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President Joe Biden signed the IIJA in November 2021, and despite excitement about the five-year, $1.2 trillion law, construction companies said late last year they haven’t yet seen much benefit. That’s starting to change as the money makes its way from state and local budgets down to the project level.

“I am very encouraged by the tailwinds we are seeing not only in our construction segment, but also throughout the entire civil construction industry,” Kyle Larkin, CEO of Watsonville, California-based Granite Construction, said during a recent earnings call. “While it's taken longer than hoped for, IIJA funds have reached the states, money has been allocated to projects, and states are working to get the projects out to bid.”

For example, during the first year of the IIJA, California's federal transportation funding from formula grants increased 42%, or approximately $1.5 billion, with funding expected to remain at this level for the next several years, Larkin said.

AECOM CEO Troy Rudd said during a recent earnings call that getting IIJA and other federal funding into place has been slow, but “we're starting to see the impact in the marketplace today.” However, he expects to see more benefits going forward since state and local governments are well-funded and have set aside money for large infrastructure investments.

“We think we'll see the more significant impact of the funding from IIJA, when matched with state and local funding, in 2024, but we see that going well through ‘26 and ‘27. In fact, what we're forecasting is the peak of that money being in the market and infrastructure projects is probably in 2026 and 2027,” Rudd said. “I think this is an opportunity that will extend for a long period of time we're looking to take advantage of.”

In Texas, for example, Gov. Greg Abbott last week announced a record 10-year, $100 billion statewide roadway construction plan, which is bolstered by money from the IIJA. The bulk of the funding is directed to roads and highways, but Texas’ Unified Transportation Program also identifies public transportation, maritime, aviation and rail projects as priority.

Jacobs CEO Bob Pragada said during a recent earnings call that energy and environment, critical infrastructure and other growth sectors are getting a boost from government stimulus from the IIJA, Inflation Reduction Act and the CHIPS Act. Pragada added the company has helped its clients secure over $1 billion in IIJA competitive grants for projects such as subway station accessibility in New York City, a major port development in Alaska and the design of a sustainable battery recycling facility. 

“Before the end of the calendar year, we fully expect to have all three bills firing at full strength and funding critical projects sponsored by local governments, the federal government and semiconductor industry,” said Pragada. “This overlap of spending will continue for four or five consecutive fiscal quarters and drive growth across the infrastructure and energy markets.”

Joe Bousquin, Sebastian Obando and Zachary Phillips contributed to this report.

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Signed by President Joe Biden in August, the CHIPS and Science Act sets aside over $50 billion to boost U.S. semiconductor manufacturing, R&D and workforce development.

Now, the Commerce Department is working to deploy that money. Earlier this month, the department released an expected timeline on funding opportunities and application processes.

In addition to the applications set to open next week, later this spring the Commerce Department will announce funding focusing on material suppliers and equipment manufacturers. In early fall, the agency will announce a funding opportunity to support the construction of semiconductor R&D facilities.

“While I’ve focused on manufacturing, our success will be short-lived if we focus only on manufacturing,” Raimondo said in her remarks. “The $39 billion in incentives will bring semiconductor manufacturing back to the U.S., but a robust R&D ecosystem will keep it here.”

The secretary highlighted $11 billion from the CHIPS Act that will be used to strengthen the country’s semiconductor R&D ecosystem and create the National Semiconductor Technology Center. 

“The NSTC will be an ambitious public-private partnership where government, industry, customers, suppliers, educational institutions, entrepreneurs, and investors converge to innovate, connect, and solve problems,” Raimondo said. “We envision a network of several centers around the country, solving the most impactful, relevant and universal R&D challenges in the industry.”

Several semiconductor manufacturers have announced new facilities or expansions within the U.S. since the CHIPS Act was enacted last year. Semiconductor manufacturer Applied Materials recently announced a multi-billion dollar plan to increase its manufacturing capacity and build a new R&D facility in Sunnyvale, California.

Dallas-based Texas Instruments similarly announced plans to invest $11 billion to extend its semiconductor wafer fabrication plant in Lehi, Utah, last week.

Finally, Micron Technologies broke ground on an Idaho memory fabrication plant in October

Construction attorney Eric Singer is a huge Game of Thrones fan, so it’s fitting that he points to the HBO series’ best known mantra when it comes to a potential recession in 2023: Winter is coming.

Like the members of the saga’s House Stark who adhere to that motto, Singer says construction pros today should already be preparing for whatever hardships may come, given predictions of more challenging economic conditions ahead.

