Top 10 Construction Companies in the U.S.
How the Biggest Construction Companies in the U.S. Are Building Our Cities & Workforce
As the U.S. works to bounce back from the pandemic, top construction companies are helping lead the way to recovery. Across the industry, you can feel the momentum in resilience, creativity, and the human spirit for problem-solving.
While spending has seen fluctuation lately, it’s expected to rise over the next several years. In fact, according to the U.S. Census Bureau, national construction spending is expected to exceed $1.55 trillion in 2021. That’s a 7.5% increase from 2020. Of that $1.55 trillion, $1.2 trillion is expected to go to the private sector, with much of the remaining funds addressing public needs. With the passing of a major Infrastructure Deal, official construction spending estimates may change. The deal is expected to generate about two million jobs per year, for the next ten years, with an emphasis on America’s physical infrastructure.
So, who are the largest construction companies leading the way? We’ve created a SlideShare of the top 10 construction companies in the U.S. to answer that exact question. Our list is composed of companies ranking on ENR’s Top 400 Contractors list. On the SlideShare you’ll find information about each company’s location, revenue, employees and year founded. Flip through below, then continue reading to discover insights about how a few of these top companies, and more, tackle some of the most common construction challenges.
10 of the Largest Construction Firms in the U.S.
Here are the top 10 construction companies in the United States as listed above in our SlideShare.
1. The Turner Corp
- Location: New York, NY
- Employees: 10,000
- Revenue: $11.77 billion
- Founded: 1902
2. Bechtel
- Location: Reston, VA
- Employees: 55,000
- Revenue: $17.6 billion
- Founded: 1906
3. Fluor
- Location: Irving, TX
- Employees: 53,000
- Revenue: $19.166 billion
- Founded: 1912
4. Kiewit Corp
- Location: Omaha, NE
- Employees: 22,000
- Revenue: $10.3 billion
- Founded: 1884
5. The Whiting-Turner Contractin Co
- Location: Baltimore, MD
- Employees: 3,800
- Revenue: $6.2 billion
- Founded: 1909
6. Sto Building Group Inc
- Location: New York, NY
- Employees: 2,200
- Revenue: $4.9 billion
- Founded: 1971
7. Tutor Perini Corp
- Location: Sylmar, CA
- Employees: 10,000
- Revenue: $4.76 billion
- Founded: 1894
8. AECOM
- Location: Los Angeles, CA
- Employees: 54,000
- Revenue: $13.24 billion
- Founded: 1990
9. Skanska USA
- Location: New York, NY
- Employees: 7,600
- Revenue: $6.5 billion
- Founded: 1971
10. DPR Construction
- Location: Redwood City, CA
- Employees: 5,900
- Revenue: $5.94 billion
- Founded: 1990
How Top Construction Companies Approach 3 Common Challenges
Of course, with opportunity comes new obstacles. If you’re adept in problem solving, the following obstacles are exciting challenges that can give you a competitive edge if tactfully approached. For a better understanding of how you can approach three very common challenges in construction, we’ve provided examples of how top firms have succeeded in solving these problems.
1. Complex projects with tight deadlines
As technology improves, expectations rise as well. Highly technical projects require significant resource planning, forecasting, and attention to detail. Add in tight turnaround times and the obstacles only increase. Gilbane Building Company, ranked #11 on 2021’s ENR400, is one of the construction companies tackling challenges like this one head-on.
The Rhode Island-based firm constructed a state-of-the-art engineering lab and academic facility for students at the Wentworth Institute of Technology (WIT) in downtown Boston, Massachusetts. This project was WIT’s first new academic building in over 40 years.
Gilbane was brought in to construct the new four-story, 78,000-square-foot academic building for engineering innovation and sciences. They were on a short, 15-month schedule. In order to meet the tight turnaround and represent the polytechnic university’s focus on innovation, the firm leaned on cutting-edge technologies and processes. Specifically, Gilbane leveraged prefabrication, design-assisted preconstruction processes, and virtual reality (VR) to meet the deadline and high-tech requirements.
Speaking to prefabrication as one of those crucial pieces to finishing on time, John Myers, Gilbane’s director of visual design and construction for New England says, “Off-site fabrication for us, from a safety standpoint, from a schedule standpoint, from the standpoint of being able to do things in parallel instead of in sequence, those are the things that make Gilbane successful.” For a deeper dive on this this impressive, yet challenging project, we recommend you read the full story here.
In the spirit of higher education, Gilbane also created a “living” classroom out of the project. It allowed WIT students to learn the most current and advanced construction methods as Gilbane went through the building process. Students got hands-on experience with each step of the project in real-time.
