Infrastructure - Construction Executive https://constructionexec.com The Magazine for the Business of Construction Tue, 14 Jul 2026 17:43:51 +0000 en-US hourly 1 https://constructionexec.com/wp-content/uploads/2025/10/CE_Fav_Green_512x512-1-150x150.png Infrastructure - Construction Executive https://constructionexec.com 32 32 251514335 How Pre-Engineered Metal Buildings Can Help Contractors Shorten Project Timelines https://constructionexec.com/article/how-pre-engineered-metal-buildings-can-help-contractors-shorten-project-timelines/?utm_source=rss&utm_medium=rss&utm_campaign=how-pre-engineered-metal-buildings-can-help-contractors-shorten-project-timelines Mon, 20 Jul 2026 10:00:00 +0000 https://constructionexec.com/?p=65961 PEMBs use a systems approach that standardizes many elements that typically slow projects the most.

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Pre-engineered metal buildings give contractors a practical way to compress schedules without sacrificing quality or code compliance. By shifting complexity into the design and fabrication phases, they reduce variables in the field, shorten critical paths and create more predictable delivery windows on commercial and industrial projects.

When teams coordinate early with manufacturers and align foundations, utilities and long-lead systems around a pre-engineered building package, they often cut months from traditional timelines and reduce schedule risk from weather, trade stacking and material delays. 

WHY PEMBS ACCELERATE CONSTRUCTION

PEMBs use a systems approach that standardizes many elements that typically slow projects the most, including:

  • Structural steel detailing
  • Connection design
  • Secondary framing
  • Building envelope interfaces

Manufacturers design and engineer frames, purlins, girts, cladding and bracing as an integrated package. Components arrive on site ready for assembly, so contractors don’t have to field-fit them. That approach eliminates a large portion of requests for information, rework and sequencing conflicts that often appear when separate teams handle structural, envelope and miscellaneous steel scopes.

The model also aligns with the realities of modern construction labor. Crews assemble prefabricated frames and panel systems with repeatable, well-documented erection procedures, which help contractors ramp up new team members quickly while maintaining productivity. Because pre-engineered metal buildings rely on bolted connections instead of extensive field welding, teams reduce specialized labor needs and compress critical erection durations.

STREAMLINED DESIGN AND ENGINEERNG

Coordinated Structural Design Up Front

Pre-engineered metal building projects shift design effort from the field into the front end of the job, where it produces the greatest schedule benefit. During the design phase, the building manufacturer and design team coordinate structural loads, bracing locations, deflection criteria and interface points with slabs, mezzanines, mechanical, electrical and plumbing systems, and architectural features. When the team resolves these issues before fabrication, the contractor avoids costly detailing changes and field modifications that can stall erection.

Property and business owners increasingly treat PEMBs as mainstream solutions for low-rise nonresidential work, so guidance and requirements exist to support predictable delivery. For example, state-level pre-engineered metal building guidelines in the public sector require complete sealed documents, clear load tables and explicit code compliance criteria, which provide a solid framework for permitting and plan review. The clarity reduces back-and-forth during approvals and keeps design milestones aligned with construction and start dates.

Standardization That Protects the Schedule

PEMB systems benefit from repeatable details that manufacturers have refined across many projects and climates. Standardized frame geometries, panel profiles and connection details streamline engineering checks and shop drawing production, which shortens the path from schematic design to released-for-fabrication documents. In practice, that means contractors receive issued drawings earlier and can lock in procurement and erection plans with more confidence.

Because PEMB suppliers build to established specifications and quality programs, contractors also gain schedule protection on the back end of the project. Consistent tolerances and predictable connection behavior reduce time spent resolving misalignments, flange conflicts or panel fit issues during erection. This results in fewer unscheduled downtime days and a smoother critical path for follow-on trades such as interior build-out, process equipment installation and site improvements.

OFFSITE FABRICATION AND LOGISTICS ADVANTAGES

Pre-engineered metal building components come from controlled factory environments instead of jobsites, which removes weather from much of the structural schedule. Fabricators cut, drill and weld members indoors with automated equipment and quality inspections, so the contractor receives ready-to-assemble bundles instead of raw shapes. This off-site manufacturing model reduces fabrication variability and allows parallel progress, since the building goes into production while sitework and the foundations are in the works.

Logistics planning becomes more straightforward. Manufacturers ship frames, secondary members and panels in sequenced loads that match erection order, which minimizes double-handling and laydown congestion on tight sites. With fewer SKUs and a higher degree of prefabrication, contractors spend less time chasing missing pieces or improvising substitutions that can trigger change orders and schedule slips.

FASTER, MORE PREDICTABLE ERECTION IN THE FIELD

Erection speed remains one of the most visible advantages of pre-engineered metal buildings for contractors under schedule pressure. Because primary frames, roof structures and wall systems arrive as coordinated packages, crews can move quickly from first columns to a dried-in shell.

Weather sensitivity decreases once the building reaches that milestone, so the project team removes a major external risk from the schedule.

Repeatable erection sequences also support more accurate planning. Critical path schedules for PEMB projects often show compressed durations for structural steel compared to conventional methods, especially on low-rise commercial, industrial, athletic and agricultural buildings.

Less in-field layout, fewer complex connections and minimized welding enable smaller crews to maintain high productivity, which proves especially valuable in regions where specialty labor remains tight.

LABOR, SAFETY AND SITE COORDINATION BENEFITS

PEMB projects often require fewer total onsite labor hours than comparable conventional builds. The fewer the hours, the shorter the overall calendar time and the reduced exposure to site risks. Prepunched members and factory-fitted components limit cutting and drilling at height, while bolted assemblies reduce hot work. Those characteristics support safer workflows and more predictable productivity rates, which help contractors hold critical milestones even when conditions change.

Simplified scopes also ease coordination with other trades. Clear building geometry, known frame lines and predictable roof and wall assemblies give MEP and specialty contractors a solid foundation for routing and support planning.

When teams model penetrations, support points and hanging loads against pre-engineered metal building design early, they avoid many of the clashes that typically require late-stage rework.

APPLICATIONS WHERE SCHEDULE GAINS STAND OUT

Contractors see the strongest schedule impact from PEMBs on projects where simple structural grids and large clear spans take priority. Distribution centers, light manufacturing, storage facilities, athletic complexes and agricultural buildings often fit this profile and can move from foundation to occupancy significantly faster with pre-engineered systems than with traditional framing.

In sectors that depend on fast deployment, such as logistics, cold storage or year-round training facilities, compressed schedules translate directly into earlier revenue or operational readiness.

Specialized facilities, including metal equestrian buildings, also benefit from the repeatable, open-span structures that pre-engineered metal buildings deliver. Designers can integrate a steel shell, so contractors still meet sector-specific requirements while maintaining aggressive timelines.

BRINGING SCHEDULE CERTAINTY TO THE CRITICAL PATH

As owners push for shorter delivery windows and more predictable openings, contractors face increasing pressure to control variables that traditionally sit outside their direct influence. Pre-engineered metal buildings address that challenge by packaging key structural and envelope decisions into a coordinated, engineered system that moves much of the risk away from the jobsite and into controlled design and fabrication environments.