Those preparations include reviewing contracts with a potential

Construction attorney Eric Singer is a huge Game of Thrones fan, so it’s fitting that he points to the HBO series’ best known mantra when it comes to a potential recession in 2023: Winter is coming.

Like the members of the saga’s House Stark who adhere to that motto, Singer says construction pros today should already be preparing for whatever hardships may come, given predictions of more challenging economic conditions ahead.

Those preparations include reviewing contracts with a potential recession in mind. Critical to the process is knowing what provisions contractors and subs are entitled to, as well as the responsibilities they have to the party on the other side, before a true economic contraction sets in.

“By the time a recession hits, it’s too late,” Singer said.

The wind before the rain

Singer said that in his own practice, he’s seen signs that “winter” may already be here.  

“To me, the biggest leading indicator in construction is a change in the nature and frequency of claims, which we’ve been seeing,” said Singer, a partner at Ice Miller in Chicago. “It’s like the wind that blows up before it’s going to rain. You can sort of smell it coming.”

Those claims have come in the form of what Singer calls “late-in-the-game change orders,” which have picked up as projects that kicked off early in the pandemic now approach their final stages.

“What I'm seeing now is contractors getting significantly into a job and realizing they're losing money, and they try to convert that to a change order,” Singer said. “It’s the contractors that are financially on the margins that are leading those changes. We’ve got a bunch of them.”

Attorney Alex Baghdassarian, a partner at Hanson Bridgett in Los Angeles, has noticed a similar uptick in claims, and a new unwillingness among project owners to accept them as interest rates have increased and capital markets have gotten tighter.

“Previously, when there were changes or delays on the project, oftentimes owners would be sympathetic and try to resolve the dispute,” Baghdassarian told Construction Dive. “If the contractor was asking for $100,000 in change orders, they may have negotiated it down to $80,000 or $70,000. That is not happening as much.”

Instead, as owners and developers encounter a more challenging funding environment themselves, Baghdassarian said, they’re saying no more often.

“They don’t want contractors to see them as an open checkbook,” Baghdassarian said. “Unless the contractor can convince them these costs are actually driven by something the owner or design team did, owners are telling contractors they’re out of luck, and that they have to absorb these costs.”

Attorney Adam Richards, a partner at Berger Singerman in Miami, says even though construction activity is still robust in Florida, just the possibility of economic slowing has changed the tenor of recent negotiations.

“We’re not quite sure what’s on the horizon, but regardless, the impact is that everyone starts tightening up,” Richards said. “Everyone starts thinking about risk aversion.”

Seeking shelter before the storm

Against that backdrop, and as financing becomes tighter amid higher interest rates, contractors should protect themselves by checking up on the financial health of any projects they’re on today. They can easily do so, in most cases, by making a request via the financial assurance clause contained in most standard contracts. 

“It allows a contractor to ask the owner for reassurance of its capability to continue funding the project,” Baghdassarian said. “The contractor should be entitled to confirm whether the loan is still in place, or if the owner-developer is running into any sort of financial issues.”

Those answers should come as a normal course of doing business. If they don’t, that could be a signal tougher times have already arrived.

“If the owner is nonresponsive, that’s a pretty good indication the situation may be more serious than anticipated,” Baghdassarian said. 

Getting in line

Of course, many contractors and subs get wind of problems on a job in another way: when the checks stop coming, even though they’re still doing work.

Before that happens, contractors need to make sure they’ve already issued preliminary notice to owners of their lien rights to a project, should conditions worsen. That notice not only alerts owners that the property could be used as collateral against unpaid debts if a project hits a roadblock, it also establishes the contractor’s place in line as to who will get paid first. 

“The key in terms of enforcement of liens is who comes first in time,” Baghdassarian said. That means if a contractor gave proper preliminary notice to an owner prior to funding being secured for the project, that contractor would come before even a bank or other lender in terms of getting paid.   

If you didn’t serve a preliminary notice earlier, do so now so that “the value you add going forward is protected,” Baghdassarian said.

Of course, getting to the point where liens are necessary is never a great outcome. Richards advises to make sure you regularly check in on the health of the job before then.

“With every single payment application, you have an opportunity to reconcile the account, and do a deep dive on the project,” Richards said. “Because the outstanding balance can get too large too quickly if you’re not properly tracking it from the get-go.”

Before sending paper, talk it out

When the wheels do come off a project, contractors are often in a precarious position between their subs and the owner they’re trying to get money from (and preserve a relationship with).