2. Identifying benefits of new technology in preconstruction
We’ve all heard the adage: “No one likes change.” It’s common for firms to face resistance to new technology and innovations. Usually, the resistance is not due to an individual’s resistance—it’s an organizational challenge. Improving structure and processes can be slow when the productivity and profit gains haven’t been fully understood by decision-makers. The truth is that technology proves to be an ally over and over again. We look at how two leading firms responded to different scenarios related to the need for new technology in preconstruction.
2a. Proving value of new technology with money saved
Multinational construction and development company, Skanska, ranked #9 on the 2021 ENR400, encountered some pushback from clients when moving from 2D to 3D modeling. The company decided to switch to 3D modeling for quantity takeoff to save time and money on projects.
The Skanska team has found that the best way to reassure hesitant clients is to provide proof of 3D modeling’s value. Kelsey Stein, National Preconstruction Technology Manager at Skanska explains, “By having better standards that we can give to the design team, it’s helped us perform a closer estimation while saving time and money on our projects.”
The 3D takeoff uncovered missing quantities that accounted for a 28% discrepancy….saving a tremendous amount of money that would have been lost under the traditional 2D method.
To provide greater context for clients, Skanska compared the results of a traditional 2D takeoff and a 3D takeoff using Assemble on the same project. The 3D takeoff uncovered missing quantities that accounted for a 28% discrepancy in the curtain wall scope. As a result, the firm saved a tremendous amount of money that would have been lost under the traditional 2D method.
2b. Building easy-to-use technology for your own employees
PCL, a construction company coming in at #14 on the 2021 ENR400, found themselves needing to create easy-to-use technology for their preconstruction managers—so they did just that.
Breaking out the challenge, PCL’s estimators and managers were adept at reviewing 2D drawings and managing the preconstruction process. However, the review of 2D drawings can be a very manual process and slow down workflows. This created inefficiencies. On top of that, preconstruction managers were regularly receiving more 3D models from the design team as they moved to digitizing their workflows.
Knowing they had to improve access to insights that 2D drawings couldn’t provide without significant effort, PCL created a multidisciplinary team to evaluate and identify their priority project KPIs. They determined which ones would be most effective at tracking design progress in real time and got to work building their own data management and interpretation tools.
“Predictability is the name of the game when it comes to construction. If we can better track the progress of design, then there will be little-to-no surprises when we receive milestone design deliverables.” -Nick Kurth, PCL Construction Enterprises Inc.
Their team can now easily access critical, real time project progress data through Autodesk Assemble, Autodesk Revit and a Power BI dashboard. This technology enables them to better interpret data and generate cost-effective designs with the most efficient use of materials.
Nick Kurth, VDC Manager at PCL Construction Enterprises Inc, shares why the dashboard was so critical, “Predictability is the name of the game when it comes to construction. If we can better track the progress of design, then there will be little-to-no surprises when we receive milestone design deliverables. This dashboard solution is another means for us to drive lean principles around target value design. It’s also essential to have transparency between our design team and our precon team, and that’s a key part of what this provides.”
3. Having geometric & cost certainty
As a Fortune 500 firm and ranked #8 on the 2021 ENR400, AECOM is used to partnering with clients in the public and private sectors to solve complex construction challenges. The premier infrastructure firm is known for its construction and design-build approach, which leads to optimized collaboration, productivity, and efficiency. Under the design-build construction delivery model, contractors, designers, and owners collaborate as a team to meet owner expectations.
AECOM America’s BIM Director, Russ Dalton, is responsible for helping the teams behind the firm’s construction and design-build approach win new business. He then supports them in making sure the projects are executed effectively.
Technology is essential for helping Russ do just that. His team, and AECOM as a firm, has embraced BIM 360 to achieve geometric certainty and cost certainty. They’re now moving toward operational certainty. Through their commitment to achieving certainty, and the technology that enables it, AECOM has carved out a competitive advantage.
“We’ve witnessed a 32% increase in productivity with this methodology.” -Russ Dalton, AECOM America
AECOM’s Barclays Center Arena project was a testament to the effectiveness of how they use BIM 360. Russ shares, “We looked at [this project] through predictable lenses to make sure that in the construction process it could be completed with geometric certainty and cost certainty.”
The $450 million project was not only finished early but came in under budget due to AECOM’s commitment to BIM 360. Russ says that the use of BIM 360 generated “$4.5 million in cost savings” on the project. He goes on to add, “We’ve witnessed a 32% increase in productivity with this methodology.”
