The Los Angeles Board of Harbor Commissioners has approved the $1.2-billion San Pedro Waterfront Project, a 400-acre waterfront revitalization that is expected to take a decade to complete. The multi-phase project includes three new harbors, a public pier, a cruise-ship terminal and a “downtown” with promenades and 300,000 sq ft of commercial space. The project is currently under conceptual design. The port will fund approximately $900 million of the cost and expects to raise the other $300 million through private investment.
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.