from Mark Smith, Advocate, California Builders Alliance
The restoration of 100% bonus depreciation under the One Big Beautiful Bill Act presents a significant tax-saving opportunity for construction firms, but it coincides with a period of IRS understaffing and administrative challenges. Chris Coleman of RubinBrown advises companies to educate themselves on the new provision, use cost segregation studies carefully, and maintain precise documentation and fixed-asset management to maximize benefits and minimize risks during tax season.
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Full Story: Construction Dive |
Federal Reserve Chair Jerome Powell said the central bank can look past the Iran war's energy shock for now but may act if inflation expectations begin to rise. He emphasized that while supply shocks are typically temporary, persistent price pressures could force the Fed to respond despite risks to economic growth.
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Full Story: The Wall Street Journal CNBC Bloomberg |
President Donald Trump has issued an executive order requiring federal contractors and subcontractors to avoid "racially discriminatory DEI activities," or risk contract cancellation. The order, which agencies must implement by April 25, also requires contractors to provide detailed records for review. The Equal Employment Opportunity Commission has indicated it will target private companies' diversity, equity and inclusion initiatives.
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Full Story: Construction Dive |
The Trump administration is set to revise steel and aluminum tariffs, applying a 25% duty to the full value of finished imported goods rather than just their metal content. While the headline rate is lower, the change could increase overall costs for many imports and boost government revenue. The move aims to simplify compliance and support domestic manufacturing.
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Full Story: The Wall Street Journal |
Dow Chairman and CEO Jim Fitterling has warned that the ongoing war with Iran is causing significant volatility in petrochemical prices, leading to inflation in construction materials and other goods. Fitterling compared the supply shock to the disruptions seen during the COVID-19 pandemic, noting that the closure of the Strait of Hormuz has blocked nearly 20% of global petrochemical capacity. While US plants, which rely on natural gas-derived ethane, are less affected, Asian and European plants using crude oil-based naphtha face severe shortages. "The US is in a really advantageous position," S&P Global Energy Vice President Kurt Barrow noted. "Those [ethane] crackers are running as hard as they can to supply the market, but the reality is there's not enough spare capacity in the world to make up that gap."
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Full Story: Construction Briefing |
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Opinion: Early decisions, not construction, drive cost overruns |
Cost overruns in commercial construction are often mistakenly attributed to execution-stage issues, but their origins lie in early project decisions made during planning, Bhavik Savaliya of Turner Townsend writes. The persistence of overruns highlights a misalignment in understanding cost risk, as initial assumptions under uncertain conditions often fail to account for current market volatility.
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Full Story: Construction Dive |
General contractors should consider shifting from competitive bidding to negotiated contracts to increase return on investment, writes Chad Prinkey, founder and CEO of Well Built Construction Consulting. Prinkey notes that while competitive bidding typically yields a 25% win rate and can create significant overhead waste, negotiated work offers a 75% win rate and better profitability, although it requires more upfront time and effort.
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Full Story: Construction Dive |
The Safe Streets for All grants, totaling nearly $1 billion, represent the largest portion of USDOT's recent infrastructure investments. These grants are targeted at metropolitan planning organizations, cities, counties and tribes working on projects to prevent roadway fatalities and serious injuries for all users, including pedestrians, cyclists, transit riders and motorists. In 2025, similar grants supported projects in Oklahoma, Arizona and Florida, highlighting the program's ongoing commitment to transportation safety across the nation.
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Full Story: The Construction Broadsheet |
WSP CEO Alexandre L'Heureux has reassured investors that artificial intelligence will not make professional services firms obsolete, emphasizing the company's expertise in managing physical projects and its "machine-in-the-middle" approach to AI. WSP reported a 13% revenue increase for 2025, reaching $13.5 billion, and a 42% rise in profit, driven by a record backlog of $12.6 billion.
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Full Story: Construction Dive |
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Office-to-residential conversions surge amid remote work trend |
Office-to-residential conversions in the US have increased by 28% year over year at the start of 2026, driven by the rise of remote work and incentives from cities facing housing shortages, according to RentCafe. New York City leads the trend with 16,358 units, followed by Washington, D.C., and Chicago. Office buildings now account for 47% of future conversion projects, with hotels and industrial properties trailing.
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Full Story: Construction Dive |
Journey Steel, a minority-owned structural steel company in Cincinnati, is working to increase the number of women in construction through a hands-on pre-apprenticeship program. The program, led by co-founder Barbara Smith, provides ironworking training and mentorship, offering women a pathway into the trades. Smith's efforts have been recognized with multiple awards, and she aims to ensure more women have opportunities in construction.
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Full Story: Spectrum News |
Cumming Group has launched an Advanced Technologies division to capitalize on the surge in data center and advanced manufacturing construction. Led by industry veterans including Kevin Klein and Paul Logan, the division has already secured major projects, including a significant microprocessor project and multiple data centers. Chief Business Officer Stephen Coulthard expects the data center market to grow 20% to 30% annually.
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Full Story: Construction Dive |
Sumitomo Heavy Industries and NEC are collaborating to develop an AI-powered system that detects and reports near-miss incidents at construction sites. The system will analyze camera footage and sensor data from hydraulic excavators to identify potential risks, with plans for practical implementation in fiscal 2027.
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Full Story: World Construction Network |
The Los Angeles Metro board has approved a plan to extend the K Line nearly 10 miles from the Crenshaw/Expo line to the Hollywood Bowl, passing through Mid-City, the Fairfax District and West Hollywood. The extension is expected to serve 100,000 riders a day and connect 125,000 jobs. Construction is scheduled to begin in 2041, and service could start in the late 2040s.
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Full Story: KTLA-TV (Los Angeles) |
The California Transportation Commission has allocated $848 million for transportation projects, focusing on mass transit and freight operations. The funding includes $273 million for rail systems in the San Francisco Bay Area and Southern California, with $100 million for a 5-mile tunnel for Bay Area Rapid Transit between San Jose and Santa Clara. The funding also includes $47 million from the federal Infrastructure Investment and Jobs Act and $405 million from California's Senate Bill 1. The commission has also laid the groundwork for $17.9 billion for highway system improvements over the next four years.
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Full Story: Construction Dive |
Granite Construction has been awarded a $114 million contract by the California Department of Transportation for Segment 4E North of the Highway 101 project, from Carpinteria to Santa Barbara. Granite previously secured the contract for Segment 4E South. Granite has shown strong financial performance, with a revenue of $4.42 billion and a three-year revenue growth rate of 9.7%. However, insider selling and valuation concerns pose potential risks.
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Full Story: GuruFocus |
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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
