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Government shutdown threatens construction jobs

13/10/2025, 16:02

The US construction industry is warning that the federal government shutdown, now in its 13th day, could disrupt projects nationwide and threaten jobs as federal officials needed for approvals and inspections remain furloughed.

The Associated General Contractors of America (AGC) has warned that the ongoing US federal government shutdown, now in its 13th day, could disrupt construction projects nationwide, GCR reports.

The employers’ group urged Congress to quickly pass a “clean continuing resolution” to allow vital infrastructure and public works projects to continue.

AGC chief executive Jeffrey D. Shoaf said federal officials needed to sign off on change orders, conduct inspections, and award new projects are likely furloughed.

“The longer the government is shut, the more likely construction employment around the country could be impacted negatively,” he said. “Construction workers are counting on Congress to do its job and fund the government.”

According to AGC guidance, fixed-price contracts already awarded would not be substantially affected. However, the shutdown would likely suspend operations for cost-type contracts, time and materials contracts, and IDIQ, MAC, and MATO contracts. Projects requiring access to federal facilities or oversight by federal officials could also face delays.