Fed budget cuts will yield more rehabs, less new construction

Reduced federal government construction budgets are likely to mean agencies will favor rehab of structures over new construction. The federal government spent $39.4 billion on construction in 2010, but will slash that amount by $2 billion in 2012, according to the Obama administration’s proposed budget.
(http://www.bizjournals.com/washington/blog/fedbiz_daily/2011/08/agencies-to-spend-more-to-maintain.html [2])

Federal spending on architecture and engineering services will see modest growth to $9.5 billion in 2016 from $8.1 billion this year, as agencies try to extend the life of existing buildings and comply with various mandates for energy efficiency, data consolidation, physical security, and teleworking, according to a report by Deltek Inc.