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Infrastructure Construction Opportunities on the Horizon! North Carolina's 2018-2027 State Transportation Improvement Program
April 18, 2018
Drivers will see more "Road Construction Ahead" signs over the next decade, which means BIG opportunities await infrastructure contractors and suppliers. How big? The North Carolina Department of Transportation ("NCDOT") was able to fund a total of 1,367 projects in the final 2018-2027 State Transportation Improvement Program ("STIP"), which is expected to exceed $9.6 billion in spending. The final STIP increased the number of projects by 167. The final 10-year transportation plan originated back in May 2016, when the NCDOT released information on almost 2,000 potential projects. Approximately $53 billion worth of projects were submitted to the NCDOT, and NCDOT officials worked with local governments and the public to rank the potential projects and determine the number of projects the North Carolina Board of Transportation ("Board") could fund moving forward. An initial draft of the STIP was released in January 2017 that included about 1,200 projects. In August 2017, the Board approved the 2018-2027 STIP, marking the completion of a two-year process during which NCDOT officials collaborated with local government organizations and the public in order to plan for North Carolina highway construction projects across the state during the next decade.

The STIP provides funding for infrastructure maintenance and construction across the state, in nearly every county, and is expected to support at least 300,000 jobs over the course of the STIP. The projects include 220 interstate maintenance and bridge projects and 344 non-highway projects, such as aviation, public transit, and railway construction, providing countless opportunities for a variety of contractors and material suppliers to participate in the STIP over the next 10 years. General contractors, as well as subcontractors in a variety of trades, including asphalt, concrete, grading and excavation, and hauling will have the opportunity to bid on and participate in the various projects over the course of the STIP.

Across the state, Interstates 40, 73, 74, and 85 in particular, are expected to receive critical connections and improvements. Improvements are fairly balanced across the Eastern, Central, and Western regions of the state. In Division 9 alone, impacting Davidson, Davie, Forsyth, Stokes, and Rowan counties, overall spending is expected to exceed $1 billion. The City of Winston-Salem area is expected to receive a significant amount of the Division 9 funding, and numerous projects are anticipated in the greater Winston-Salem area, including construction on the Northern Beltway from I-40 to west of U.S. 52/Future I-74 in Forsyth County and constructing the final segment of the Greensboro loop from Lawndale Avenue to U.S. 29 in Guilford County.

The 2018-2027 STIP undoubtedly will create substantial opportunities for both experienced public construction companies and new industry entrants across the state, and the bidding process on many projects will begin soon.

Contact Stephanie Eaton or Steven Hemric to learn more about how Spilman can assist you in taking advantage of the opportunities provided by the 2018-2027 STIP.
Construction Law Stephanie U. Eaton
336.631.1062 Steven C. Hemric