When project teams engage PEMB suppliers early, align permitting and foundations with the manufacturing schedule and plan erection logistics around sequenced deliveries, they create a clearer critical path and more reliable completion dates for commercial and industrial projects.

SEE ALSO: EVOLUTIONARY THEORY: PREFABRICATION’S TRANSFORMATION OF THE INDUSTRY

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Contech Company Cyvl Uses Vehicle-Mounted AI Sensors to Collect Fresh Data for Some of America’s Biggest Cities https://constructionexec.com/article/contech-company-cyvl-uses-vehicle-mounted-ai-sensors-to-collect-fresh-data-for-some-of-americas-biggest-cities/?utm_source=rss&utm_medium=rss&utm_campaign=contech-company-cyvl-uses-vehicle-mounted-ai-sensors-to-collect-fresh-data-for-some-of-americas-biggest-cities Wed, 08 Jul 2026 17:30:06 +0000 https://constructionexec.com/?p=65874 What started as an idea from an 18-year-old engineering student transformed into one of the nation’s leading companies in civil infrastructure analytics in a matter of years. Today, Cyvl is paving the way for data collection and infrastructure development in cities like Atlanta, Nashville and beyond.

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When you’re driving down the road, it might not always—if at all—cross your mind about how exactly that road was built, but this thought is on the mind of Daniel Pelaez every day.

Cofounder of the Boston-based contech company, Cyvl, Pelaez is helping over 100 U.S. cities rethink how they build and rebuild their roads.

“Through vehicle-mounted sensing and analytics already embedded in day-to-day operations, Cyvl is effectively powering the reconstruction of roads up and down the country—determining what gets fixed, when and why,” says a representative of the company.

Having just been named in Cemex Ventures’ Top 50 Contech Startups for 2026—which recognizes companies that are already influencing how construction and infrastructure decisions are made on the ground—Cyvl sat down with Construction Executive to discuss their evolutionary work further.

Maybe even stay tuned for a sneak peek inside one of their AI-powered cars.

What was the impetus for starting this product/company?

The Cyvl sensor being installed on a car. 

DANIEL PALAEZ: It’s a fun story. It started with the problem and we found the technology to solve that problem. One of my first ever jobs was working on the road crew for a public works department in Southbury, Connecticut. And I was seeing firsthand how hard it was to manage infrastructure. The town was reacting to issues every single day, whether that be residents hitting a pothole or trees falling down or missing signage no one noticed until it caused an accident. This was a smaller city that was relying on outdated data that lived on paper in a three-ring binder.

I was only about 18 or 19 at the time, but I figured there had to be a better way. So, I started talking to lots of other communities and realized they were relying on similar techniques. When I entered college in 2020 for engineering is when I started to learn about these sensors used for self-driving vehicles, and that was the “a-ha” moment of seeing the massive problem firsthand, recognizing that pretty much every community across the U.S. is battling with outdated infrastructure and information. Then it was about figuring out how technology from self-driving cars could be applied to automatically map out infrastructure, and how to use AI to perform condition assessments, recommend treatments, budgets, etc. That is really where we saw the magic of applying that tech to this problem. Ever since then it’s been a very fun journey helping hundreds of governments implement this into their day-to-day workflows.

What was the process of getting this off the ground?

The Cyvl team at their HQ in Somerville, Massachusetts.

About halfway through college, I thought this would be a fun application of the tech. It was never a class project. I just started conceptualizing it in my mind and I recruited one of my best friends and roommates—we’ve actually known each other since we were seven years old—who is way smarter than I am to help me build it out.

We didn’t know anything about starting a company; we just thought we were solving a cool problem. We began looking for funding to make prototypes and entering innovation contests across the country. After winning a few of them, everyone kept telling us, ‘Hey, this is a really big problem that our country and the world needs to solve,’ which motivated us to take it more seriously. So, shortly after graduating, we decided to become cofounders and brought on a third friend of ours from college to help us with the AI side of things. We raised $100,000 from our first ever investors, which felt like a lot of money at the time—we were all just 22 years old. We made that last more than a year until we got our first customers. And it’s been a wild ride since then.

When did this product officially hit the streets?

One of Cyvl’s 40+ computer vision models in action – detecting concrete distresses.

At the beginning of 2022, we started our first projects with municipalities and a few civil engineering firms in Massachusetts. Those were crazy days where the product barely worked, but we were determined to make it better and to keep getting feedback from the cities and towns we were working with, which was invaluable to us at time.

Do these sensors/vehicles operate as a service (i.e. SaaS)?

The Cyvl Platform.

It’s an annual investment the cities make in our technology. What that gives them is access to the sensors, which they can put on their vehicle so they don’t need to buy them, and access to our software program, which is what’s taking all the data from the sensors, automatically processing it, doing the condition reports and then creating plans and budgets so the city can get to work with more speed and accuracy.

Was it hard to get cities to agree to bring this tech on board?

CEO Daniel Pelaez presenting the Cyvl Platform to the City of Buffalo, a customer.

Yeah, it was incredibly hard. Imagine a 22-year-old placing cold calls into every single town or city in the state telling them, ‘Hey, I have a better way to manage your very expensive roads and sidewalks.’ There was a lot of skepticism—especially when they asked how many customers we had and we had to say zero. We got a lot of nos, but, slowly but surely, we started building a reputation. It’s still challenging these days, but I think that’s what’s really been special.

Cities do see immediate value when they start working with our technology. Now there’s less perceived risk when we can present them with data from working with some of the biggest cities in the nation. It was never easy, but, as with any business, you just have to keep pushing through.

What is the smallest/biggest city you’ve worked with?

We’ve worked all over Massachusetts, Iowa, Wisconsin in some pretty small communities, about 5,000 people or under. Our first big customer was the city of Atlanta. We partnered with them about a year and a half ago, and we were just selected by the city of Nashville to do a full five-year infrastructure plan. We have a few other big cities that we cannot formally announce yet, and we’re even beginning talks with some state DOTs.

How do you hope to see your company evolve?

Pelaez speaking at a customer press conference.

I’d say our number one goal and our mission as a company is to enable government agencies to build infrastructure 90% faster and 50% cheaper than they’re doing today. And if we can encourage a digital-first standard, I’m sure there will be more companies like us popping up, and I’m sure some of the major civil engineering firms are going to start to embrace these technologies, too. If we can make that the de facto standard for the U.S. by 2030, that will be a huge accomplishment for us. We’re really trying to change an entire industry here, and we’re not going to do that alone. So, bringing more people along with that shared digital-first mentality and the new operating model for infrastructure is incredibly important.

How do you hope that your story might inspire the future of construction business owners and innovators?

(From left to right) Cyvl cofounders Noah Budris, Daniel Pelaez, and Noah Parker.

I’ve been so fortunate just to be surrounded by mentors and advisors and friends that have been cheering for us, supporting us, rooting for us unconditionally, because the construction industry is definitely not the quickest to adopt technology and rightfully so—there are major risks on the line when you’re talking about critical infrastructure. I think for good reason people are conservative about trying new things.

My advice is simply ‘don’t give up.’ It’s very easy to be told no 99 times and to return to whatever you were doing in life before. But, I guarantee you, that if you just keep your mind to it, you don’t give up, you persist, whatever you’re working on, whether it’s a business in this industry or not, you’ll be successful. Then surround yourself with like-minded folks, because you need that positivity. You have to be a default optimist.

