Week of February 23, 2026

New Section 122 Tariffs Add Limited New Cost Pressure But Extend Uncertainty

• After the Supreme Court invalidated much of the Trump administration’s International Emergency Economic Powers Act-based tariffs, the White House quickly imposed a 10% Section 122 surcharge on most imports effective Feb. 24, 2026, preserving elevated tariff exposure for construction materials and equipment. The tariff may increase to 15% and will remain in effect for 150 days unless Congress acts.

• Core tariff exposure for construction remains largely unchanged as primary steel and aluminum stay subject to existing Section 232 duties, and many equipment and fabricated components used in infrastructure projects now face the new 10% surcharge.

• Additionally, contract and cost allocation risks for firms, such as price volatility and importer-of-record liability, could force contractors to absorb costs or build contingencies into bids if contract language does not clearly allocate tariff increases.

• Elevated tariff levels and volatility could increase construction costs, tighten pricing windows, influence project financing decisions, and strain publicly funded projects with fixed budgets, potentially affecting project pipelines and bids.

Architectural Billings Decline, Signaling Potential Future Weakness

• Architectural billings declined further in January 2026, with the AIA/Deltek Architecture Billings Index (ABI) falling to 43.8 from 47.1 in December, indicating a larger share of firms experienced reductions in billings month-over-month.

• New project inquiries and signed design contracts both weakened in January — inquiries dropped for the first time since April 2025 and design contracts declined, reflecting ongoing client uncertainty and smaller new projects.

• Billings fell across most U.S. regions and practice types, with only the South showing steady figures and all other regions (Midwest, West, Northeast) contracting; multifamily residential firms saw a slower rate of decline but still no growth.

• This sustained contraction in architectural billings signals a continued soft market for design services and potentially less construction activity ahead, since the ABI is a leading economic indicator tracking future nonresidential construction demand.

February 16, 2026

PRIME AE Group (PRIME AE), a Maryland-based multidisciplinary engineering and architecture firm, backed by Platform Holdings Capital, has acquired Klavon Design Associates (Klavon), a Pennsylvania-based landscape architecture and planning services provider across federal, state, local, and private client sectors. This strategic move enhances PRIME AE’s multidisciplinary design platform while positioning Klavon for sustained long-term growth. Kurt Bergman, CEO of PRIME AE, commented, “By integrating Klavon’s capabilities, PRIME AE is expanding support for clients across multiple markets, particularly in landscape architecture, planning, sustainability, and federal work. Klavon’s long-standing experience serving the Department of Defense and other federal agencies strengthens our overall team and expands opportunities for collaboration across the organization.”

February 23, 2026  

GHK Capital Partners (GHK), a Connecticut-based middle-market private equity firm, has acquired CPL, a New York-based provider of architecture, engineering, and consulting services for the built environment. This acquisition positions CPL to advance its growth strategy and further its goal of becoming a nationwide firm through expansion into new regions and end markets, continued investment in technology initiatives, and strategic M&A. Gil Klemann, Managing Partner of GHK, stated, “We are thrilled to partner with CPL. Over the past 50 years, CPL has developed a reputation as a trusted advisor to asset owners as they navigate the life cycle of complex, multi-site facility networks with specific customer needs.”

February 24, 2026 

Huitt-Zollars, a Texas-based full-service design firm, has acquired Vasquez Marshall Architects (VMA), a California-based architecture firm with experience across federal, higher education, commercial, and interior architecture. This acquisition strengthens Huitt-Zollars’ offerings in Southern California, particularly its design-build capabilities for federal clients. "Partnering with Huitt-Zollars allows us to elevate what we can offer our clients, especially on large, integrated Federal projects," said David Vasquez and Robert Bodenhamer, Principals at VMA. "It allows us to offer our clients expanded services, greater resources, and the ability to support projects at a larger scale while maintaining the service they expect from us."

February 25, 2026 

SAM Companies (SAM), a Texas-based geospatial and inspection solutions provider, backed by Peak Rock Capital, has acquired Inland Geodetics (Inland), a Texas-based land surveying firm that serves water utility, transportation, and local government clients. This strategic move enables SAM to strengthen its presence and services in Texas by leveraging Inland’s local expertise and strong client relationships. “SAM continues to invest in firms that bring strong technical expertise, trusted client relationships, and leadership talent,” commented Chris Solomon, President and CEO of SAM. “Inland Geodetics has earned a solid reputation throughout Central Texas for delivering dependable, high-quality surveying services. Their professional capabilities and regional experience complement our existing services and position us to deliver even greater value to our clients.”

On Introduce a Child to Engineering Day 2026, the Campos Foundation, a foundation supported by Campos EPC, played a leading role in advancing early STEM engagement by hosting readings of Engineer Someday and organizing hands-on engineering activities for students. At a flagship event in Miami, organizers read the book to elementary school students and guided interactive STEM exercises, ensuring each child also received a copy to take home. The Foundation’s efforts helped transform story time into excitement around engineering design, reinforcing representation and career awareness at an early age. Through collaboration with partners such as Reading Is Fundamental and through expanded international outreach, including events in Costa Rica and Chile and book deliveries to Venezuela and Peru, the initiative extended its reach to 18 countries, broadening community access to engineering education.

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.