Weekly Briefing: March 20, 2026
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Week of March 16, 2026
Early 2026 Sees Sharp Rise in Construction Costs, With Further Increases Looming
Construction input prices surged at a 12.6% annualized rate in early 2026, driven largely by rising energy costs. February alone saw a 1.3% monthly increase, according to the latest analysis from Associated Builders and Contractors released this week.
These early 2026 increases were largely driven by energy prices, with natural gas, unprocessed energy materials, and crude petroleum rising 10.9%, 6%, and 4.7% in February on a month-over-month basis, respectively. Costs also rose for key materials such as copper, lumber, and steel.
The data does not yet reflect the impact of the Iran conflict, which has pushed oil toward $100 per barrel and is expected to further increase costs through higher fuel and shipping expenses.
Higher input costs are beginning to ripple through the industry, contributing to project delays and posing potential risks to margins and project pipelines.
Federal Funding Disputes Expand as Second NYC Megaproject Follows the Gateway Case
The Metropolitan Transportation Authority (MTA) has filed a lawsuit against the U.S. Department of Transportation, claiming $58.6 million in withheld reimbursements tied to a $3.4 billion full funding grant agreement (FFGA) for the Second Avenue Subway Phase 2 project.
The project is already underway, with a $1.97 billion tunneling contract awarded, utility relocation in progress, and additional contracts pending.
The FFGA’s pay-as-you-go structure means the dispute is putting pressure on project cash flow, with downstream impacts on contractor payments and procurement sequencing across the active project.
The case builds on the legal argument used in the Gateway Hudson Tunnel dispute, reinforcing concerns that even executed federal funding agreements may not ensure reliable payment flows, posing risks of delays, sequencing disruptions, and cost increases for major infrastructure projects.
March 11, 2026
SOCOTEC, a France-based global risk management and technical consulting firm, backed by Cobepa, has acquired American Engineers Group (AEG), a Pennsylvania-based diversified consulting engineering firm. This acquisition will improve SOCOTEC’s ability to serve clients in the Mid-Atlantic and Northeast by leveraging the expertise and reputation of AEG. Nicolas Detchepare, CEO of SOCOTEC USA, commented, “AEG brings exceptional technical depth, an outstanding reputation for transportation infrastructure excellence, and decades of trusted client relationships throughout Pennsylvania and Maryland. As we establish our presence in these strategically important markets, AEG provides the ideal foundation for growth. Together, we will deliver enhanced capabilities and resources to support the region's critical infrastructure needs while maintaining the local expertise and client service that have defined AEG's success for more than six decades.”
March 12, 2026
McMillan Pazdan Smith (MPS), a South Carolina-based architecture and advisory firm, backed by Providus Capital Partners, has acquired MCA Architecture (MCA), a South Carolina-based design firm with expertise in serving the development, manufacturing, and energy markets. This acquisition strengthens and expands MPS’s industrial practice. Chad Cousins, CEO of McMillan Pazdan Smith, stated, “The partnership between McMillan Pazdan Smith and MCA brings together two highly talented, innovative, and experienced teams supporting advanced manufacturing and development, and thriving domestic and foreign direct corporate investments in the region. Working together, we are excited to combine and grow our clientele in the successful design and delivery of complex, high-impact projects in the nation’s most dynamic growth corridor.”
March 17, 2026
Apex Companies (Apex), a Maryland-based national multidisciplinary consulting and engineering services firm, backed by Morgan Stanley Capital Partners, has acquired CWE, a California-based firm providing civil infrastructure, water resources, and environmental engineering services. This acquisition strengthens Apex’s service offerings in California and provides CWE with access to additional resources to expand its geographic reach while maintaining existing client relationships. Shawn Doherty, CEO of Apex, said, “In combination with Apex’s other recent additions like Storm Water Inspection & Maintenance Services (SWIMS), Forsgren, and Tully Consulting Group, we now have, without a doubt, the leading end-to-end stormwater infrastructure capability in California–the world’s fifth largest economy. The innovative work being done in Southern California, which has unique water resource management challenges, is incredible, and I look forward to seeing how we share that innovation across the larger Apex platform.”
March 18, 2026
Salas O’Brien, a California-based employee-owned engineering and facility planning firm backed by Blackstone, has merged with Axiom, an Idaho-based structural design and engineering firm. This strategic move enables Salas O’Brien to better serve the manufacturing, healthcare, education, government, and commercial markets by enhancing its offerings to help clients manage risk and improve predictability. Darin Anderson, Chairman and CEO of Salas O’Brien, stated, “Axiom brings a distinctive approach to structural engineering that combines technical depth with a clear understanding of how projects are actually built. Their expertise in integrated steel delivery and advanced BIM capabilities deepens our support for complex projects from the outset, helping clients manage risk, control costs, and accelerate delivery.”
March 18, 2026
Trinity Consultants (Trinity), a Texas-based global consulting firm, focusing on the EHS regulatory compliance, built environment, life sciences, and water and ecology markets, backed by Oak Hill Capital, has acquired Process Improvement Institute (PII), a Tennessee-based consulting and training firm providing process safety management, risk management, and process reliability services. This acquisition expands PII’s geographic reach and impact while also supporting Trinity’s history of strategic growth to further expand its capabilities and expertise. “PII complements Trinity’s PSM capabilities,” commented Shishir Mohan, managing director at Trinity Consultants. “Bill Bridges and his team bring decades of applied experience, thought leadership and proven expertise in helping clients navigate complex industrial operations safely and efficiently. The acquisition also strengthens our ability to deliver advanced PSM services and training across North America, South America, Europe, the Middle East and beyond.”
March 18, 2026
DeSimone Consulting Engineering (DeSimone), a New York-based engineering firm, has merged with Constructive Engineering Design (CED), a Kansas-based firm that provides expert services in steel procurement, structural engineering, structural connection design, and detailing. This merger advances DeSimone’s strategy to build a multidisciplinary platform that better meets evolving client needs while enhancing its service model through more efficient, integrated, and in-house collaboration across specialized services. Stephen V. DeSimone, Chairman and CEO of DeSimone, said, “With CED’s expertise, we expand our capabilities in steel procurement, detailing, fabrication-ready modeling, and connection design, offering our clients greater speed, value, and innovation for project types ranging from data centers to advanced manufacturing facilities.”
Applications Open: ISI Technical Assistance Program (TAP)
Applications are now open for the Institute for Sustainable Infrastructure (ISI) Technical Assistance Program (TAP). TAP provides a collaborative opportunity to connect infrastructure owners from small and economically distressed communities with ISI Verification resources, subject matter experts, and academic partners. The program supports communities in advancing sustainable infrastructure projects through expert guidance, training, and waived Envision verification fees. Selected participants apply the Envision Sustainable Infrastructure Framework to a real project while building internal capacity and sustainability expertise.
Applications are open through May 4, 2026.
Learn more and apply using the link below:
The EFCG Weekly Briefing summarizes the week’s key news in the AEC industry, including M&A updates, and micro- and macro-trends, aggregated from industry-focused and global news sources.
To send any additional press releases or news from your firm that you would like us to share please email Clay Han at chan@efcg.com.