In that situation, attorneys universally recommend transparency and open dialogue to keep both owners and subs in the loop, even if a lien is unavoidable.

“Sending something in writing that surprises people is never a good idea,” Baghdassarian said. “Before sending a notice, speak to your owner contact and let them know the situation you’re facing with your own subcontractors. If you’re dealing with people who are honest, that’s usually well received.”

Keep in mind, should you need to file a lien to get paid, doing so is only as good as the owner’s solvency. 

“If the property is worth half as much as there are lien claims, you can expect that even if you win, even if you did everything right, you’re not going to collect everything you’re owed,” Singer said.

That, ultimately, is the difference between boom times and bust when it comes to construction

“When times are flush, money covers over a lot of problems,” Singer said. “When times are bad and the owner has money concerns, they can’t fund that spread any longer. That will grind a project to a halt.”

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The $1.9 billion facility is the latest project to chase CHIPS Act funding to bring chip production back to the United States. Intel is building a $20 billion facility in Licking County, Ohio, while Micron announced a $15 billion chip fab in Boise, Idaho. 

In addition to the availability of federal funds, continued demand from aerospace, electric vehicles and the military are spurring more projects to be built, said Mark Granahan, CEO of iDEAL Semiconductor, a Bethlehem, Pennsylvania-based fabless semiconductor company.

“We as a country need more capability and capacity from a semiconductor perspective, because over the course of decades we’ve looked over to the Far East. In doing so, we lost some of our competitive edge,” said Granahan. “The CHIPS Act will move us into a more competitive position.”

The push to onshore the manufacturing of sensitive electronics components comes as tensions between China and the U.S. have escalated further, after the Air Force shot down a Chinese spy balloon in early February that had traversed much of the country. 

“Right now, computer chips — the technology that powers everything from cars to smartphones to broadband — are mostly made in China. That’s a problem,” said Kelly in a statement. “It means that both our national defense systems and the goods and services Americans rely upon are vulnerable to the whims of the Chinese Communist Party. And it means that if there’s a computer chip shortage — like we’re experiencing right now — we have no control as prices skyrocket.”

It’s the second major Kansas semiconductor project to be unveiled in February, with assembler Integra Technologies recently announcing a $1.8 billion facility in Wichita. That project, which will serve as the company’s headquarters, totals 1 million square feet and is also in line for federal money. 

“Like Integra, EMP Shield will now use our support through various incentive programs to apply for federal CHIPS funds to round out the resources it needs to complete this expansion,” said Kelly.

With the explosive introduction of new technologies, such as Artificial Intelligence systems, cloud computing, and digital twins, technology adoption continues to evolve and gain steam within the construction industry. With this trend, industry leaders within both the technology and construction world are pursuing a “partnering” approach, which emphasizes increased collaboration and idea-sharing to drive meaningful impacts in the industry.

Two such leaders are Javier Glatt, Co-Founder of cmBuilder.io

With the explosive introduction of new technologies, such as Artificial Intelligence systems, cloud computing, and digital twins, technology adoption continues to evolve and gain steam within the construction industry. With this trend, industry leaders within both the technology and construction world are pursuing a “partnering” approach, which emphasizes increased collaboration and idea-sharing to drive meaningful impacts in the industry.

Two such leaders are Javier Glatt, Co-Founder of cmBuilder.io and Frank L. Ciminelli II, President & CEO of the Buffalo, NY-based firm, Arc Building Partners. Trained as an engineer, Frank is an established construction industry veteran and innovator that strives to push his firm forward by integrating knowledge with technology. 

Javier and Frank sat down to discuss the multi-dimensional role of digital technologies in overall digital project delivery, client & risk management and, of course, construction site logistics simulations with the cmBuilder.io platform. Arc has embraced a number of these new technologies in their operations in order to set the standard for digital technology adoption and rise as an industry leader.

Some background on Arc Building Partners:

Within the ever-evolving construction industry, Arc has built and maintained a strong sense of purpose that is well embedded in their brand. An arc, such as the one in their logo, is much like a bridge, a shield and a story arc, symbolizing the many hats they wear for their clients and communities. As members of the construction industry, Arc plays a proactive role in defending the environment and the social fabric of the neighborhoods they serve. By pairing innovation and a whole lot of hard work with meaningful partnerships, Arc helps clients transform empty lots, vacant buildings and hazardous brownfields into buildings designed to better serve those that occupy them.

