Government Report

Only single-digit growth for government building projects
August 11, 2010

Construction spending for government buildings, excluding housing, education, and healthcare, expanded an estimated 18% in the fiscal year ending June 2008—a slight pickup from the 14% growth seen the prior year. Spending for public safety buildings is growing the fastest among government-related projects.

Looking ahead, construction spending for public buildings is projected to grow much more slowly, but still faster than project cost inflation. These buildings are constructed when the cash for contract or bond payments is available, and available funding from budget reserves is shrinking. The 2007-08 fiscal year began with aggregate state government budget reserves equal to more than 8% of annual expenditures, nearly equal to the 10%-plus peak five years earlier. Budget reserves had fallen to 2-3% of spending just past the end of the last recession. Two years of sub-par economic growth will reduce budget reserves to 5-6% of annual expenditures by June 2009.

Top 20 government design firms
(2007 billings in $ millions)


Company Billings
Source: 2008 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.

1. CH2M HILL 409.68
2. Jacobs Engineering Group 354.14
3. Arup 330.00
4. HOK 263.19
5. AECOM Technology Corp. 250.26
6. URS Corp. 192.00
7. Parsons Brinckerhoff 109.60
8. HNTB Architecture 84.51
9. Fluor 72.36
10. Rosser International 66.00
11. STV Group 63.72
12. Leo A Daly 53.34
13. Burns & McDonnell 52.92
14. Perkins+Will 44.20
15. RS&H 44.10
16. CUH2A 34.41
17. Gensler 34.30
18. Heery International 32.20
19. HDR Architecture 29.68
20. Skidmore, Owings & Merrill 28.16

Top 20 government contractors
(2007 construction value put in place in $ millions)


Company Value put in place
Source: 2008 Giants 300 survey Note: This ranking is based on firms that made the Giants 300 list.

1. Turner Corp., The 1,974.04
2. Clark Group 1,784.59
3. Hensel Phelps Construction 932.14
4. PCL Construction Enterprises 718.28
5. Fluor 657.37
6. Hunt Building Co. 549.08
7. Jacobs Engineering Group 538.23
8. Walsh Group, The 512.14
9. Gilbane Building Co. 481.66
10. M. A. Mortenson 469.77
11. Balfour Beatty Construction 397.62
12. Manhattan Construction 332.42
13. Skanska USA Building 320.00
14. JE Dunn Construction Group 316.22
15. McCarthy Holdings 295.27
16. Dick Corp. 270.72
17. Sundt Construction 223.19
18. Haskell Co., The 221.65
19. Hoffman Construction 178.20
20. Walbridge 176.44