Capitol Update 12.05.2025

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from Mark Smith, Advocate, California Builders Alliance

 

AGC seeks clarity on tariff policy as PPI rises

The producer price index for nonresidential construction rose 0.2% in September and 3.2% from September 2024 levels, according to analysis by the Associated General Contractors of America. Even modest but persistent month-to-month increases create a "stop-and-go" rhythm that makes planning difficult and squeezes already thin margins, says Macrina Wilkins, senior research analyst at AGC. clearer tariff policy would help stabilize materials markets and improve confidence, added AGC CEO Jeffrey Shoaf.

Full Story: Construction Dive

 

 

Talk first, email after: A superintendent's perspective

Corey Febo, a superintendent at JE Dunn Construction, emphasizes the importance of direct communication on construction sites, noting that email often causes delays, misinterpretations and inefficiencies. Febo advocates for face-to-face conversations to resolve issues quickly and accurately, noting that this approach fosters accountability and faster decision-making.

Full Story: Construction Dive

 

 

Construction workers may capitalize on data center boom

The surge in data center construction is creating lucrative job opportunities for construction workers, with some earning six-figure salaries and additional perks. DeMond Chambliss, a former small business owner, now oversees a team of 200 workers at a data center site in Columbus, Ohio, earning more than $100,000 annually.

Full Story: The Wall Street Journal

 

 

Local insight key amid policy-driven market dynamics

JLL's 2026 US Construction Perspective highlights the importance of localized strategies as market dynamics become increasingly policy-driven. Construction spending dropped 4.7% in 2025 amid uncertainty, with only 0.4% growth expected in 2026. Material costs are likely to rise next year because of delayed trade impacts, and workforce constraints could worsen as activity increases. "Success in 2026 will require big-picture thinking combined with local market insight," JLL Project and Development Services COO Jaymie Gelino says.

Full Story: For Construction Pros

 

 

Permitting hurdles slow broadband projects

States are eager to use $42 billion from the federal Broadband Equity, Access and Deployment program to enhance internet infrastructure, but permitting is a major challenge. Lawmakers are considering measures such as "shot clocks" and fee caps to expedite the process, but local governments and Democrats are concerned about losing control over local review processes.

Full Story: Route Fifty

 

 

DOT could revoke accreditation for 3K trucking schools

The Department of Transportation has announced a major crackdown on the trucking industry, threatening to revoke accreditation for nearly 3,000 truck driving schools and trainers for not meeting federal requirements. This move aims to ensure that drivers are properly trained and eligible for commercial driver's licenses.

Full Story: National Public Radio

 

 

Walmart plans more projects with 3D printing

Walmart is partnering with Alquist, Hugg & Hall and FMGI to execute more than a dozen 3D-printed construction projects across the US. The first project will begin at a Lamar, Mo., store later this month. The scale up comes after Walmart's successful past 3D printing projects in Tennessee and Alabama.

Full Story: Construction Dive

 

 

Manufacturing facility for mass timber tops out

Swinerton and Timberlab have topped out a 192,000-square-foot cross-laminated timber manufacturing facility in Millersburg, Ore., which is expected to be one of the largest in the US when completed in 2027. The facility, named Independence Hall, will produce 7 million to 9 million square feet of CLT annually and create about 100 jobs.

Full Story: Construction Dive

 

 

OSHA's top 10 violations: Fall protection leads again

For the 15th consecutive year, fall protection has topped OSHA's list of most frequently cited standards, with 5,914 reported violations for fiscal year 2025. The majority of these citations involved failures to provide proper fall protection systems for employees working six feet or more above lower levels, especially in residential construction and roofing activities. Other top violations include hazard communication, ladders, lockout/tagout and respiratory protection.

Full Story: Safety + Health

 

 

Contractors innovate with AI, prefabrication, safety

To address labor shortages and enhance efficiency, contractors and construction management firms are innovating with AI, robotics, prefabrication and safety solutions. Accenture has introduced an electric vehicle charging station layout tool, while Barton Malow Holdings is using AI and robotics for operational efficiency. Bozzuto Construction is collaborating with Blueprint Robotics on a Passive House project, and DPR Construction is developing mass timber data centers.

Full Story: Building Design+Construction

 

 

5 estimating tools contractors trust

Material costs continue to rise, with Turner Construction's Building Cost Index up 3.6% in Q1 2025. This makes accurate construction cost estimation crucial. Here are five trusted construction estimating software options: InEight Estimate for heavy-civil projects, ProEst for large commercial GCs, STACK for mid-market contractors, Buildxact for small builders and Sage Estimating for enterprises using Sage accounting. Each offers unique features, from AI-powered takeoffs to seamless integration with existing tools, helping contractors protect margins and improve efficiency.

Full Story: Programming Insider

 

 

Kiewit works to develop next wave of construction leaders

Kiewit Construction and Purdue University have expanded their partnership with a program preparing students for leadership roles in the construction industry. The 21-student program offers scholarships, mentorship from Kiewit executives and hands-on experience. Kiewit also is working with four other universities.

Full Story: Purdue University

 

 

California invests $590M in major water projects

California has initiated eight water infrastructure projects meant to improve drinking water reliability, wastewater systems and climate resilience. Funded by nearly $590 million in state grants and low-interest loans, the projects include PFAS removal in Irvine, a wastewater facility upgrade in San Luis Obispo and a desalination facility in Antioch. Together, they will add 2.9 billion gallons of clean water annually, supporting Gov. Gavin Newsom's broader strategy to modernize water systems statewide.

Full Story: Underground Infrastructure

 

 

$10B One Beverly Hills project breaks ground

Construction has begun on the $10 billion One Beverly Hills project, which is set to become one of the most exclusive addresses in the world. The 17.5-acre development will feature the first Aman hotel on the West Coast, two glass towers with residences starting at $20 million, a 100,000-square-foot private club, and 200,000 square feet of retail space. The project, expected to be completed in time for the 2028 Los Angeles Olympics, will also include 10 acres of botanical gardens, with 4.5 acres open to the public.

Full Story: New York Post

 

 

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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

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