The transition to digital

As we zoom further into this story arc, Frank touches on the growing number of obstacles faced by the construction industry. From the expanding complexity of projects and building materials, to project delivery models (Design Build, Integrated Project Delivery, etc.). With complexity comes added risks, which have served as a forcing function for investment in new technologies and workflows that mitigate these risks and deliver value for clients. Being an early adopter of technologies, such as 3D, Building Information Modeling (BIM) coordination and cloud-based project management software like Procore, has been key to Arc’s mission of getting ahead of the curve. Frank put an emphasis on cloud-based collaboration technologies and how they can be critical to acting as a common data environment for stakeholders. This “hub of information enables everyone on the team to see the same thing and be on the same page.”

The utilization of digital

Frank details how Arc has specifically utilized digital technologies like 3D/4D site logistics modeling and BIM as a means to generate a “digital twin,” or a digital visual representation of a final asset. The digital twin serves as a pathway between the strategic plan and the final physical product. He also shed light on the potential of AI, where digital twins and 4D simulations can be fed into an AI engine to establish “digital feedback loops.” This allows for risk management and forecasting through the comparison of planned versus actual progress.

Another area Frank is passionate about is pushing digital models out to the field, to encourage better collaboration-centric models between all stakeholders on the project. At Arc, this has helped flatten the learning curve for their field teams and “demystify” the use of these technologies. The value unlock is to digitize the under-digitalized people out in the field to drive better decision making, produce a higher quality end product and further technology adoption.

One driving force to this acceleration of tech adoption at Arc has been the introduction of the cmBuilder platform to their project planning workflow for powerful, yet easy to perform 3D/4D site logistics simulations. Frank emphasized the importance of project planning, noting that cmBuilder has been critical to getting buy-in on the site logistics plan and validating that the proposed plan will work. As noted by Ana Alcocer, the VDC Manager at Arc, cmBuilder’s ease-of-accessibility has enabled Arc to effortlessly integrate the software into their operations, accommodating their multi-generational workforce that has varying levels of technological proficiency.

The next phase for digital

As we delved deeper into what the next decade holds for digital construction technologies, Frank shared an insightful opinion that focuses on the improvisation of the current processes. He believes that current obstacles are anchored within delivery models in the form of legal contracts, transactions, permissions and more. He stated that, “technology must be leveraged as a catalyst to force a different conversation as to what the appropriate delivery model must be – the right way to assemble a team in terms of bringing the right people into the project at the right time, with the right subject matter expertise and with the necessary governance around it.” The engineer in Frank is always thinking process first. He notes that even with the most powerful digital technologies, it is vital to first find the best project delivery models and risk sharing structures to deploy them. Otherwise, the impacts will be diminished. 

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A full year of higher interest rates will cause 2023 to be a slower year for construction activity, said Vornado CEO Steven Roth during the call.

“Steel, concrete and curtain walls are important, but in our business, capital is the essential raw material,” said Roth, who said high interest rates are making funding for projects scarce.

Meanwhile, construction financing, if available, remains “very expensive,” said Franco. Roth said the capital markets are “making it almost impossible to build new.” 

Yet the Federal Reserve will likely maintain higher borrowing costs for the considerable future, said Anirban Basu, chief economist at Associated Builders and Contractors, recently in a press release. That could further cause dips in backlog and contractor confidence levels.

Last fall, Roth brought up the difficulty of developing new projects in a shaky economy, leading Hochul to say that the Penn Station redevelopment project will move forward with or without Vornado and that the city has “other sources of financing for Penn Station,” according to NY1. 

Other developers have also attributed the economic climate to pushing project prices even higher.

For example, the cost of the Mutual of Omaha headquarters tower in downtown Omaha, Nebraska, has jumped from $443 million to $600 million. Similarly, the developers of the MSG Sphere entertainment project in Las Vegas raised its price tag about $180 million in November due to the ongoing impact of inflation and global supply chain pressures.

Sarah Martin, Dodge Construction Network senior economist, said to expect weakness in traditional office projects this year, especially as remote and hybrid work continue to be prevalent. 

Roth said he sees office occupancy beginning to pick up in Vornado’s portfolio, but does not expect a full five-day in-office work week to ever return again.

“We’re getting close to 60% [office occupancy] on Tuesdays, Wednesdays and Thursdays,” said Roth during the earnings call. “I think you can assume Friday is dead forever. Monday is touch and go.”

The Associated General Contractors of America has selected the three finalists for its 2023 Construction Innovation Awards, which recognize forward-thinking and creative ways to address pain points in construction.

