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. |
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| 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. |
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| 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 |