The Road Ahead
These leading construction companies are showing the industry, and the nation, what’s possible on the road ahead. They’re also highlighting that it takes innovation, persistence, and the right tools to not only survive, but thrive in the face of challenge. Remember, obstacles are opportunities and the best days are ahead for our industry. Technology is helping us get there.
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A Practical Guide to Construction Accounting Software
Construction accounting software is a must-have, but may seem daunting to implement new solutions if your accounting technology hasn’t kept up with the complexities of your growing business. Managing the myriad of accounting activities across an entire construction business, or at any phase of an individual project, you’re going to want access to the most accurate, real-time numbers possible.
No stranger to disruption, the construction industry is experiencing higher levels of digitization than ever before. The pandemic has accelerated digital transformation by as much as seven years according to some experts. Technical tools and solutions are making some of the most complicated and manual practices in construction a concern of the past.
ƒThat includes accounting. Sure, accounting may have a bit of a reputation for being mundane. But the latest innovations in construction project management software provide an exciting level of financial clarity—especially useful to connect project finances to accounting decision-makers. If you’re exploring options to make construction accounting more efficient and accurate, you’ll find plenty of helpful information on choosing the right software below.
The Basics of Construction Accounting & What Makes It Different
At its most basic level, accounting helps businesses understand and capture accounting activities. It’s essential to business administration, management and financial reporting. Sometimes referred to as the “language of business,” accounting personnel document an organization’s accounting activities to accurately measure financial performance. This information is then communicated to owners, investors, creditors, and regulators. It will also dictate who you do business with and how.
Construction accounting takes into consideration the challenges that come along with the construction business. This includes tracking revenue, job costing, payroll, and managing several contracts and project risks simultaneously. Because the building process is so uniquely complex, accounting practices must be adapted to the construction industry.
Let’s look at what makes construction accounting different from most other businesses.
Everything Is Moving All the Time
The nature of construction is quite different from your average business. Outside of a major project roadblock, all aspects of a construction project are moving forward simultaneously. Instead of operating from a fixed location with a fixed set of products or services, construction projects rely on a range of locations, materials, and services. Everyone and everything tends to always be on the go. As a result, accurately managing milestones and finances throughout the life of a project—whether payables or receivables—can be challenging.
Unique Project- and Contract-Based Milestones
Firms typically work on multiple projects at a time. Instead of having one transaction, organizations may have multiple transactions occurring simultaneously across several project partners. Each project partner likely has their own set of timelines and milestones that impact accounting. Furthermore, it can take time to actually receive payment for services rendered. Some firms use project-based accounting. In this practice, each project functions as its own entity with profits and losses.
Another consideration for construction accounting is long-term contracts. It’s not uncommon for projects to take years to finish. In these scenarios, expenses and revenue may occur at different times than had been originally planned. Knowing the implications of when and how to accrue income and expenses across multi-year projects is an art in itself.
Tracking Sales
Businesses often create categories and cost codes to track sales. There are often multiple vendors on projects in construction, whether that’s to account for materials or services, there are often tens, if not hundreds, of billable line items on any given job. Traditional accounting practices leave a lot of room for error and confusion. Purpose-built construction accounting software can help to automate this process and meet the need for multiple service or product categories. Smarter categorization enables a much cleaner look at overall business performance. This is made especially easy with dedicated construction accounting software.
Industry-Specific Costs and Expenses
Every construction job involves direct and indirect costs that cross multiple categories. To make things even more complex, items that you might consider overhead expenses are often actually costs of goods sold because they are connected to a client project. Overhead costs can fluctuate month to month based on workers’ compensation, subcontractors, insurance, training, and more.
What to Include in Construction Job Costing
The complexity of construction accounting extends to calculating how much a project will actually cost the firm. That’s where job costing comes into play. This calculation method divides the project into specific tasks. That way, you can track expenses to the various tasks of a project. It provides greater visibility into which projects, activities, and materials are generating the most costs.
With job costing, you can separate the project into the main phases and then sort scopes of work into each phase. Organizations can then create unique construction cost codes to track the expenses. You may choose to create a handful of codes or multiple codes for a more granular view. After developing the codes, you can generally divide them into five categories: labor, materials, subcontracts, equipment, and overhead.
Labor
How much does your crew cost you? That’s what the labor categories in job costing can help you answer. To find this number for each project, start by calculating how much it costs per day to have your crew. This is likely to be your high level hires like general contractors, who you’ll interface with regularly. Don’t forget to include insurance, worker’s compensation, and taxes into the figure. You can then multiply the number of days you’ll have the crew on the project.