SEE ALSO: NEW WALL-SCALING ROBOTS ARE SAVING CONSTRUCTION COMPANIES TIME, PRODUCT AND PERSONNEL

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Building the Research and Healthcare Facilities of Tomorrow Without Impacting the Progress of Today https://constructionexec.com/article/building-the-research-and-healthcare-facilities-of-tomorrow-without-impacting-the-progress-of-today/?utm_source=rss&utm_medium=rss&utm_campaign=building-the-research-and-healthcare-facilities-of-tomorrow-without-impacting-the-progress-of-today Tue, 23 Jun 2026 10:49:16 +0000 https://constructionexec.com/?p=65723 Healthcare and laboratory construction requires a much more delicate touch, especially when construction must not disrupt critical patient and research operations.

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Research labs run experiments that can’t be paused. Hospitals treat patients around the clock. Yet these same facilities constantly need upgrades—new infrastructure, modernized systems, renovated spaces—to meet the demands of twenty-first century science and medicine. The challenge for construction teams isn’t just building. It’s building without ever turning the lights off.

This unique dynamic creates an environment where construction activities are happening adjacent to sensitive testing and treatment, a complex setting where disruptions can have serious consequences. Skanska continues to successfully navigate these challenges across multiple sectors, including from occupied lab space at the North Carolina Department of Environmental Quality’s (NCDEQ) Reedy Creek Laboratory in Raleigh to hospital corridors alongside staff and patients in various hospital locations across the country.

While laboratories and hospitals are inherently different, the approach behind renovating these facilities without disrupting regular operations is quite similar. The secret sauce: strong communication with the customer, alongside careful planning and strategic scheduling that keep disturbances to an absolute minimum.

A rendering of the NCDEQ campus. All Photos Courtesy Skanska.

Construction in Phases

Splitting construction into phases is critical: It allows upgrades to be carried out in predetermined spaces, while maintaining the majority of the customer’s standard operations. This strategy is implemented with a detailed schedule that establishes the framework for the duration of critical activities in each specific phase, guaranteeing the customer is informed about every step in the process. Each phase is sequenced deliberately and intentionally, such that work generating the most noise, dust or disruption is clustered together and scheduled when it will have the least impact on surrounding operations, so that no single moment in the project catches the customer off guard.

Navigating Disruptions

While assembling a thoughtfully crafted plan to renovate an active facility is difficult in itself, the real challenge begins when crews step into the occupied space to start construction activities. Isolating the activities with barriers  is crucial to maintaining operations and reducing the impact of noise and vibrations.

Skanska has extensive experience working within active hospitals nationwide. Protecting patients, staff and ongoing operations is always a priority. Construction activity is carefully isolated from treatment rooms, laboratories and corridors through temporary partition walls and negative air pressure environments that keep dust and debris within the construction zone. This is instrumental for patients to receive uninterrupted treatment and testing progresses as usual.

At NCDEQ, the firm utilized vibration monitors on sensitive equipment to ensure construction activities had no adverse effects. In addition, while noisier actions and complex electrical work were completed on weekends or outside of typical working hours.

The NCDEQ campus had to maintain a certain level of operations while also being an active jobsite.

Maintaining Critical Infrastructure and Technical Systems

Occupied facility renovations demand meticulous attention to air quality, power continuity and specialized infrastructure. Air quality is particularly crucial in healthcare facilities and laboratories, where airborne contaminants from construction could compromise patient health or experimental integrity. In instances such as this, advanced filtration systems and carefully sealed containment barriers can be used to ensure particulates and fumes stay confined to construction areas—a standard that goes beyond typical jobsite practice.

While air quality is a major concern, the presence of construction chemicals in a laboratory space pose a similar threat to ongoing research. Skanska held extensive discussions with the NCDEQ to identify and review the chemical makeup of proposed construction materials, verifying these chemicals would not impact ongoing testing. Knowing exactly what compounds were present in the lab determined which adhesives, coatings and construction materials could safely be used in proximity to active research.

Maintaining power during construction is perhaps the most important when working on an occupied facility. Healthcare and research facilities depend on uninterrupted electrical service for everything from life-support equipment in hospitals to climate-controlled sample storage in laboratories. While upgrading electrical systems at NCDEQ, Skanska used temporary panels, circuits and mechanical connections to sustain power for lab technicians as work progressed, ensuring that at no point during the electrical upgrade did researchers lose power to the equipment they depended on.

In addition to electrical upgrades, Skanska’s work at operating facilities throughout the country include the replacement of the entire mechanical, electrical and plumbing infrastructure; these sophisticated overhauls require careful tracing of the existing MEP systems to confirm there is no interference while preserving service throughout the facility’s active and occupied spaces.

An interior shot of a laboratory at NCDEQ.

Keeping Crews and Occupants Safe

The importance of safe construction practices is always paramount; however, safety is further heightened when working in active facilities. The construction site is no longer an isolated zone but a shared space where construction workers, facility staff, patients or researchers may all be present simultaneously. Managing that reality means more than posting signage—it requires construction teams and facility staff to operate as a single coordinated unit, with clear protocols for who goes where, when and why. Comprehensive safety measures include creating clearly marked construction zones, establishing controlled access points and exits, implementing strict material handling procedures and maintaining constant communication between construction teams and facility management.

Building For Tomorrow, Operating Today

Renovating active healthcare and laboratory facilities is entirely achievable with the right combination of strategic planning, technical expertise, and collaborative communication. Skanska has proven that success relies on a phased construction approach, rigorous safety protocols, earned trust and a commitment to minimizing disruption to the essential operations within these spaces.

The work performed at NCDEQ and various research and hospital locations throughout the country doesn’t just provide modernized facilities, it demonstrates that with enough planning, transparency and technical discipline, construction and critical customer operations can share the same space without either one giving ground. As the demand for modernized healthcare and research infrastructure continues to grow, projects like these will serve as a blueprint for how the construction industry can address that need without completely shutting down critical operations.

SEE ALSO: INSIDE CONSTRUCTION’S HIGHEST-PERFORMING PROJECTS

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Trusting the Pipeline: Supporting Early-Career Construction Talent https://constructionexec.com/article/trusting-the-pipeline-supporting-early-career-construction-talent/?utm_source=rss&utm_medium=rss&utm_campaign=trusting-the-pipeline-supporting-early-career-construction-talent Fri, 19 Jun 2026 15:00:00 +0000 https://constructionexec.com/?p=65575 DFI’s Educational Trust is supporting the next generation of professionals in deep foundations with scholarships and grants to jumpstart their opportunities in the field.

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The future of the geotechnical and construction industry is built in the pipeline of talent ready to shape it. Through scholarships, grants and education, the Deep Foundations Institute’s Educational Trust is grounding its efforts and working to strengthen that pipeline by investing in students and early-career professionals who will define the industry’s next generation.

“We realize how necessary it is to get in front of students at a young age to let them know our industry exists and that there are a multitude of careers available,” says Helen Robinson, chair of the DFI Educational Trust and vice president of GEI Consultants Inc.