The three finalists for this year’s awards are:

The Associated General Contractors of America has selected the three finalists for its 2023 Construction Innovation Awards, which recognize forward-thinking and creative ways to address pain points in construction.

The three finalists for this year’s awards are:

The added tech and emphasis on advancement illustrate a reality in the industry that construction has a technology problem — it’s one of the least-digitized industries in the world, according to a McKinsey report. 

Another McKinsey report cites construction labor-productivity growth of only 1% per year, compared with growth of 2.8% for the total world economy and 3.6% in the case of manufacturing. It’s a challenge the industry faces that has no easy answer.

The AGC’s Innovation Awards, started in 2018, emphasizes forward-looking solutions to construction’s most pressing problems, including:

Ten to 25 competitors apply for the awards each year, said Sarah Gallegos, building division director at AGC and head of the awards program. This year, seven applied.

The Innovation Awards are also the only program in the association’s portfolio with cash prizes — the grand prize winner will take home $7,000, with second and third place garnering $3,500 and $1,500, respectively. Winners will be announced during the opening session of the AGC Annual Convention, slated for March 13-16 in Las Vegas.

Solutions don’t need to have a hard tech focus, Gallegos said. Anything that can help the industry advance is fair game.

“We didn't just want this to be technology based. The idea was ‘forward thinking,’ so anything that you think that your company is doing to provide innovations to the construction industry in some capacity,” Gallegos told Construction Dive.

For example last year’s first place winner, the AGC Washington Education Foundation’s Core Plus program, helps high school students choose construction as a career, but isn’t wholly tech-focused.

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The consistent ranking of phishing as the most prevalent initial access vector underscores the need for organizations to focus on people, process and technology, according to Stephanie Carruthers, global head of innovation delivery and chief people hacker at IBM Security X-Force Red.

Phishing has enjoyed longstanding success as an initial access vector and attackers are constantly innovating their approach to keep phishing alive and thriving, Carruthers said.

“It only takes one person to click that link that could lead to a major compromise,” Carruthers said via email. “And it works because it’s simple and plays on human emotions. That’s a trifecta right there and that’s what’s providing staying power.”

The latest phishing tactics need to be shared with employees so they know what to look out for, such as phishing emails that are getting harder to spot.

Thread hijacking, which involves a threat actor hijacking an email account and responding to email threads pretending to be the original victim, doubled in 2022.

“What makes thread hijacking so dangerous is that attackers are hitting people when their defense is down, after that first level of trust has already been established,” Carruthers said.

The research highlights trends and points of compromise that played out in some of the most high-profile incidents of 2022.

Incidents involving identity access managers, such as Okta and Twilio, impacted many potential downstream victims and in one case they were intertwined when a phishing attack against Twilio exposed one-time passwords of multiple Okta customers.

The majority of penetration tests IBM Security X-Force Red ran for clients in 2022 revealed improper authentication or handling of credentials. Many organizations lacked visibility into applications and endpoints exposed through identity access management services, the report found.

The report is based on research data IBM Security X-Force gathered in incident response engagements throughout 2022, in addition to vulnerability and exploit databases and network and endpoint tracking.

Here are four recent announcements from software makers and other tech providers about new products or updates to existing products that are designed to smooth out the construction process for contractors, subs and owners:

PlanHub

The SaaS preconstruction solution firm has expanded its end-to-end general contractors' platform. Its simplified, cloud-based tool is designed to help general contractors improve collaboration with subcontractors and material suppliers, find new projects, request

Here are four recent announcements from software makers and other tech providers about new products or updates to existing products that are designed to smooth out the construction process for contractors, subs and owners:

PlanHub

The SaaS preconstruction solution firm has expanded its end-to-end general contractors' platform. Its simplified, cloud-based tool is designed to help general contractors improve collaboration with subcontractors and material suppliers, find new projects, request and select bids, qualify subcontractors and create proposals, according to the firm.

General contractors can post unlimited projects for free, easily invite subcontractors and suppliers to bid, quickly compare bids and assemble winning proposals, the firm says. The platform includes a Lead Finder tool that helps GCs access the newest building construction projects available, including hard-to-find private projects, along with owners’ and architects’ contact information. The Bid Leveling feature lets users compare subcontractor bids side by side, including bid amount, qualifications and certifications.

Safe Site Check In

Construction management software maker Safe Site Check In has announced a new Jobsite Observations feature that allows supervisors, workers, subcontractors and visitors to include notes, photos, videos, and attachments to document jobsite conditions and progress. 