Be sure to include a buffer for unforeseen labor costs in your estimates. Project progress is rarely linear. You’ll also want to parse out subcontractor costs with the help of your general contractors. More on that below.
Materials
These costs can be both direct and indirect. For example, direct material costs can include items like concrete and steel. It’s often easier to link these items to a specific project. Indirect material costs include things like nails and caulking. You may also apply a margin for delivery and cleanup. It’s important to think of the life of a material, and any complimentary materials, when costing your project.
Subcontracts
General contractors are enlisted to manage construction activities and schedules, but are also instrumental in minimizing risks and issuing subcontracts. Each subcontract encapsulates costs for a general contractor and revenue to a subcontractor for specific scopes of work on a construction project. Managing subcontractor payment applications is fundamental to construction accounting, and also drives the upstream receivables, as subcontractor costs translate into general contractor revenue.
Equipment
Depending on whether or not your contracted labor brings equipment to the table, you may want to cost this out separately. At which point, identify your equipment supplier rates and multiply by the estimated length of the project or time needed with that particular asset. It’s possible that equipment needs will span multiple projects.
If your contracted labor does bring equipment to the table, work with them to identify expected costs for a clear picture of how your equipment impacts accounting activities over the life of a project.
Overhead
A lot of work goes on behind the scenes so you can’t forget to include the cost of doing business. That means you’ll need to measure accounting activities that go beyond the above mentioned categories. In other words, don’t forget about overhead when job costing. Some things to consider including would be full-time staff, office rentals, administration, and depreciation of equipment.
5 Steps for Revenue Recognition in Construction
Revenue recognition is the accounting of revenue when certain conditions are met on a project. Certain governing bodies issue revenue recognition standards to disseminate accounting best practices.
The Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) updated reporting standards for revenue recognition from contracts with customers in 2014. This standard is known as Accounting Standards Codification Topic 606 (ASC 606), or more simply, the new standard. Prior to the new standard, many organizations relied on the percentage-of-completion method and completed-contract method.
According to FASB, the intent for the latest guidance is to “report useful information to users of financial statements about the nature, timing, and uncertainty of revenue from contracts with customers.”
FASB has adopted a principle-based revenue recognition approach. With this approach, revenue is recognized according to two key factors. First, the contractor must meet performance obligations. Second, the control of goods or services must be transferred to the customer. This transfer can take place at a particular point in time or over a period of time.
To comply with revenue recognition standards, or ASC 606, be sure to follow these five steps:
- Identify the contract with the customer.
- Identify the performance obligations in the contract.
- Determine the transaction price.
- Allocate the transaction price to the separate performance obligations.
- Recognize revenue when (or as) the entity satisfies a performance obligation.
Top Construction Accounting Technologies
Dedicated construction accounting software solutions can help to optimize processes and automate manual tasks. As you consider ways to improve your construction accounting processes, keep these leading solutions in mind.
QuickBooks Online (Intuit): This cloud-based financial management software helps you manage your finances efficiently and gives you time back in your day. Create estimates, build invoices, track sales, monitor cash flow, and manage your customers as well as suppliers from one intuitive platform. Oftentimes, QuickBooks Online will be integrated with a project management platform to track costs and provide an operations team with the tools they need to control documents and manage budgets.
Morpheus: Connect any ERP to Autodesk Build’s leading budget and cost management solution for a truly integrated financial environment. No more double entry, manual errors or missed information. You gain full transparency from the field to the office on job costs. Trusted for over 20 years by the ENR 400.
DataStreet: DataStreet was built to eliminate time and material tag paperwork and reduce the amount of time spent on change order processing. The cloud-based project management platform increases transparency between your office and field teams. All of the data is stored in the cloud for easy access; use project-specific settings to customize your workflows and experience.
Rhumbix: Want to streamline your field operations? Rhumbix can do just that through easy capture of time and materials changes and construction labor costs. You’ll get all the data you need to make smart decisions about labor cost management, risk management, and safety, and they can integrate directly with accounting.
Sage: Autodesk Construction Cloud partners have built dynamic integrations between Sage 300 Construction and Real Estate and Autodesk Build, uniting accounting, project management, and field collaboration. Manage cost-related activities, streamline workflows, and connect data for greater real-time visibility into your project’s financial health.
Wrapping Up
As you can see, there’s a lot of nuances specific to construction accounting. The software solutions that exist are getting better at addressing these complexities every single day.
With the right construction accounting software, accurately job costing, tracking timelines, and adhering to the revenue recognition standards is much easier. It puts owners and contractors on the same page throughout the life of a project. Plus, the standardized approach makes tracking company-wide finances across all projects a much less daunting task.
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