The trust serves as the charitable arm of DFI—an international association of contractors, engineers, manufacturers, suppliers, academics and owners in the geotechnical construction industry.

Over the past 20 years, more than 700 students and young professionals—geoprofessionals involved in the design and construction of foundations, excavations, ground improvement and tunneling—have received scholarships and grants across the United States and Canada, which includes many international students studying in North America.

“We always get a very high caliber of candidates, so it’s very difficult to make the scholarship selections,” Robinson says.

Recipients of the scholarships are enrolled full time at U.S. and Ontario, Canada-based colleges or universities and are pursuing undergraduate or graduate degrees related to the field. Spring scholarships range from $2,000 to $5,000. “A $5,000 scholarship is wonderful, but we’d love to do even more,” says Robinson.

“We’re always trying to quantify the impact and determine how we can use the funds more effectively. It’s a challenge because the cost of getting an engineering degree continues to increase,” she says.

Since 2006, the trust has awarded nearly $2.7 million in scholarships and grants through 24 funds, including the spring offerings for At-Large Scholarship Program and Women in Deep Foundations Professional Development Grants Fund.

Recognizing diversity gaps within the industry, DFI’s Women in Deep Foundations Committee worked with the trust to create an initiative to support professional growth and industry engagement among women involved in geotechnical design, manufacturing and construction.

The grant awards recipients $1,750 and provides a complimentary opportunity to attend DFI’s Annual Conference on Deep Foundations in Orlando, Florida—helping expand networking and career development opportunities.

“Over the past 15 years or so, we’ve seen real progress for women in the industry,” Robinson says. “But there’s always more we can do, especially when it comes to supporting parents starting young families.”

Despite strong career potential, the geotechnical industry is not usually at the forefront of students and parents’ minds. A lack of awareness around the field’s opportunities continues to impact recruitment.

“There’s so much work to be done. We are working to educate parents and students who may be interested in the field,” says Robinson. “Not everyone needs to go to college. You can make a good living, be part of a team and be very successful without that path. We want young people to know that.”

Retention is another growing concern.

“People in the industry are getting burned out because we can’t keep up, and some are seeking lower-stress jobs. It creates a cycle,” she says. “Geotechnical work has a reputation for people getting dirty, and the tools or lab testing may not seem as exciting.”

The solution? Supporting the next generation of professionals in the geotechnical industry with access, awareness and opportunity.

“We need to change the image of professions in the industry to reflect innovation,” says Robinson. “It’s not just about moving dirt—it’s an exciting and highly challenging field, and the world is built on the work we do.”

SEE ALSO: A BEACON OF HOPE: JOSEPH GROH FOUNDATION’S NEWEST GRANT RECIPIENT

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When Buildings Forget: Digital Data Siloing https://constructionexec.com/article/when-buildings-forget-digital-data-siloing/?utm_source=rss&utm_medium=rss&utm_campaign=when-buildings-forget-digital-data-siloing Thu, 18 Jun 2026 17:30:00 +0000 https://constructionexec.com/?p=65517 Critical infrastructure data is vanishing after project handover—costing billions and exposing a systemic flaw in how the built environment tracks, preserves and connects its own history.

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Consider what happens to a building the moment a commercial design-build project is completed.

Years of engineering intelligence, construction documentation and design intent are bundled into a project closeout package and handed to the owner—who files it in a system you will never access again. Three ownership transitions later, that documentation is gone. Not destroyed. Not deleted. Just disconnected—spread across file servers of firms that no longer manage the property, locked inside software platforms replaced twice over or sitting in the memory of a facilities director who retired years ago.

Buildings in the United States routinely operate for 50 to 100 years. The digital records documenting those assets are lucky to survive a single ownership transition.

A STRUCTURAL PROBLEM THAT PREDATES TECHNOLOGY

The construction and design industry has invested heavily in digital transformation over the past two decades. Project-management platforms, cloud-based document control and real-time collaboration tools have fundamentally changed how buildings are designed and delivered. The data generated across a modern project is extraordinary in its depth and precision.

And virtually none of it persists.

The reason is not a failure of technology. It is a failure of architecture—specifically, the absence of any persistent identity layer connecting digital records to the physical asset they describe. Infrastructure data is organized around projects, platforms and organizations. When the project closes, the platform migrates or the organization changes, the data disappears with them. The building itself has no digital identity to which records can remain permanently anchored.

What is missing is not better data management. What is missing is a permanent, asset-anchored identity that exists independently of any platform, project or organization.

THE HANDOVER MOMEMENT IS WHERE IT BREAKS

The handover package represents the most complete snapshot of a building that will ever exist—the engineering intent of every system, installation records for every component, commissioning results and compliance documentation. It is the institutional memory of the building at its most complete. From the moment it is handed over, that memory begins to degrade.

Maintenance records accumulate in facility management platforms, but reference equipment by asset tag rather than by any identifier tied to the original engineering record. The connection between the installed system and its design specification is severed.

Renovation work is documented in project files, organized around the contractor’s workflow rather than the building’s lifecycle record. Pre-renovation conditions and as-built changes exist in isolation from everything that preceded them.

Insurance events are recorded in underwriting systems with no connection to the engineering documentation that would contextualize a claim. An underwriter assessing a roof failure has no reliable access to the original specifications or maintenance history that might explain it.

Each system generates accurate, professionally maintained records. The trouble is, none can communicate with the others because they do not share a common reference point—a persistent identity for the asset itself.

THE REAL COST TO BUILDERS AND DESIGNERS

The design and construction industry bears costs from this fragmentation that are rarely attributed to their true source. When a renovation contractor cannot locate original structural drawings and commissions new engineering studies, that is a cost of identity fragmentation. When a contractor’s litigation defense depends on locating decade-old installation records, the difficulty of that search is a cost of identity fragmentation. When an insurance carrier disputes a claim because maintenance compliance cannot be verified, that delay and expense trace back to the same structural failure.

The construction and design industry produces some of the most technically sophisticated documentation in any field. The fact that it routinely disappears within a decade of project completion is not a reflection of the industry’s capability. It is a reflection of the absence of infrastructure designed to preserve it.

A NEW FRAMEWORK: PERSISTENT INFRASTRUCTURE IDENTITY

Addressing this problem requires a solution that operates at the identity layer rather than the application layer. Rather than connecting existing systems through integrations, the emerging approach treats identity itself as the foundational layer: a permanent, globally unique identifier assigned to every physical infrastructure asset at the point of creation and maintained across its entire lifecycle.

This concept—Persistent Infrastructure Identity—draws on well-established precedents. The automotive industry has used Vehicle Identification Numbers since the 1950s to maintain a continuous record of every vehicle across manufacturers, dealers, insurers and owners. Aviation assigns registration identifiers that persist across operators and jurisdictions for decades. Financial markets rely on standardized securities identifiers that track assets across institutions and ownership structures with complete continuity.

A persistent infrastructure identifier provides a stable reference point not owned by any platform, not dependent on any organization and not invalidated by any ownership transition. Engineering documentation, construction records, maintenance histories, inspection reports and renovation records all reference the same underlying identifier—creating a continuous chain of custody that follows the physical asset rather than the parties who have managed it.

