Sebastian Obando

“Contractors are being hit by a double whammy” of rising materials prices and slower growth in bid prices, said Ken Simonson, chief economist at Associated General Contractors.

While other sectors showed signs of life, much of the momentum still flowed through data center and public infrastructure projects.

Alignment between builder and owner is where alternative delivery creates lasting value, Pepe Baraja said.

Contractors with data center awards reported stronger pipelines in May than those without those projects, said Anirban Basu, ABC chief economist.

This means we have a long-term stake in the asset's performance, and that alignment between builder and owner is where alternative delivery creates lasting value.

Municipal pushback and access to energy pose risks to future data center development, said Ermengarde Jabir, director of commercial real estate research at Moody’s.

Megaprojects drove sizable growth in groundbreaking activity over the month, said Sarah Martin, director of economic research at Dodge Construction Network.

The contractors expect substantial completion in October 2028 and the facility to be commissioned in 2029, according to a news release.

The firm will work alongside the design-build joint venture team of Gilbane and Turner, and expects construction to reach completion by 2030.

More than $908 million will go toward Hurricane Helene recovery to help states repair roads, bridges, water systems and rail lines.