Public infrastructure projects have emerged as a stabilizing force for Northern Nevada’s construction industry as private development slows under the weight of high interest rates, rising material costs, and economic uncertainty.
While private-sector work has declined through much of 2025 and into early 2026, public works projects are sustaining revenue and employment for many of the region’s long-established general contractors.
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Founded in 1964 after completing a modest kitchen remodel, Q&D Construction has grown into Northern Nevada’s largest privately owned construction company, performing thousands of projects across multiple sectors. Today, public infrastructure accounts for roughly 90% of the company’s revenue mix, according to Chief Executive Officer Lance Semenko.
Among Q&D’s major regional projects is a joint venture with Road and Highway Builders to widen U.S. Highway 395 from McCarran Boulevard to Golden Valley Road in north Reno. The company is also preparing to begin work in early 2026 on a Nevada Department of Transportation (NDOT) project to replace seven bridges along westbound Interstate 80. The scope includes bridges at the Mae Anne Avenue overpass, Lawton overpass near Mogul, Mogul interchange, and Garson Road overpass.
Q&D will also resume work started in 2025 to repave 13.2 miles of Highway 50 from Spooner Summit to Stateline, a two-season project constrained to the May-to-October construction window. Crews have already completed the section from Stateline to the Cave Rock tunnels, Semenko said.
In aviation and utility infrastructure, Q&D is working with Clark Sullivan to install underground infrastructure for a new central utilities plant at Reno-Tahoe International Airport. The company’s aviation division has also formed a joint venture with Webcor Builders to construct the new ground transportation center at RNO.
Beyond transportation, Q&D is preparing approximately 600 acres at Victory Logistics District, handling grading and horizontal infrastructure to support future industrial development. Additional work at western U.S. airports and data center campuses at Tahoe Reno Industrial Center has helped the firm maintain steady employment.
“That’s 600 people still feeding their families and not going on unemployment,” Semenko said. “It helps the whole community.”
Looking ahead, Semenko expects activity to remain strong.
“As far as next year goes, we will be busy,” he said. “The data centers are driving a lot of work.”
Q&D’s aviation division recorded one of its strongest years on record, with projects spanning Fresno, California; Kalispell, Montana; Spokane, Washington; and Rock Springs, Wyoming.
“They are chasing work everywhere,” Semenko said.
While public infrastructure is providing stability, competition for private-sector work has intensified, particularly in the Reno-Sparks market, where fewer projects are moving forward.
Dan Angelesco, founder and president of DA Builders, said developers are increasingly reliant on value engineering and cost-avoidance strategies just to get projects off the ground.
“That’s the only way these jobs are happening,” Angelesco said. “Every single project seems like we give them a number per plan spec, and they need to drop something. Sometimes we will start construction and we are working it through, and sometimes they say we need to get to a certain number before starting.”
Construction costs have climbed steadily in recent years due to labor shortages, material price increases, and escalating permit and development fees. Angelesco cited a recent example in which a national daycare developer pulled out of Reno after determining the project could not be built at competitive costs.
“Reno is not cheap,” he said. “With permit fees, they were at $350,000 in development fees, and it’s $100,000 to $150,000 in other regions for the same 11,000-square-foot box. We value engineer, but the cost of construction is at all-time highs.”
High interest rates continue to pressure financing, Angelesco added, noting that while rates are no longer a surprise, they remain a limiting factor.
Competition has also intensified in bidding. Where DA Builders once secured three to four wins out of every 10 bids, the firm is now winning three to four projects out of 20, with cost consistently cited as the deciding factor.
“We are having to bid double the work to get the same amount of return,” he said.
Despite the slowdown, Grand Sierra Resort’s development of a 10,000-seat arena and 2,800-space parking garage for the University of Nevada men’s basketball team remains the largest private project currently underway in the region. The parking garage is scheduled for completion in 2026, with the arena expected to be finished ahead of the 2027 season.
As Northern Nevada’s construction market navigates continued cost pressures, public infrastructure investment is proving critical in maintaining jobs, stabilizing contractors, and keeping major projects moving forward into 2026.
Originally reported by Rob Sabo in Northern Nevada Business Weekly.
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