WHAT THIS MEANS FOR DESIGN AND BUILD PROFESSIONALS

Documentation continuity. Engineering records created at design and construction remain associated with the asset across its lifecycle rather than being effectively lost at project close. The technical intelligence embedded in a building becomes a permanent part of its record.

Liability clarity. A persistent, append-only record of what was designed, built, installed and inspected creates a defensible documentation chain accessible decades after project completion. The ambiguity that complicates construction litigation is a direct consequence of fragmentation—one that persistent identity directly addresses.

Lifecycle value. Buildings with continuous, verifiable records are more valuable, more insurable and more financeable. As capital markets and insurers recognize the risk premium of undocumented assets, professionals who establish those records at project inception will have made a measurable contribution to long-term asset value.

Interoperability. A shared identity standard allows platforms used across the construction lifecycle—design, project management, facilities management and insurance—to reference the same underlying asset without requiring replacement or direct integration.

THE ORIGIN POINT OF EVERY BUILDING’S LIFECYCLE

The design and construction industry sits at the origin point of every building’s lifecycle. The records created at design and construction are the most complete documentation an asset will ever have. Establishing persistent identity at that origin point—at the moment of creation rather than retroactively—is both the most logical and the most efficient approach to solving a problem that costs the global built environment trillions of dollars annually.

Buildings should not forget their history. The professionals who build them are in the best position to ensure they never do.

SEE ALSO: THE INDUSTRIAL METAVERSE: ACT NOW TO TRANSFORM YOUR AEC WORKFLOW

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Inside Construction’s Highest-Performing Projects https://constructionexec.com/article/inside-constructions-highest-performing-projects/?utm_source=rss&utm_medium=rss&utm_campaign=inside-constructions-highest-performing-projects Wed, 17 Jun 2026 10:00:00 +0000 https://constructionexec.com/?p=65425 A new analysis of ABC Excellence in Construction™ project data reveals how value-based procurement, preconstruction services, technology adoption and safety leadership are driving industry-leading performance in schedule, budget and jobsite outcomes across every major market sector.

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Each year, construction project competitions across the globe showcase some of the industry’s most ambitious and complex work. In the United States, among the most prestigious are the ABC Excellence in Construction Awards, where Eagle-winning projects represent the highest levels of project performance, innovation and execution.

But beyond recognizing exceptional work, the data behind these projects may also offer a roadmap for delivering better outcomes across the broader construction industry.

Can the performance metrics from award-winning projects help owners, designers and contractors make decisions that lead to safer jobsites, stronger budget performance and more predictable schedules? According to ABC’s growing EIC data set, the answer appears to be yes.

Over the past several years, ABC has enhanced and automated the EIC application process, enabling the organization to capture and analyze detailed project-performance data across hundreds of projects nationwide. The findings reveal several clear trends among top-performing projects: value-based procurement dominated over low bid selection; preconstruction services consistently improved schedule reliability; and contractors investing in technology and early collaboration often delivered stronger safety and budget outcomes.

The 2025 EIC portfolio—recognized at ABC Convention 2026 in Salt Lake City—provides one of the clearest pictures yet of what project excellence looks like in practice.

The portfolio includes 341 national-level projects totaling $15.09 billion in construction value, representing 38 million work hours, 48 million square feet of construction and 3.6 million acres of developed land. The projects span every major market sector, including data centers, healthcare, multifamily, petrochemical, institutional, renewable energy and aviation.

Collectively, the projects achieved a total recordable incident rate of 0.68—70% below the 2025 industry average TRIR of 2.3. Ninety-eight percent finished within the final contract budget despite collectively overcoming 2,647 days of delays. Across the portfolio, contractors deployed a wide range of technologies, including robotics, telematics, drones, virtual reality and artificial intelligence.

The data also challenges several longstanding assumptions about high-performing construction projects. While many EIC projects exceed $100 million in value, nearly 200 are valued below $20 million, suggesting the practices driving excellence are not limited by project size. The portfolio also demonstrates that merit shop contractors are successfully delivering large-scale, technically complex projects while achieving industry-leading safety performance.

Taken together, the portfolio significantly outperformed broader industry benchmarks in safety, budget reliability and schedule management—raising an important question: What were these projects doing differently?

The data points to several leading indicators that consistently show up in award-winning construction.

THE VALUE OF EARLY ENGAGEMENT

Project success begins with procurement strategy and the services purchased during project development.

All procurement methods were represented across both general and specialty contracting. However, 60% of projects were procured primarily on value- or qualification-based selection, while 40% were procured primarily on price. Of the price-based projects, half were awarded through select bidding processes involving prequalified contractors.

While much of the broader construction market still relies heavily on price-driven procurement, EIC projects skewed strongly toward qualification- and value-based selection (encompassing both the “value-based” and “solely negotiated” designations in the preceding and above infographics).

Every market sector selected contractors primarily on qualification at least 50% of the time. The high-tech/data center sector and renewable energy sector relied most heavily on qualification-based procurement, at 74% and 75%, respectively.

“Owners are increasingly seeing that selecting a construction partner based on best value, not just low price, leads to savings overall,” says Buddy Henley, president of Gaithersburg, Maryland-based Henley Construction. “Having a trusted partner engaged during design allows risks to be identified earlier and problems to be solved before they become costly. That early collaboration improves cost certainty, supports smoother schedules and significantly reduces surprises in the field.”

Government projects relied most heavily on open hard bid or price-based procurement, using that method 27% of the time. By contrast, the high-tech/data center market procured just 15% of projects through open hard bid.

Among general contractors, 74% were selected primarily on a qualification basis. Nearly one-quarter of those projects were solely negotiated, and those projects represented the highest average contract value at approximately $101 million.

“The most successful projects are the ones that bring the design team and construction manager together at the very beginning. Early collaboration improves constructability, clarifies scopes for the trades, and reduces gaps that create risk,” Henley says. “That early alignment leads to better budget predictability and stronger trade relationships, which directly supports safer and more successful projects.

When owners focus on value-based procurement instead of low bid alone, the outcomes are consistently stronger. Choosing teams based on experience, collaboration and the value they bring creates real partnership across the project. We see better cost control, higher-quality results and safer jobsites when the right team is selected from the start.”

Lorri Grayson, partner and founder of Rehoboth, Delaware-based GGA Construction, echoes Henley’s sentiments. “Early involvement creates an atmosphere of strong collaboration among project stakeholders. It enables the project team to define the scope of work, identify long lead items and, most importantly, control costs from the earliest stages,” she says.

“It also helps develop a bid strategy that responds to current market conditions. For example, early involvement on our current project, The Continental, located at the University of Delaware, saved the owner over $5 million on a $90-million project,” Grayson says. “Early coordination allowed us to identify critical procurement needs and minimize budget risks, resulting in a more efficient and cost-effective process.”

That emphasis on early collaboration and value-driven procurement was reflected throughout the EIC portfolio data. Just 18% of general contractor projects were procured through open hard bid, and those projects represented the lowest average contract value at approximately $15 million.

The owner perspective also supports early contractor involvement.

