Airport Improvement: Lots More Money Allocated
The Federal Aviation Administration (FAA) has announced new grants to 280 airports across the country, aimed at improving critical infrastructure and safety. Where’s the action and how can you get in on it? Read on for updates on airport construction as well as insights on improving your capacity to bid on local public projects big and small.
Airport Infrastructure Grants
The Airport Improvement Plan at the FAA has announced a $1.1 billion investment aimed at “enhancing safety on our runways, and expanding family-friendly features in terminals across the country. This…investment includes critical safety tools like vehicle transmitters to ensure our air traffic controllers have the best visibility possible….” The funding will result in even more construction projects at airports across the country (46 states and three territories to be exact) including:
- $42.8 million to 10 airports for noise mitigation projects.
- $30.7 million to Hartsfield-Jackson Atlanta International Airport for runway reconstruction.
- $18.9 million to Shreveport Regional Airport in Louisiana for terminal expansion.
- $11.5 million to Mankato Regional Airport in Minnesota for a new contract tower.
- $2 million to McAllen International Airport in Texas for a terminal expansion that includes baggage claim, restrooms, nursing stations, and ticketing counters.
Importantly, $10.9 million is allocated to 61 airports for the purpose of equipping 3,000 airport vehicles with Vehicle Movement Area Transmitter (VMATs), so that controllers have the tools and technology needed to keep us all safe. As Brain Bedford, administrator at the FAA underscores, VMATS are critical for safety in “an increasingly complex National Airspace System.” Specifically, VMATS “provide our air traffic controllers with greater situational awareness of aircraft and vehicles moving on the airport surface…”.
$14,449,456,000 for Airport Construction
According to the FAA’s airport funding allocation summary, a total of $14,449,456,000 federal dollars have been allocated for airports from 2022 (remember the IIJA?) to 2026. Indeed, ambitious construction at airports has had many builders busy across the country, in the push to ensure air travel can accommodate more people, more efficiently. Runways, baggage systems, access roads, parking garages, public transit, check in areas, air traffic control towers and terminals have all been part of the effort.
Good To Do: Build Up Your Bidding Capacity
Winning even a small publicly funded build is a game changer for growth minded construction businesses. That’s because public infrastructure, school districts, transit systems, and civic facilities offer a structural advantage over private builds: financial security. Backed by tax revenues, municipal bonds, or federal grants, public projects tend to carry significantly lower risk, so contracts provide reliability for builders. However, stepping into larger public projects requires a strong balance sheet and higher bidding capacity.
To ratchet up your bonding capacity, try thinking like a surety underwriter as you focus on your cash flow and tighten up administrative habits that may be holding you back. When determining your bonding limits, surety underwriters look heavily at your liquid working capital and cash position. Sloppy administrative habits can quietly drain cash flow and place artificial caps on your growth. Present a rock-solid balance sheet to underwriters by tracking key liquidity metrics as outlined at the Construction Financial Management Association (CFMA). You’ll also find it helpful to review these tips on increasing your bidding capacity from national surety bond expert, Colonial Surety Company.
Buckle Up: Ready For Lift Off On Your Bidding Capacity?
Whether you are a local builder pursuing public builds for the first time or an established contractor scaling up, having the right bonding partner is critical, so come explore the flexible programs offered by Colonial Surety Company.We have streamlined solutions for builders at every stage:
- For Bonds up to $500K: Use our Hometown Bond Program.It’s a credit-based solution for those newer to bonds, allowing qualified contractors to obtain bid and performance bonds as needed, without a traditional surety line of credit.
- For Larger Bonds: Get armed with single and aggregate bonding limits, in writing, and even issue your own instant Bid Bonds, via The Partnership Account® for Contractors. Once qualified, get a surety bond line of credit for up to 20 million single, and 40 million aggregate. Receive free financial scores just for completing our easy pre-qual
Surety Bond programs for construction businesses of every size are right here:
Bonding Programs at Colonial Surety Company
In business since 1930, Colonial Surety Company is a leading direct seller and writer of surety bonds and insurance products across the USA. We are rated “A Excellent” by A.M. Best Company and U.S. Treasury listed. Let’s connect today: Colonial Surety Company.
