from Mark Smith, California Builders Alliance
House narrowly passes tax and spending bill
The House has passed the One Big Beautiful Bill Act, a tax and spending package, by a 215-214 vote. The bill extends tax deductions for construction contractors, including making the 199A deduction permanent and increasing it to 23%, and introduces a tax cut on overtime pay. The bill also expands Pell Grants and 529 savings for workforce training. It faces opposition from Democrats and some Republicans in the Senate due to its $2.3 trillion deficit impact and cuts to health care and food benefits. Full Story: Engineering News-Record (tiered subscription model)
Architecture billings continue to decline in April
The Architecture Billings Index decreased in April, with a score of 43.2, down from 44.1 in March, marking the 28th decline in 31 months. AIA Chief Economist Kermit Baker notes economic uncertainty is affecting new construction projects but says firms are managing well, maintaining staffing and project backlogs. The Northeast reported the lowest regional score at 40.2, while the South had the highest at 46.2. Full Story: The Architect's Newspaper
Contractors confused by conflicting DEI directives
Contractors are facing confusion due to conflicting directives on diversity, equity and inclusion, with President Donald Trump's executive order ending federal support for DEI, while states like Massachusetts continue to mandate participation of minority-, women- and veteran-owned businesses. Contractors are advised to focus on engagement rather than outcomes, seeking diverse subcontractors based on merit to comply with both federal and state requirements. Full Story: Engineering News-Record (tiered subscription model)
Project Stress Index up 1.4% in April
Project stress in the private sector has surged, with a 40% increase in projects on hold and a 14.1% rise in abandonments year over year, according to ConstructConnect. The Project Stress Index climbed 1.5% in April, driven by a 4.6% rise in delayed bid activity. In contrast, public construction remains stable, with a 29% decrease in projects on hold. Full Story: Construction Dive
Construction thrives despite operator gaps, theft risks
The construction industry is showing signs of optimism, driven by advances in equipment technology and sustainability efforts on display for the Association of Equipment Manufacturers' Celebration of Construction event in Washington, D.C. Additionally, recent polls in affirm outside anecdotes about reduced tariff concerns. However, the persistent operator shortage and rising equipment theft continue to pose risks. Full Story: SmartBrief/Infrastructure
Construction wages maintain premium despite slower growth
Nonresidential construction job growth remains strong in 2025, with states like New Mexico and Idaho leading employment gains. However, construction job openings and layoffs have decreased, indicating a pause in hiring. Average hourly earnings for construction workers rose 3.9% year over year in March, with a significant premium compared to other industries. Material costs remain volatile, with a notable increase in the producer price index for nonresidential inputs. Full Story: Equipment World
Tariff worries force firms to rethink contracts
Builders are facing trade war-induced price escalation, but they can take key steps to help mitigate that risk
Construction costs dip, but tariffs hike some materials’ prices
Inputs declined overall in April due to falling energy prices, but steel and copper rose significantly while nonresidential costs continued their upward march
Developers delay billions in projects amid mounting uncertainty
Tariffs, tax credits and loan approvals are weighing on potential builds, particularly in clean tech construction
D.C. judge orders DOD to resume PLAs on major projects
A US District Court judge in Washington, D.C., has ordered the Department of Defense to resume using project labor agreements on major construction projects, aligning with a Biden-era executive order. Full Story: Construction Dive
Backlog hits nearly 2-year high despite tariff worries
Contractors’ expectations for their profit margins grew, but the gains in infrastructure building backlog were erased.
Dimon: Recession possible due to tariff volatility
JPMorgan Chase CEO Jamie Dimon says a recession remains possible due to the volatility caused by the Trump administration's tariff policies. Although recent US-China tariff reductions are a positive sign, some clients are hesitant to invest due to market fluctuations. "If there is a recession, I don't know how big it would be or how long it would last," Dimon said. Full Story: Bloomberg New York Post CNBC
AGC survey: Motorists face high death risk in work zones
Motorists are nearly twice as likely to die in work zone crashes as construction workers, and 47% of contractors say highway work zones are more dangerous than they were a year ago, according to a survey by the Associated General Contractors of America and HCSS. The survey also found that 60% of highway construction firms reported at least one crash in the past year, with 71% of crashes resulting in driver or passenger injuries. AGC is advocating for stronger work zone safety laws and better enforcement to address these issues. Full Story: Associated General Contractors of America WBNS-TV (Columbus, Ohio) WICZ-TV (Binghamton, N.Y.) KTVN-TV (Reno, Nev.)