“Successful projects are built on strong partnerships rooted in trust, transparency and psychological safety—where titles are set aside and teams feel comfortable speaking openly to solve problems together,” says Spencer Moore, vice president and chief facilities officer for globally renowned cancer center UT MD Anderson. “Early collaboration creates that foundation, allowing teams to address challenges with humility and ownership before moving toward solutions.”

That same emphasis on qualifications, collaboration and long-term value also appeared in how specialty contractors were selected across the EIC portfolio. Specialty contractors were procured primarily on qualification 46% of the time, while 31% were selected through select bid and 24% through open hard bid. Contract value did not appear to significantly influence procurement methodology for specialty trades.

One of the more surprising findings in the data was that procurement strategy did not necessarily dictate contract structure. Regardless of how projects were awarded—whether through qualification-based selection, negotiated work or open bid—top-performing projects utilized virtually every form of contracting across the portfolio.

One notable distinction emerged between general and specialty contractors: Lump-sum contracting overwhelmingly dominated among specialty contractors regardless of procurement method.

THE PRECON ADVANTAGE

Across all market sectors, preconstruction services were provided on 74% of projects—well above what many contractors would consider typical across the broader marketplace. General contractors delivered preconstruction services on 73% of projects, while specialty contractors did so on 75%.

“Early involvement allows specialty contractors to contribute practical, experience-based insight before key decisions are locked in. When we’re engaged during preconstruction, we can identify coordination challenges early, help refine scope and sequencing, and offer practical yet innovative solutions to tough problems–reducing rework,” says Matt Terry, president of Dallas-based mechanical contractor TDIndustries. “That upfront collaboration directly improves schedule reliability, cost certainty and overall project performance.”

Steve Grauer, executive vice president for Hensel Phelps, agrees. “In my experience, the best outcomes to project success on complex projects are rooted in project teams that exemplify a high level of trust, practice transparency, have accountability, truly collaborate, and have a high level of executive commitment and engagement in the project and where there is open communication by all the stakeholders,” he says. “These traits are best embedded when project teams have some type of early engagement, giving them an opportunity to work collaboratively to resolve early challenges and work to build personal relationships prior to the start of construction.”

Notably, no preconstruction services were provided on 51% of projects procured through open hard bid.

While preconstruction services were utilized across all procurement methods and contract structures, the combination of open hard bid procurement and lump-sum contracting most frequently resulted in projects without preconstruction involvement.

Twenty-six percent of all EIC projects did not utilize preconstruction services, and 75% of those projects followed the open hard bid/lump-sum model.

FROM PLANNING TO PERFORMANCE

At a time when the construction industry continues to battle cost escalation, labor shortages and schedule disruption, EIC projects significantly outperformed broader industry benchmarks in safety, budget reliability and schedule management. The EIC portfolio overcame more than seven years of cumulative delays, delivering 98% of projects within budget and achieving a TRIR of 0.68.

The next question? Whether procurement methods, contract structures or preconstruction services contributed to those outcomes.

When comparing planned project duration to actual construction duration—including delay recovery—projects utilizing preconstruction services demonstrated stronger performance.

Projects with preconstruction services showed slightly better schedule outcomes overall. Fifty-two percent achieved shorter actual durations compared to projects without preconstruction services.

More importantly, projects with contractor involvement during preconstruction overcame more delay days and exhibited lower schedule variation.

Projects without preconstruction services experienced a 14% variance between planned and actual construction duration, including delays.

The same trend appeared across contract structures. Lump-sum contracts—which included preconstruction services on only 47% of projects—experienced an 11% variance between planned and actual duration. Construction manager-at-risk projects, where preconstruction services were included on 96% of projects, experienced only a 1% variance.

The trend became even more pronounced among general contractors. Design-build and CMAR delivery methods significantly reduced schedule duration variance compared to lump-sum and time-and-materials contracts. This aligns with the fact that design-build and CMAR projects incorporated preconstruction services on 90% and 96% of projects, respectively.

“The biggest gains we see come under the construction-manager-at-risk approach. Early cost validation during design helps identify savings without sacrificing quality,” explains Henley. “Clarifying scopes and resolving issues early reduces financial risk and improves safety across all trade partners.”

Among specialty contractors, preconstruction services also reduced schedule variation regardless of procurement method or contract type. Projects without preconstruction services experienced a 25% schedule variance. When specialty contractors participated in preconstruction, that variance was reduced by at least half.

Although 98% of EIC projects finished within the customer’s final approved budget, variation still existed between original and final contract values through approved change orders.

Projects utilizing CMAR and design-build delivery methods experienced lower budget variation than lump-sum and time-and-materials contracts, suggesting fewer scope changes and change orders over the course of construction.

No significant correlation emerged between procurement method, contract type and safety performance, with one exception: time-and-materials projects recorded an exceptionally low TRIR of 0.04.

Time-and-materials contracting was most common in industrial, infrastructure and renewable energy markets.

CONSTRUCTION TECHNOLOGY

Technology adoption continues to expand across the construction industry.

  • The four most commonly used technologies during the past three years remained consistent:
  • Project-management platforms
  • Safety workflow technologies
  • Drones
  • Jobsite security technologies

TECHNOLOGY MOVES TO THE CENTER

Just three years ago, artificial intelligence was virtually absent from EIC projects. Today, 18% of projects report using AI technologies.

Importantly, no major technology category has declined in usage over the past three years, suggesting contractors continue to realize measurable return on investment.

Technology deployment also spanned all contract types and project sizes.

Construction technologies were utilized across projects of every size category. Data indicates that technology deployment frequency remains consistent regardless of project dollar value.

“During the past three years, we have experienced unprecedented growth which we attribute to two key factors,” says Rob Griffith, chief operating officer of Gaylor Electric. “First, we are collaborating with our customers earlier in the precon process. The second—related—factor is our commitment to utilizing innovations that increase efficiency and safety for our workforce and the speed at which we deliver reliable outcomes on projects.”

Projects utilizing safety technologies consistently reported lower TRIR rates than projects without those technologies.

The trend suggests that investments in safety-focused technology are contributing to improved jobsite performance.

“Technologies like BIM, VDC, field-management platforms and real-time reporting help teams communicate more effectively and make informed decisions faster,” Terry says. “Our longstanding investments in these tools give our teams a distinct advantage when delivering high-quality results. This amounts to better productivity, safer jobsites and more predictable outcomes for owners.”

WHAT THE INDUSTRY CAN LEARN

Companies qualifying for EIC awards should take pride in their performance. The data confirms that ABC’s EIC-awarded projects significantly outperform industry averages across safety, budget and schedule metrics.

  • The analysis also reinforces several broader conclusions:
  • Preconstruction services deliver measurable value
  • Technology adoption is accelerating and becoming a key differentiator
  • Safety leadership remains foundational to project excellence
  • High-performing contractors consistently deliver quality projects regardless of procurement method or contract structure

The data also provides insights worth sharing broadly across the industry. Regardless of project size, market sector or delivery method, the conditions for excellence can be created through intentional planning, collaboration, innovation and leadership.

SEE ALSO: ABC UNVEILS AWARD-WINNING CONSTRUCTION PROJECTS, NATIONAL CONTRACTOR OF THE YEAR, SAFETY AND DIVERSITY EXCELLENCE IN THE INDUSTRY

The post Inside Construction’s Highest-Performing Projects first appeared on Construction Executive.

