Deltek Pulse: Architecture, engineering and construction (AEC) month in review, October 2016
Looking back two months to August 2016, the number of architecture, engineering and construction (AEC) bids released saw positive movement with more than a 6 percent gain in projects being issued by state and local governments. In September, and now October, that trend has moved in the opposite direction. The month-over-month change was -2.6 percent in the total number of AEC projects. Deltek has been closely monitoring this trend over the past year, and while overall project solicitations are down since July 2016, the total number of projects is actually higher than this period in 2015.
While it is difficult to completely account for the reasons behind the slowing trend in AEC projects, several factors may include the uncertainty with the upcoming election, both nationally and locally. Deltek recently wrote about the presidential candidate’s plans for the nation’s infrastructure, arguing that while the full details of both plans are not fully known, one thing is certain, billions of dollars are likely to be invested across the country. This would be great news for both contractors and the nation as a whole.
Like in September, state governments issued the largest percentage of projects, with 33 percent coming out of those agencies. City departments accounted for 31.2 percent, while county departments dipped slightly to 14.5 percent. Both colleges/universities and special districts accounted for 7.7 percent of the bids released.
For the first time this year, Texas issued the most bids (9.5 percent), followed by California (9.4 percent), Virginia (5.5 percent), Washington (4.9 percent) and Florida (4.8 percent). New York has regularly been in the top five, but dipped ever so slightly in October. Despite this, New York City issued the most of bids of any city, while Los Angeles County issued the most of any county.
Notable Solicitation Releases
- The Montana Department of Natural Resources and Conservation solicited bids for Engineering, Design and Construction Services for Flint Creek Project. Responses are due December 16, 2016.
- The South Jersey Port Corporation, New Jersey released a request for quotes for Geo-Tech Engineering Services. Responses are due December 15, 2016.
- Texas Prairie View A&M University issued a solicitation for a Design-Build for Intramural Field Construction Project. Responses are due December 10, 2016.
Notable Contract Awards
- Montgomery County, Maryland awarded a one-year contract to Anchor QEA, LLC for Engineering Services for Dredging Projects.
- The Connecticut Department of Administration awarded a contract to Hawley Construction Corporation for a New Police Facility for Western Connecticut State University. The value of the contract is $4,629,000.
- The Arizona Department of Transportation awarded a contract to Lee Engineering, LLC for Consulting Related to Transportation Planning On-Call Services.
New Lead Alerts
- The City of Baltimore, Maryland budgets $152,102,000 in FY18 for an Electrical Systems Upgrade.
- The City of Baltimore, Maryland has budgeted $64,200,000 in FY17-19 for a Central Library Renovation.
- The City of Suffolk, Virginia budgets $41,575,000 in FY17-26 for a Water Distribution and Transmission System Expansion.
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