Construction project stress cools after ‘turbulent year’

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After a uneven 12 months full of uncertainty, development venture stress eased sharply in December, based on the most recent information from Cincinnatti-based ConstructConnect.

The Project Stress Index, a measure of development initiatives which were paused,  deserted or have a delayed bid date, declined 18.7% to finish 2025. The extent nonetheless hovers about 2.1% above the 2021 baseline, however the drop marks one of many lowest stress ranges recorded in 2025, Devin Bell, affiliate economist at ConstructConnect, advised Building Dive.

“December noticed a lower in all three stress indicators,” Bell stated. “The broad enchancment suggests confidence within the trade as we enter the brand new 12 months, following a turbulent 12 months marked by tariffs, a largely stagnant labor market and a historic authorities shutdown.” Mission abandonments plunged 27.2% in December, whereas builds placed on maintain dropped 10% and delayed bid exercise was down 12%. That’s a large turnaround from the stress stage seen in November, when each abandonments and on-holds spiked largely as a result of tariff impacts.

However the enchancment in general stress failed to shut the divide between private and non-private work, stated Bell.

On a year-over-year foundation, personal venture abandonments elevated 15.1%, Bell advised Building Dive. That coincides with the latest hiring and business outlook from the Related Normal Contractors of America, which indicated weak spot in development markets exterior information heart and energy initiatives.

“Personal sector abandonments surged as corporations confronted increased material costs,” stated Bell. “Later in 2025, the federal government shutdown disrupted federal funding, bringing volatility into public abandonment counts.”