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New Law Prompts ABC Minnesota/North Dakota to Design New Telecommunications Safety Training Program https://constructionexec.com/article/new-law-prompts-abc-minnesota-north-dakota-to-design-new-telecommunications-safety-training-program/?utm_source=rss&utm_medium=rss&utm_campaign=new-law-prompts-abc-minnesota-north-dakota-to-design-new-telecommunications-safety-training-program Tue, 12 May 2026 16:00:00 +0000 https://constructionexec.com/?p=65116 ABC Minnesota/North Dakota creates first-of-its-kind program for telecommunications installer safety training.

The post New Law Prompts ABC Minnesota/North Dakota to Design New Telecommunications Safety Training Program first appeared on Construction Executive.

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On the first day of the year, a Minnesota law requiring installers of underground telecommunication infrastructure broadband, fiber or phone lines (when projects utilize directional drilling, and/or work is being conducted within 10 feet of existing utilities) to undergo a 40-hour certification went into effect.

Originally passed in mid-2024 and proposed to go into effect in July 2025, the law’s requirements were postponed until January 2026, giving ABC Minnesota/North Dakota—in partnership with NCCER and the Minnesota Cable Communications Association—time to roll out their Safety Qualified Underground Telecommunications Installer training program, which would ensure the workforce of their contractor members were certified.

When ABC MN/ND first caught wind of this law, it quickly set to work on designing this program from scratch. It would need to encapsulate enough classes to satisfy the 40-hour requirement, with both hands-on (in the field) and hands-off (digital classroom) training portions. It would need to include a training addendum for those looking to become program instructors. It would need to be flexible enough to accommodate the demands of sometimes unpredictable and often odd construction hours. It would need to be offered in both English and Spanish. And it would need to be designed in one year.

This law being the first of its kind in the country, there was no precedent for similar programs which the chapter could reference. So, it did not shock the chapter when it was approached by Minnesota Cable in late 2024 once this legislation had passed. With a relatively small staff, Minnesota Cable was conscious of the cap on its abilities to build out a bulky safety program like the one this law would require—but just as with ABC, their members needed it. “Minnesota Cable asked if ABC was interested in partnering,” says Adam Hanson, president of ABC MN/ND. “So, we went through a few meetings and agreed to take it on.”

But each association still took pause with just where and how to begin designing the program. So, NCCER was not shocked either when it received a call to action. 

Robert Jones, digital director of learning at NCCER, says, “It just made perfect sense for us to be able to support ABC. To make sure that this chapter is a leader in the state in training people how to work safely, and not just in broadband.”

Jones says they also saw the bigger picture—a national one—which influenced the type of program that they would build. “We built the program modularly,” he says. Of the seven courses, the first focuses specifically on Minnesota regulations; the other six focus on digging-safety and equipment skills. “We designed it so that if another ABC chapter came to us under similar circumstances, we are able to readily respond.”

Having worked closely with NCCER over the past several years, Hanson was confident in this next venture. “I knew that there was great opportunity there,” he says. He was also confident about the national influence a program like this could have on construction safety. “We were not only building this for Minnesota contractors.”

Perhaps the SQUTI program was built for something bigger than Minnesota, but—as it originated there—what did the contractors in Minnesota think of this program?

Director of Government Affairs for ABC MN/ND Joel Hanson says, “A lot of the feedback I got from contractors included ensuring that we weren’t just covering the bare minimum. If they’re going to have to put people through 40 hours of training, it should be worthwhile.” Hanson collected information on preexisting training that contractors were already applying, as well as supplemental activities to include. “We wanted to make this a good value for the contractors.”

Having been enacted for almost half a year now, the program is already increasing overall telecommunications safety awareness and implementation, and the more contractors who enroll and pass, the more feel and see the safety benefits. “ABC MN/ND is proud to help lead the rollout out of SQUTI”, says Janet Artmann, ABC MN/ND’s safety programs manager, “SQUTI strengthens our industry by elevating training expectations and reinforcing a culture of safety on every jobsite.”

At the time of this publication, there were 214 participants and 51 instructors enrolled; 171 of whom have already earned their orange cards—which will need to be renewed every three years.

This SQUTI certification program is already proving successful—and historical. Artmann says, “We’re always advocates for the safest, best way to do anything. Being the first program of this kind out there and already having nearly 200 orange cards, if we can keep that consistency going and keep in the forefront of people’s minds, I feel like its success will be organic and lasting.”

SEE ALSO: INFRASTRUCTURE: GOING AFTER IIJA-FUNDED WORK TWO YEARS LATER

The post New Law Prompts ABC Minnesota/North Dakota to Design New Telecommunications Safety Training Program first appeared on Construction Executive.

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Nonresidential Construction Spending Down Again in March https://constructionexec.com/article/nonresidential-construction-spending-down-again-in-march/?utm_source=rss&utm_medium=rss&utm_campaign=nonresidential-construction-spending-down-again-in-march Mon, 11 May 2026 12:00:00 +0000 https://constructionexec.com/?p=65090 March witnessed a decline in various construction-related aspects, including nonresidential spending.

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WASHINGTON, May 7—National nonresidential construction spending decreased 0.2% in March, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau. On a seasonally adjusted annualized basis, nonresidential spending totaled $1.244 trillion.

Spending was down on a monthly basis in 9 of the 16 nonresidential subcategories. Both public and private nonresidential spending were down 0.2% in March.

“Nonresidential construction spending contracted yet again in March,” said ABC Chief Economist Anirban Basu. “While a large portion of the ongoing decline is due to steadily falling manufacturing-related construction activity, weakness is becoming more widespread. Both public and private sector activity fell in March, and the latter is now down more than 2% on a year-over-year basis. With the exception of the ongoing boom in data center construction (+34.3% year over year), there are few sources of momentum. Despite this ongoing weakness, however, contractors remain optimistic about the outlook, according to ABC’s Construction Confidence Index.”

SEE ALSO: CONSTRUCTION HIRING STILL EXCEPTIONALLY SLOW IN MARCH

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New Survey Reveals Three Trends Reshaping MEP Contracting https://constructionexec.com/article/new-survey-reveals-three-trends-reshaping-mep-contracting/?utm_source=rss&utm_medium=rss&utm_campaign=new-survey-reveals-three-trends-reshaping-mep-contracting Tue, 21 Apr 2026 12:00:00 +0000 https://constructionexec.com/?p=64958 Stratus reveals its findings from the 2025 State of MEP Annual Report.

The post New Survey Reveals Three Trends Reshaping MEP Contracting first appeared on Construction Executive.

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Stratus recently surveyed 144 construction executives across the mechanical, electrical, plumbing and sheet metal trades to understand where the MEP industry really stands-not where vendors say it stands, not where the conference keynotes suggest it stands, but where the people running these businesses and building these projects actually are today. 

The results are published in the 2025 State of MEP Annual Report, and while the full findings span fabrication trends, automation adoption, software maturity, metrics and KPIs, and workforce dynamics, three themes stand out clearly:

The Bigs Are Getting Bigger, and the Gap Is Widening 

This is the trend that should make every mid-market contractor pay attention. As mega projects such as data centers, semiconductor fabs, healthcare campuses and energy plants make up an increasing share of the construction pipeline, the large multi-trade MEP firms capable of taking on this work are disproportionately benefiting. 

