Originally published in On-Site, ARB’s Construction Industry newsletter.
Since its enactment in 2021, the Infrastructure Investment and Jobs Act (IIJA) has spurred tens of thousands of projects nationwide. And the IIJA — along with state and local efforts to improve roads, bridges and so forth — is expected to keep creating jobs this year and beyond. But just because plenty of projects are available doesn’t mean you should bid on every one.
Assess funding
As with any job, first assess whether the entity funding the project can realistically bankroll it. Although one of the appealing things about publicly funded jobs is the low likelihood that you’ll get “stiffed,” it doesn’t hurt to identify precisely where the money is coming from.
The IIJA allocates about $1.2 trillion for various eligible projects over a five-year period. So, the federal money is likely there. State and local governments also typically set aside funds for infrastructure jobs, but their financial stability isn’t always as certain. Research whether the funding agency has incurred any major revenue losses recently.
Check the supply chain
Supply chains have largely returned to normal since the widespread slowdowns caused by the pandemic and other world events. Unfortunately, that doesn’t mean you’re guaranteed a wide-open market and lightning-fast delivery times. Look into the state of the supply chain you’ll deal with on any infrastructure project you’re considering.
Some contractors continue to maintain high inventory levels of critical or hard-to-get materials to insulate themselves against future disruptions. This strategy may be effective if you have enough cash on hand to cover the acquisition and storage costs. Other helpful measures include diversifying your supplier base and identifying alternate suppliers who can deliver materials of similar type and quality.
Look at the labor market
Before bidding on an infrastructure job, be sure you’ll have enough reliable, skilled workers available to complete the project. If you’ll probably need to hire more people, factor in the associated time and costs. The profit you ultimately make from the job, and perhaps others like it, may make hiring more workers worthwhile. But you’ll need to forecast the cash flow impact carefully.
If you’re a general contractor, also evaluate whether the subcontractors you’d typically use will probably be available. Prequalifying subs and maintaining a strong list of go-to providers can help ensure you have multiple options from which to choose.
Read up on compliance
Government-funded jobs mean government-mandated rules and regulations. Specifics will vary depending on the type of project and agency (or agencies) involved. Just be sure to know what you’re getting into.
First and foremost, refresh your understanding of the concept and specifics of prevailing wage rates. Also, learn about bonding requirements, safety and health standards, environmental regulations, and reporting and recordkeeping guidelines.
Get familiar with the tech
Look into what kinds of technology will be involved in the project. For example, many infrastructure jobs now use building information modeling (BIM) systems. Are you and your employees experienced with BIM software? If not, will you be able to get up to speed quickly?
In addition, jobs involving government agencies and multiple other parties could involve videoconferencing and a centralized project management platform. To comply with rigid safety protocols, you might need to invest in “wearable tech” to monitor workers’ whereabouts and physical conditions. Some publicly funded projects use paperless ticketing for materials deliveries.
Delve into delivery method
Infrastructure jobs don’t always follow the traditional design-bid-build approach. Some projects operate under more collaborative methods, such as:
- Public-private partnerships,
- Design-build, and
- Integrated project delivery.
Under such methods, job parties work together much earlier in the construction process to develop the scope, schedule and budget.
Choose carefully
Infrastructure projects and other publicly funded jobs undoubtedly present attractive opportunities for many construction businesses. However, they come with plenty of risks, too. Choose your targets carefully in consultation with your leadership team and professional advisors.
This publication is distributed with the understanding that the author, publisher and distributor are not rendering legal, accounting or other professional advice or opinions on specific facts or matters, and, accordingly, assume no liability whatsoever in connection with its use. ©2025
Construction and Real Estate Team Spotlight
Amy Gardella is a senior manager at ARB. She provides audit and attest services, as well as business advisory services, to a wide array of businesses, including automotive dealerships, construction companies, commercial entities, and employee benefit plans. She excels in assisting clients with complex accounting and financial reporting matters and is experienced in successfully managing audit, review, and compilation engagements.