Skanska CSO advises gradual foray into AI
Skanska USA Building Chief Strategy Officer Anita Nelson discusses the company's approach to integrating artificial intelligence, emphasizing a gradual implementation. Skanska's latest AI tool, Safety Sidekick, uses generative AI to provide real-time safety data and jobsite insights, aiding in toolbox talks and hazard management. Nelson advises other contractors to leverage existing data and consider off-the-shelf products to ease AI adoption. Full Story: Construction Dive
Report: Digital lag connected to construction cost rises
Global construction is experiencing unprecedented activity, but a Revizto report highlights significant operational challenges, including inefficiencies and budget overruns linked to outdated practices. While some firms have adopted new technologies, overall digital integration remains limited. The report shows that 92% of AECO professionals report budget changes, with major cost increases in the US and UK. Full Story: Construction Briefing
Granite, Skanska leverage AI for training, safety
Granite Construction and Skanska are leveraging artificial intelligence to enhance operations, with Granite's Asphalt Guru using AI to train employees and Skanska's Safety Sidekick consolidating safety resources. These initiatives exemplify a broader trend in the construction industry, as companies integrate AI to gain a competitive edge. Full Story: Construction Dive
Survey: AI use is up in architecture, engineering
AI adoption is rising in the architecture and engineering sector, with 53% of firms using AI tools, up from 38% last year, as they apply AI to proposal development, project planning and data analytics, according to the annual Deltek Clarity Architecture & Engineering Industry Study. However, many firms still rely on manual processes for core functions. Full Story: Building Design+Construction
Lumina unveils autonomous electric bulldozer
Lumina has introduced a 40-ton electric autonomous bulldozer in San Francisco, aiming to "reconstruct the construction industry" by offering "excavation as a service." The driverless bulldozer is in the prototype phase, and Lumina hopes it will reduce costs and increase efficiency in construction. The demonstration comes on the heels of Lumina raising Lumina is raising $20 million to $40 million in a Series A round to build five more electric bulldozers by March 2026 and to start selling construction services. Full Story: KNTV-TV (San Francisco) Axios
Calif. OKs $1.7B for highway safety, climate resilience
The California Transportation Commission has approved nearly $1.7 billion for infrastructure projects to enhance safety, mobility and climate resilience, aligning with Gov. Gavin Newsom's "Build More, Faster -- For All" initiative. Key projects include rehabilitation of Interstate 805 in San Diego County and emergency repairs for roads damaged by wildfires and storms. Full Story: Roads & Bridges
Mortenson, McCarthy finish $1.3B hospitality project
Mortenson and McCarthy Building have completed the $1.3 billion Gaylord Pacific Resort and Convention Center in Chula Vista, Calif. The 36-acre development features a 22-story Marriott hotel with 1,600 rooms, an 800,000-square-foot convention center and a 4.3-acre water park. The project, which created about 3,000 jobs during construction and is expected to generate 3,900 permanent jobs, was finished in 34 months. Full Story: REBusinessOnline
$400M outpatient tower opens in Duarte, Calif.
City of Hope has opened an eight-story, $400 million outpatient tower on its Duarte, Calif., campus as part of a $1 billion modernization effort. The 350,000-square-foot facility, built by DPR Construction, features 84 exam rooms, 110 infusion spaces and the Cherng Family Center for Integrative Oncology.Full Story: Los Angeles Business Journal
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Mark Smith
Advocate
California Builders Alliance
5370 Elvas Avenue ǀ Sacramento, CA 95819
Cell: 916.335.5072
Email: mark.smith@calbuilders.org
Email: mark@smithpolicygroup.com
