Given the lingering concerns over federal work, contractors are holding out hope that the private market will rebound in time to smooth things out.

David Birtwistle, vice president of business development at Balfour Beatty Construction in Fairfax, Va., says he sees limited private work in the short-term but expects plans could loosen up in the next 12 months. In May, Balfour Beatty was selected to manage construction of the new National Public Radio headquarters.

Designed by Hickok Cole Architects of Washington, D.C., the project involves the adaptive reuse of an historic warehouse into a 333,000-sq-ft office building. Construction begins in the fall with completion scheduled for late 2012.

Birtwistle says he hopes to see new work generated in the coming months after the recent BRAC megaprojects. “There will be a big population shift in the market,” he says. “You’ve got over 25,000 people moving to Fort Belvoir [Va.] alone. Then there are the programs at Fort Meade [Md.] and others. People will move where they work and that could lead to a whole range of [commercial] projects.”

Still, some large commercial work appears ready to move now. In August, Turner Construction of Arlington, Va., was selected as construction manager of the $69-million North Bethesda Center Office One in North Bethesda, Md. The 14-story building is scheduled to complete in 2012.

In August, The JBG Cos. of Chevy Chase, Md., and Grosvenor of Washington announced plans to break ground on a $50-million residential project in September. The project would convert the former Whitman-Walker Clinic site into a mixed-use project with 125 units of residential and 18,000 sq ft of retail.

After a string of lawsuits, the Washington Convention and Sports Authority is reportedly prepared to move ahead on the $537-million convention center hotel at the former convention center site. The 1,167-room Marriott Marquis hotel is being developed with JBG and Marriott International.

Other stalled or troubled projects are also moving ahead. Skanska USA Building of Rockville was hired by Douglas Wilson Cos. in May to complete the 1015 Half St SE project. Douglas Wilson was selected as the receiver of the property in August 2009 after the bankruptcy of the original developer, Opus East LLC. The 442,000-sq-ft office and retail project is scheduled to complete in December.

In October 2009, Skanska’s new development arm, Skanska USA Commercial Development, chose the D.C. area to launch its new venture, buying out a 165,000-sq-ft office project at 733 10th Street NW. Work under the previous developer, PN Hoffman, stalled after an equity partner pulled out of the deal. Skanska is financing the entire $85-million project itself.

Chuck Brawley, executive vice president for Skanska’s D.C. operations, says the company is keeping its eye on opportunities to scoop up troubled properties, although lenders have been hesitant to foreclose on projects so far.

In the meantime, Brawley says he sees many developers keeping a close eye on the market. “More and more developers are talking about plans, dusting them off and seeing if we can freshen up the pricing,” he says. “If they can rework the proformas on these and see a clear path, some of these could go next year.”

Financing continues to be a real challenge. Larry Kramer, vice president of preconstruction at Harkins Builders in Marriottsville, Md., says private funding for multiunit residential work is “almost nonexistent” and the company has focused instead on projects backed with significant tax credits or HUD financing.

The company is currently building The Jordan in Arlington, which is a 90-unit affordable housing project being developed by AHC. The project is scheduled to complete next year.

Although opportunities today are meager, Kramer remains hopeful for 2011.

“We do see light at the end of the tunnel,” he says. “We’ve been talking with several developers who have projects on hold that are looking at 2011 to get things moving. We should start seeing some of these large projects coming back. It all revolves around financing, though.”