The construction of a new $10-billion nuclear reactor in Maryland seem to be dead after Constellation Energy told the Dept. of Energy that it is no longer interested in negotiating a federal loan guarantee to support the project. In a letter to DOE, Constellation said it was unable to continue negotiations after it was presented with a “shockingly high estimate” of the fee the company and its joint-venture partner, Electricite de France, would have to pay to obtain the loan—$880 million. “Such a sum would clearly destroy the project’s economics (or the economics of any nuclear project for that matter),
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.