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Senator: contractors warn of thin 2025 construction season after low bids and awards
Summary
Senator Bjorkman told senators federal highway funds are available but not being awarded fast enough; contractors warned that under $100 million has been awarded in the first quarter against a roughly $900 million department goal for 2025.
Senator Bjorkman said the Alaska Department of Transportation (DOT) will brief the Senate Transportation Committee about the Statewide Transportation Improvement Program and the outlook for the 2025 construction season.
“Associated general contractors for our state have expressed grave concern over the lack of construction projects and project dollars that have been put out to bid and awarded for this summer's 2025 construction season,” Bjorkman said. “Not quite $100,000,000 have been awarded in the first quarter. And with a goal of about 900,000,000 that the department has overall, folks are concerned that there will not be enough projects as well as dollars awarded to essentially keep these construction contractors in business for the year.”
Bjorkman said contractors previously ramped up workforce and equipment to meet anticipated work created by federal infrastructure investments, but they are not yet seeing the expected bidding and award activity.
Senators said they are awaiting DOT’s update at the Transportation Committee and will explore steps to make more projects ready to receive federal funds and to accelerate dollars out to bid. No specific actions or funding reallocations were announced at the briefing.
The concern was framed as both an economic issue for local contractors and a project-delivery problem that could affect roads and infrastructure work planned for 2025.
