On Friday, November 5, Congress passed the $1.2 Trillion Infrastructure Investment and Jobs Act, which includes money for roads and bridges, broadband internet access, airports, waterways and ports and public transit, just to name a few things.
HORNE’s Managing Partner for Construction Joel Bobo advised construction companies of all sizes to start preparing now.
This is a once-in-a-lifetime opportunity for everyone involved, including construction companies and city, county and state governments. The changes and improvements covered in this bill will be transformational, but the time to prepare is now.
For larger construction companies, this means hiring subcontractors to help with the work. Government entities should start prioritizing their needs so they will be ready when bids are awarded and work begins.
Joel K. Bobo
Some of the factors to consider now include: Forming joint ventures in anticipation of labor needs, bonding capacity, amount of money allocated to 8a companies, certified payroll, bid process, pre-ordering materials and equipment, credit line and legal needs for negotiating contracts.
For example, equipment could be scarce, so start looking for used equipment for sale and companies going out of business selling assets.
But companies aren’t the only ones impacted by the bill. The money, particularly for roads and bridges, likely will flow from the federal government to state transportation departments and then to cities and counties.
Whether you are a large or small construction company or a government entity, HORNE can help you prepare to ensure your company or agency is ready to take advantage of the opportunities provided through this bill.
The bill covers the following:
- $110 billion for roads and bridges
- $66 billion for Amtrak (passenger and freight rail)
- $65 billion to expand broadband internet access
- $65 billion to rebuild the electric grid
- $55 billion to upgrade water systems
- $42 billion for airports, waterways and ports
- $39 billion for public transit
- $7.5 billion for charging stations for electric vehicles
- $7.5 billion for electric buses
If you have questions on how to ensure your company is prepared, please contact us.