The Texas Transportation Commission has approved the first $250 million of about $2 billion in highway project contracts funded last year by Proposition 12 bond proceeds. Included in the contracts is a major corridor mobility project to widen Interstate 35 north of Waco from four to six lanes. The contract is for $165 million. Nearly 39% of the state’s population lives along the I-35 corridor. Roadway rehabilitation projects in 11 Texas counties account for 12 of the 16 approved projects, which are worth more than $84 million.
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.