Infrastructure construction represents the backbone of construction industry spending, driven by massive public investment in transportation, utilities, and public facilities. With the Infrastructure Investment and Jobs Act (IIJA) adding $1.2 trillion in federal infrastructure investment, contractors positioned for this market access unprecedented opportunity levels.
This guide covers strategies for winning infrastructure construction work—from understanding different infrastructure sectors to navigating public works procurement and positioning your firm for success.
Understanding Infrastructure Construction Markets
Infrastructure construction spans diverse sectors with different owners, funding sources, and procurement approaches.
Transportation Infrastructure
Transportation represents the largest infrastructure segment:
Highways and roads: New construction, widening, rehabilitation, and maintenance of highway systems.
Bridges: New bridge construction, replacement, rehabilitation, and seismic retrofitting.
Transit: Light rail, commuter rail, bus rapid transit, and transit facilities.
Airports: Runway construction, terminal buildings, and airfield improvements.
Ports: Marine terminals, container facilities, and waterway improvements.
Rail: Freight rail construction and railroad infrastructure.
Water Infrastructure
Water systems require continuous construction investment:
Water treatment: Water purification plants and treatment facilities.
Water distribution: Pipelines, pump stations, and distribution system improvements.
Wastewater treatment: Sewage treatment plants and processing facilities.
Wastewater collection: Sanitary sewer systems and collection infrastructure.
Stormwater: Drainage systems, retention facilities, and flood control.
Dams and levees: Flood control structures and water storage.
Utilities and Energy
Utility infrastructure supports modern life:
Electric grid: Transmission and distribution infrastructure.
Renewable energy: Solar, wind, and battery storage facilities.
Natural gas: Pipeline construction and distribution systems.
Telecommunications: Fiber optic and communications infrastructure.
District energy: Heating and cooling distribution systems.
Public Facilities
Public buildings and facilities require ongoing construction:
Government buildings: Administrative facilities and civic centers.
Public safety: Fire stations, police facilities, and emergency centers.
Parks and recreation: Parks, trails, and recreational facilities.
Community facilities: Libraries, community centers, and public spaces.
Infrastructure Procurement Processes
Infrastructure construction follows public procurement rules with specific characteristics.
Competitive Sealed Bidding
Most infrastructure work uses competitive bidding:
Advertisement: Public notice of bidding opportunities.
Plan availability: Bid documents available to all interested bidders.
Sealed bids: Proposals submitted sealed and opened publicly.
Low bidder award: Award to lowest responsive, responsible bidder.
Bid bonds: Bid security required for most infrastructure work.
Alternative Contracting
Alternative delivery methods are increasingly used:
Design-Build: Combined design and construction responsibility.
Construction Manager/General Contractor: Early contractor involvement with GMP.
Public-Private Partnerships: Private financing and long-term operation.
Progressive Design-Build: Collaborative development of design and price.
Federal-Aid Requirements
Federally-funded projects include specific requirements:
DBE goals: Disadvantaged Business Enterprise participation requirements.
Buy America: Domestic content requirements for materials.
Davis-Bacon: Prevailing wage requirements.
Environmental compliance: NEPA and environmental permit requirements.
Civil rights: Equal employment opportunity and non-discrimination.
Finding Infrastructure Opportunities
Infrastructure opportunities come through multiple channels requiring systematic monitoring.
Federal Sources
USACE: Army Corps of Engineers civil works projects.
FHWA: Federal Highway Administration program guidance and funding.
FTA: Federal Transit Administration transit projects.
FAA: Federal Aviation Administration airport projects.
EPA: Environmental Protection Agency water infrastructure.
SAM.gov: Federal contract opportunities.
State DOT Opportunities
State Departments of Transportation manage highway programs:
Letting schedules: Regular bid lettings for highway projects.
Prequalification: Most states require contractor prequalification.
Plan availability: Electronic plan rooms for bid documents.
DBE programs: State DBE programs for federal-aid projects.
Local Government
Municipal and county infrastructure opportunities:
Capital improvement programs: Annual and multi-year capital budgets.
Utility departments: Water and sewer utilities.
Public works departments: Streets, drainage, and facilities.
Special districts: Water districts, transit authorities, and other special entities.
Using construction bid management software helps track opportunities across multiple agencies.
Infrastructure Estimating
Infrastructure estimating requires specialized approaches reflecting heavy civil work characteristics.
Quantity Development
Infrastructure takeoffs involve:
Earthwork: Cut and fill volumes, haul quantities, and material balances.
Paving: Asphalt and concrete quantities by type and thickness.
Structures: Bridges, culverts, and retaining walls.
Utilities: Pipe quantities by size, material, and depth.
Drainage: Storm drainage systems and structures.
Site development: Grading, erosion control, and site improvements.
Production Rate Analysis
Labor and equipment productivity drives infrastructure costs:
Equipment-intensive work: Production rates based on equipment capacity.
Crew configurations: Equipment and labor combinations for each work type.
Site conditions: Productivity adjustments for conditions and constraints.
Weather impacts: Seasonal considerations for outdoor work.