The data backs it up. The survey found that contractors above $250M in revenue reported a median revenue increase of +14.5%, ten percentage points above the overall industry median of +4.5%. Firms with 500+ employees also showed +14.5% headcount growth, while smaller firms held flat. And it’s not just revenue—larger companies had larger fabrication footprints, higher prefabrication rates and more mature digital workflows than their smaller counterparts. 

What’s creating this gap? Scale, certainly. But it’s more than that. The large firms have invested in planning systems, BIM infrastructure and fabrication capacity that let them take on complex, multi-system scopes. 

They’ve built the preconstruction, fabrication and field execution muscles that mega projects demand. And, increasingly, owners are consolidating MEP scopes under fewer, more capable contractors by rewarding the firms that can self-perform across trades with connected workflows from design through installation. 

For contractors in the $50–250M range, the takeaway isn’t to panic, it’s to recognize that the competitive bar is moving. The firms pulling ahead aren’t winning because they’re bigger. They’re winning because they operate like connected enterprises, not collections of disconnected departments. That’s a gap any contractor can close with the right strategy. 

Prefabrication Has Become a Growth Strategy, Not Just a Production Tactic 

For years, prefabrication has been talked about as a way to save time on the jobsite. And that’s true, but the 2025 data tells a bigger story. Prefab is increasingly being used as a strategic hedge against the two biggest risks in the industry: material cost volatility and labor scarcity. 

Start with materials. The survey found that the median material cost increase over the past year was +8%—outpacing labor inflation, which came in at +2.5% at the median.

For the first time, uncertainty in material pricing has overtaken shortages as the industry’s primary cost risk, driven by tariffs, freight variability and supply inconsistencies. Prefabrication helps contractors control that variability by enabling earlier, more predictable procurement tied directly to digital models, a tightly controlled waste environment, optimized use of automating tooling and coordinated production schedules. 

Then there’s labor. Over 50% of respondents reported that labor availability worsened in 2025 compared to 2024, with the South and Midwest hit hardest. With hiring increasingly difficult, contractors are turning to prefabrication to increase output without proportional increases in headcount. Moving work from the field to a controlled shop environment with automated equipment means fewer workers can produce more, with higher quality and less rework. 

And here’s the performance kicker: Firms with over 60% prefabrication rates reported a +14.5% median revenue increase, compared to +4.5% for the industry overall. The industry’s median prefab rate sits at around 30%, but ranges widely—from 9.5% in electrical to 29.5% in piping and 19.5% in sheet metal. The variation reflects trade-specific constraints, but also a massive opportunity.

When contractors planning to expand prefab were asked what would enable that growth, the top answers weren’t about equipment, they were about adding dedicated prefab planners, standardizing design components and strengthening cross-team collaboration. 

In other words, prefab growth is a people-and-process problem, not a capital expenditure problem. The contractors who get that distinction are the ones scaling fastest. 

MEP Contractors Need Manufacturing Metrics—Not Just Financial Ones 

MEP contractors have increasingly adopted a production system methodology—a connected workflow that runs from BIM to fabrication to logistics to field installation. When it works well, it looks a lot more like manufacturing than traditional construction. But here’s the problem: The metrics most firms use to run their businesses haven’t kept up with that evolution. 

The survey found that 75% of contractors track project profitability and 89% track project profit versus estimate. Financial measurement is strong. But when you look at the operational metrics that actually drive those financial outcomes, the numbers drop off a cliff. Less than 30% of firms track VDC productivity or material logistics cycle time. Only 21% track on-time material and fabrication delivery rates on all projects. Material flow from shop to field—the logistics handoff that determines whether field crews are productive or waiting—is the least instrumented workflow in the entire industry. Most contractors know how a project ended financially, but can’t tell you why. They can’t see the cycle times, throughput rates, delivery accuracy or utilization data that would explain the variance between a good project and a bad one, or which systems and processes make money vs. lose money (eg. When is it better to use welded joints vs. grooved joints on a piping system). It’s like running a factory and only measuring revenue without tracking defect rates, production speed or on-time delivery.

The firms that are getting this right—the ones investing in operational KPIs—report better forecasting, improved billing cadence, higher schedule predictability and stronger margin control. As one respondent put it, integrating their VDC model with their estimate and ERP gave them a daily measure of gain and loss that was nearly impossible to track just a few years ago. 

Heading into 2026, 68% of respondents said they plan to increase investment in tracking shop and operational metrics. The contractors who will lead the next five years are the ones who stop managing by financial rearview mirror and start operating with real-time production data—from the BIM model through the shop floor to the installed product in the field. 

The Bottom Line 

The MEP industry is at an inflection point. The firms pulling ahead aren’t just bigger or better funded, they’re more connected. They treat fabrication as a coordination hub, not a production silo. They use prefabrication as a strategic lever, not just a time-saving tactic. And they’re building the data infrastructure to measure and optimize their operations the way manufacturers have for decades. This is called data-driven contracting—the idea that when you connect every workflow from design through installation and give contractors real-time visibility into what’s actually happening across their operations, you don’t just improve efficiency, but fundamentally change how decisions get made, how risks get managed and how profitability gets built.

The data from 144 industry leaders confirms the direction. The question for every MEP contractor now is: How fast are you willing to move? 

SEE ALSO:

Jake Olsen is the CEO of Stratus (www.stratus.build), a connected fabrication platform built for MEP contractors. The full 2025 State of MEP Annual Report is available at stratus.build. 

The post New Survey Reveals Three Trends Reshaping MEP Contracting first appeared on Construction Executive.

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Selective Growth: FMI’s 2026 North American Engineering & Construction Outlook https://constructionexec.com/article/selective-growth/?utm_source=rss&utm_medium=rss&utm_campaign=selective-growth Tue, 07 Apr 2026 12:00:00 +0000 https://constructionexec.com/?p=64451 Construction activity in North America is expected to stabilize but grow modestly in 2026.

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Construction activity in North America is expected to stabilize but grow modestly in 2026 as the industry navigates high interest rates, uneven private development and strong infrastructure demand, according to FMI’s 2026 North American Engineering & Construction Outlook. While overall spending is projected to rebound slightly, growth will vary significantly by sector as contractors balance risk, financing constraints and shifting project pipelines.

Key findings from the report include:

  • Modest spending growth: Total U.S. construction put in place is forecast to increase about 1% in 2026 to roughly $2.2 trillion after a slight decline in 2025.
  • Sector divergence: Public infrastructure and government-funded projects are expected to remain relatively strong, helping offset weaker activity in several private building segments.
  • Soft private markets: Sectors such as multifamily housing, lodging and traditional office construction continue to face headwinds from high financing costs and economic uncertainty.
  • Megaproject drivers: Data centers, infrastructure and certain advanced manufacturing projects are expected to remain key growth engines for the industry.

FMI notes that contractors are increasingly forced to make “sharper choices about where to compete and how much risk to take on” as growth becomes more selective across construction markets.

SOURCE: “2026 Engineering & Construction Outlook” FMI // fmicorp.com/insights/construction-outlook

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