Additionally, the product’s observations and automated daily log information can be easily added to construction project management platforms, including Procore Daily Log Notes. This way, general contractors have a consistent and complete view of the progress of each job, saving time and money, the company says.

InEight

The construction software firm has announced its latest suite of innovations, which are designed to increase forecasting accuracy, field productivity and subcontractor management. In addition to out-of-the-box forecast methods, InEight users can now configure the best equations to automate forecast calculations for the different types of work through different stages of completion, the firm says.

The platform enhancements also facilitate more efficient collaboration between the office and the field. Scope and quantities, productivity goals and more are easily communicated in daily digital plans to field crews and subcontractors.   

Additionally, InEight made it easier to get full visibility into subcontractor costs. With line of sight to both committed and uncommitted costs, users can compare the variance between the planned cost and the actual costs.

Trimble

Trimble announced last week its new advanced path planning technology that provides users and equipment manufacturers with the ability to optimize and automate the trajectory, speed and overall path design of industrial equipment to increase efficiency of work. 

Manufacturers can now provide their customers with an easy-to-integrate, automated solution that works not only with Trimble systems, but also with an equipment manufacturer's existing system. The technology will also be available within Trimble Connected Farm and Trimble Construction Cloud.

AECOM has won a contract to manage major capital improvements for Fair Park, the historic 277-acre entertainment district in Dallas known for hosting the State Fair and the Cotton Bowl Stadium, the contractor said in a release. The transformation will emphasize resilience and sustainability to better serve its 6 million annual visitors into the future.

Fair Park’s updated master plan proposes new public spaces and eight new buildings, including a hotel and exhibition facilities exploring Texas’

AECOM has won a contract to manage major capital improvements for Fair Park, the historic 277-acre entertainment district in Dallas known for hosting the State Fair and the Cotton Bowl Stadium, the contractor said in a release. The transformation will emphasize resilience and sustainability to better serve its 6 million annual visitors into the future.

Fair Park’s updated master plan proposes new public spaces and eight new buildings, including a hotel and exhibition facilities exploring Texas’ industrial history. Existing museums will also be expanded. 

In the first phase of the transformation, AECOM will oversee the delivery of the 18-acre Community Park Complex. Plans call for various recreation areas, an outdoor market, cafes and a performance stage. It will also include a 1,650-space parking structure and feature blue-green infrastructure to mitigate flooding and other environmental risks, per the release.

This phase of work will cost around $93 million and is slated to wrap in December 2024, according to Fair Park First, the nonprofit managing the project. It was designed by landscape architect firm Studio MLA and global design firm Gensler.

“With this new partnership, we can continue the work of putting the park back in Fair Park and restoring it to its rightful place as an international attraction,” said Fair Park First Board President Darren L. James in the release.

On future Fair Park projects, AECOM will manage design, construction, permitting and closeout, according to the release.

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The attorney general’s office alleged that GTA Co. left the excavated asbestos on the ground and in open dumpsters. The complaint also alleged that the contractor arranged for transport of the waste it failed to contain from the Everett and Braintree projects, and illegally stored the waste at a site in Revere, Massachusetts.

A consent judgment — wherein parties agree to settle without admission of guilt or liability — filed last month in Suffolk Superior Court states the terms for Antonelli and GTA Co.’s fines. Over the course of two years, the defendants agreed to pay $175,000 in installments. The remaining balance of the penalty, $50,000, will then be waived two years from the date of the judgment, should the contractor and owner comply with settlement. 

Namely, GTA Co. will be required to notify the Massachusetts Department of Environmental Protection weekly of any upcoming projects involving asbestos work for the next two years. The defendants will also be required to train the employees who worked on the project how to properly and safely handle asbestos. For the next two years, GTA Co. must have at least one trained supervising employee present at projects with asbestos work. 

GTA Co. declined to comment.

The case is part of an ongoing goal of Campbell’s to hold landlords, contractors and property owners accountable for mishandling of materials like asbestos, a spokeswoman from the attorney general’s office told Construction Dive. The cases often revolve around construction and demolition work.

When asbestos is improperly handled or disposed of, it can release fibers into the air, which, when inhaled, can potentially result in life-threatening illnesses, including asbestosis, lung cancer and mesothelioma.  

“By conducting unsafe and illegal asbestos work, these companies put the health of the community – including the health of their own workers – at serious risk,” said Campbell. “I’m proud of the work our office did to hold this company accountable for their actions – and we will continue to take on any company that harms our environment or violates workplace safety laws.”

