5% and nonresidential growth for five months. ABC notes momentum may stay in data centers and power amid cost and yield pressures. AGC warns federal funding gaps and shortages risk reversal.
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