Unit Price Bidding
Infrastructure contracts often use unit price formats:
Bid items: Individual items with estimated quantities.
Unit prices: Price per unit for each bid item.
Quantity variations: Contract provisions for quantity changes.
Unbalanced bidding: Strategic pricing of individual items.
Winning Infrastructure Contracts
Success in infrastructure bidding requires specific strategies.
Prequalification Requirements
Most infrastructure owners require contractor prequalification:
Financial capacity: Demonstrated financial strength for project size.
Experience requirements: Prior experience on similar work.
Equipment resources: Adequate equipment for project execution.
Personnel qualifications: Key personnel with relevant experience.
Safety record: Acceptable safety performance history.
Equipment Strategy
Infrastructure work is equipment-intensive:
Fleet management: Adequate equipment for current and projected work.
Ownership vs. rental: Economic analysis of ownership versus rental.
Maintenance programs: Equipment reliability through preventive maintenance.
Technology integration: GPS, grade control, and productivity technology.
Subcontractor Management
Infrastructure contractors rely on specialty subcontractors:
Specialty trades: Traffic control, striping, landscaping, electrical.
DBE participation: Subcontracting to meet DBE goals.
Quote management: Systematic collection and evaluation of quotes.
Relationship development: Reliable subcontractor partnerships.
For finding qualified subcontractors, focus on firms with appropriate licenses and experience.
Regional and Local Considerations
Infrastructure work involves significant regional variations.
Geographic Market Knowledge
Success requires local market understanding:
Material sources: Aggregate, asphalt, and concrete suppliers.
Disposal sites: Locations for excess material disposal.
Labor markets: Local wage rates and labor availability.
Weather patterns: Seasonal working conditions.
Permit requirements: Local permit and approval processes.
Agency Relationships
Build relationships with key agencies:
Owner agencies: State DOTs, utilities, and municipalities.
Design firms: Engineers designing infrastructure projects.
Regulatory agencies: Environmental and permit authorities.
Industry associations: AGC chapters and heavy civil organizations.
Local Preference
Some jurisdictions provide local contractor preferences:
Geographic preferences: Preferences for in-state or local contractors.
Local hiring: Requirements for local workforce utilization.
Small business programs: Set-asides for small local contractors.
DBE and Small Business Considerations
Federal-aid infrastructure includes specific small business requirements.
DBE Program Requirements
Disadvantaged Business Enterprise goals apply to federal-aid work:
Contract goals: Specific DBE participation percentages.
Good faith efforts: Documentation of outreach to DBE firms.
DBE directory: Using certified DBE subcontractors.
Reporting requirements: Ongoing DBE utilization reporting.
Small Business Programs
Federal programs support small business participation:
Small business set-asides: Contracts reserved for small businesses.
8(a) Program: Business development for disadvantaged firms.
HUBZone: Preferences for firms in underutilized areas.
SDVOSB: Service-disabled veteran-owned business preferences.
Mentor-Protégé Programs
Mentor-protégé relationships support small business development:
Joint ventures: Teaming with larger contractors.
Capacity building: Developing capabilities through experience.
Market access: Gaining access to larger opportunities.
Contract Administration
Infrastructure contracts include specific provisions affecting risk and profitability.
Unit Price Adjustments
Quantity variations are common:
Quantity overruns: Adjustments when quantities exceed estimates.
Quantity underruns: Adjustments when quantities are less than estimated.
Differing conditions: Provisions for unexpected conditions.
Change order procedures: Formal processes for scope changes.
Schedule Management
Infrastructure schedules involve unique challenges:
Weather days: Provisions for weather-related delays.
Traffic restrictions: Working within traffic control requirements.
Permit windows: Seasonal restrictions from environmental permits.
Utility coordination: Coordination with utility relocations.
Claims and Disputes
Infrastructure contracts require claims management:
Notice requirements: Timely notice of claims and issues.
Documentation: Thorough documentation of impacts and costs.
Dispute resolution: Contract procedures for resolving disputes.
Partnering: Collaborative approaches to issue resolution.
Technology in Infrastructure Construction
Technology increasingly shapes infrastructure construction.
Construction Technology
Modern technology improves infrastructure productivity:
GPS machine control: Automated grade control systems.
Drones: Aerial surveying and progress documentation.
Telematics: Equipment tracking and utilization analysis.
Mobile technology: Field data collection and communication.
Digital Project Delivery
Digital processes improve project outcomes:
3D modeling: Civil 3D and BIM for infrastructure.
Digital plans: Electronic distribution and markup of construction documents.
Field technology: Mobile access to project information.
As-built documentation: Digital capture of completed work.
Conclusion
Infrastructure construction offers substantial, stable opportunity driven by essential public investment in transportation, water, and utility systems. Success requires understanding the unique characteristics of public works procurement, developing specialized estimating capabilities, maintaining appropriate equipment and resources, and building relationships with infrastructure owners and partners.
Position your firm for the infrastructure investment surge by building prequalification credentials, developing infrastructure experience, and systematically pursuing opportunities aligned with your capabilities. The infrastructure market rewards contractors who demonstrate capability and reliability.
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