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New awards in the fourth quarter of 2022 increased threefold largely due to a third New Fortress Energy fast LNG project, a chemicals project in China and a methane storage terminal project in Mexico, said David Constable, CEO of Fluor, during the earnings call.

Infrastructure charges on a number of legacy projects have negatively affected Flour’s results the past few years. The COVID-19 pandemic and oil price declines later amplified those problems. Over the past five years, Fluor’s stock has tumbled close to 40%. The company cast its latest report as a turning point from that recent history. 

“In 2022, we demonstrated our resilience, continued to grow and remained steadfast in taking actions to achieve positive results,” said Constable. “With a renewed sense of confidence, I am excited about the opportunities in front of us and encouraged by our ability to deliver significant shareholder value now and in the years ahead.”

The company established its 2023 adjusted EPS guidance at $1.50 to $1.90 per share, versus analysts’ $1.66 consensus. 

That’s due to the volume of new awards received across all three segments over the past year, the reimbursable nature of the existing backlog versus previous fixed-price contracts and the expected performance of the company’s remaining legacy projects, said Constable during the call.

Takeaways from earnings

Fluor’s awards momentum stood out during the quarter, said Andrew Wittmann, senior research analyst at Milwaukee-based financial services company Baird, in a research note. 

“A first look at results suggests better-than-expected awards, 2023 EBITDA guidance midpoint ahead of consensus, and, importantly, no material charges through the income statement all suggesting more consistent execution,” Wittmann wrote. “The underlying performance today appears to be solidifying — that’s the key.”

New awards to the backlog also continue to be increasingly lower risk, added Wittmann.

About 63% of the backlog is reimbursable, according to Fluor, up from 41% a year ago. That’s seen as a positive — and less risky — business proposition by observers. 

“Investors have been wary of Fluor going over budget on its construction projects given deep issues under prior management,” said Wittmann. “If future work is not fixed price but rather reimbursable then the odds of going over budget are significantly reduced.”

Constable added that those reimbursable contracts should increase to about 75% by 2024.

“2022 [and beyond] is seeing inflecting growth driven by earnings which bottomed during 2021’s transition,” said Wittmann. “[That] eventually will be bolstered by elevated commodity prices, which should ultimately drive investment in oil, gas and mining.”

London-based contractor Balfour Beatty is continuing its executive appointments in its U.S. Civils business with the appointments of two more people to key positions in the business arm, according to a Feb. 15 announcement.

The company appointed Mark Johnnie to chief operating officer of its U.S. Civils business and Kelly Phariss to vice president of west operations. The new executives will be focused on strategic planning for the company’s highways and bridges, rail and water businesses, according

London-based contractor Balfour Beatty is continuing its executive appointments in its U.S. Civils business with the appointments of two more people to key positions in the business arm, according to a Feb. 15 announcement.

The company appointed Mark Johnnie to chief operating officer of its U.S. Civils business and Kelly Phariss to vice president of west operations. The new executives will be focused on strategic planning for the company’s highways and bridges, rail and water businesses, according to the release.

Johnnie, who has been at Balfour Beatty since 1998, will now also cover the Southwest while maintaining his current role overseeing the firm’s highway and bridges work across the Southeast.

Phariss will head operations in the west managing the company’s project portfolio within the rail, highways and bridges and water sectors in California, Oregon and Washington. Phariss is a leader on Los Angeles World Airport’s Automated People Mover project, and will remain deputy director on the project in addition to his new role. 

Phariss will also support and pursue opportunities that blend scopes of work involving the company’s Buildings and Civils construction services, according to the release. 

These U.S.-based executive moves are the second in as many months — in January, the firm’s U.S. Buildings and Civils division announced top-level changes with the appointment of Eric Stenman to CEO of the U.S. Buildings & Civils business, and Mark Konchar to division president for U.S. Civils & Rail. 

Leo Quinn, Balfour Beatty’s chief executive, said that the U.S. is an important market for the group in the January news, which tracks as funding from the infrastructure act rolls out to states and municipalities. Large contractors like Balfour Beatty and its U.S. Civils operation will benefit from the funds as the company’s infrastructure arm builds large highway and water projects, according to its website.

Konchar said that these new appointments will aid the division’s growth while also shoring up international strategies that engage markets around the world.

“Our Civils business continues to experience significant progress with excellent opportunities on the horizon,” Konchar said in the release.

