- If President Donald Trump is successful in his mission to divert $3.6 billion from military construction projects to U.S.-Mexico border wall construction under a national emergency declaration, the move could chip away at the projected revenue of big contractors like Fluor Corp., McCarthy Building Cos. and Clark Construction Group, according to a report from Bloomberg Government.
- The president’s request represents more than a third of the $9.2. billion the Department of Defense spent on construction in 2018. That included $782 million in contract obligations to Fluor, $277 million to Clark, $236 million to Clark McCarthy Healthcare Partners, $231 million to RQ Construction and $181 million to Weston Solutions Holdings.
- Earlier this month, the DOD released a list of the $12.8 billion worth of projects that could potentially lose funding if the administration uses military construction funds for wall construction. The DOD’s accompanying report said that only those projects with award dates of after Sept. 30, 2020, are at risk of being canceled and that if its fiscal year 2020 budget request goes through on the recommended timetable, all of the projects on the list will move forward.
Fluor spokesman Brian Mershon told Construction Dive that the company expected the emergency declaration to have little to no impact on its business.
Based on 2017 revenue, Fluor was at the top of Building Design + Construction’s 2018 list of military contractors and construction managers with $931 million. They were followed by Gilbane Building Co. ($336.5 million), Hensel Phelps ($324.6 million), Clark ($281 million), The Weitz Company ($206 million), The Walsh Group ($191 million) and Lendlease ($176.6 million).
The White House could tap into more than $6.7 billion through the declaration between the Defense Department and other sources, as well as $5 billion in Department of Homeland Security funds requested in his 2020 budget proposal. This would add to the $1.4 billion Congress gave Trump for border fencing in the February spending bill. The latter amount cannot go toward construction of new wall prototype, but funding Trump could gain under an emergency declaration would reportedly allow completion of new and replacement barriers for 722 miles of the border.