The construction industry has always been known for its traditional and manual approach, but with the advent of technology, the industry is rapidly changing. With the rise of digital construction, all stakeholders are now able to streamline processes and improve the overall efficiency and safety of construction projects - and the larger the project, the more important the dependability of the collaboration software becomes for effective coordination.

In a recent webinar, Mariya Sorensen and Shaun Hester,

The construction industry has always been known for its traditional and manual approach, but with the advent of technology, the industry is rapidly changing. With the rise of digital construction, all stakeholders are now able to streamline processes and improve the overall efficiency and safety of construction projects - and the larger the project, the more important the dependability of the collaboration software becomes for effective coordination.

In a recent webinar, Mariya Sorensen and Shaun Hester, director of implementation services in North America at Revizto, discussed why Mariya’s team made the decision to switch to Revizto halfway through the UW Health East Park project’s coordination process, as well as how they were able to accomplish this transition. The speakers also discussed how Revizto’s clash automation has helped Mortenson streamline the coordination process and accelerate issue management. 

Below are some of the highlights of how Revizto has become the secret sauce to Mortenson’s effective coordination on large projects. To watch the full on-demand webinar, click here. 

Hosting Everything in One Place

One of the main themes of the webinar was the role of Revizto in hosting everything in one place and its vast functionality that enabled Mortenson to visualize their designs and make necessary adjustments before construction even begins, reducing waste and rework. 

Creating an Environment of Accountability & Improved Delivery

Another topic of discussion was Revizto’s native clash detection and issue tracker. The speakers highlighted how these features create an environment for accountability and improved delivery. Mariya also noted that through Revizto’s 2D and 3D model synergy, a realistic, immersive experience arises for clients and stakeholders, enabling them to understand the design better. Moreover, Mariya touched on VR and how it also helps with training and education, allowing workers to familiarize themselves with the construction process and its intricacies in more detail. 

Focusing on Deliverables

Finally, the webinar emphasized the importance of having everything in one common data environment. The experts discussed how this aspect of Revizto allows Mortenson to focus on deliverables rather than tracking multiple software and ensuring that the data is constantly and correctly updated. 

The webinar offered hundreds of registrants a great platform for exchanging ideas and insights on the role of Revizto in Mortenson’s success. It demonstrated how Revizto helps improve efficiency, sustainability and accountability on construction sites and how the industry is rapidly embracing new technologies to drive innovation and growth.

To watch the full on-demand webinar, click here. 

About Revizto

Revizto is the industry-leading Integrated Collaboration Platform (ICP) used by Architects, Engineers, Contractors and Owners for real-time collaboration, automated clash detection, grouping and issue tracking all from a single environment throughout the project lifecycle. Revizto empowers teams to drive accountability, improve timelines and maximize cost-savings by connecting contributors from across platforms, model types and teams, from in-office, on-site and any device. Over 3,000 firms across 150 countries, including 20 of the top 25 ENR firms enable their teams to make better decisions, minimize rework and drive accountability. Revizto was developed in 2011.

About Mortenson

Founded in 1954, Mortenson is a U.S.-based, top-20 builder, developer and provider of energy and engineering services committed to helping organizations move their strategies forward. Mariya’s team provides various services, including MEP coordination, constructability reviews, 4D scheduling, 5D estimates and much more. They also build projects in VR, augmented reality, mixed reality and robotics. 

Dive Brief:

Dive Brief:

Dive Insight:

The announcement marks the largest economic investment in Utah history, according to the release.

The new fab will be located next to the company’s existing semiconductor wafer fab in Lehi. TI acquired that plant in October 2021 from Micron, a Lehi-based semiconductor manufacturing company. 

Once completed, the two plants will operate as a single fab, according to the company.

The plant will manufacture tens of millions of analog and embedded processing chips daily that will enter electronics markets worldwide. The expansion project will also create approximately 800 additional TI jobs as well as “thousands of indirect jobs,” according to the release.

The project aims to achieve LEED Gold certification. For instance, plans include recycling water at nearly double the rate of the existing Lehi fab, according to the release.

That’s because large chip fab plants can use up to 10 million gallons of water a day, equivalent to the water consumption of roughly 300,000 households, according to Gradiant, a Woburn, Massachusetts-based water solutions provider.

Texas Instruments also has another mega construction project underway in the U.S..

The semiconductor company broke ground in May on its estimated $30 billion facility in Sherman, Texas, with production on that project expected to start in 2025. That investment marked the largest private sector investment in Texas history, according to the company.