Luca Calarailli is a veteran of the construction industry, specializing in the complex intersection of architectural design and large-scale infrastructure. With a career defined by navigating massive federal projects and high-tech site developments, Luca brings a nuanced perspective on how major civil engineering firms are pivoting to meet modern demand. His expertise in leveraging regional acquisitions and materials management makes him a critical voice for understanding the current landscape of public and private sector construction.
In this conversation, we explore the surge in federal infrastructure and data center projects, the logistical complexities of high-speed deployments in remote regions, and the strategic management of a $7.2 billion backlog. We also discuss how contractors mitigate risks through selective partnerships and energy surcharges to maintain profitability amidst fluctuating market conditions.
Federal contracts are trending toward 15% of revenue, specifically regarding large tactical infrastructure in remote border regions. How do you manage the logistics of a $495 million project with a 14-month timeline, and what strategies ensure your subcontractors can handle the unique pressures of such high-speed deployments?
Managing a $495 million project over a tight 14-month window requires a shift from traditional slow-burn megaprojects to high-velocity execution. In Laredo, Texas, we look at the timeline as an asset rather than a liability because the fast pace provides much sharper visibility into our risk profile over a shorter duration. By the end of 2026, we expect to be approximately 40% complete with this work, which keeps the momentum high and prevents the project fatigue often seen in multi-year endeavors. To support this speed, we are extremely selective with our partners, as a $40 billion program along the border draws in many subcontractors who might be operating at levels far beyond their typical capacity. We prioritize those with proven resilience to ensure that the heat and isolation of the Southern Texas terrain do not lead to operational breakdowns.
Data center site preparation and materials now represent roughly 10% of operations across states like Washington and Mississippi. What specific civil and water infrastructure challenges do these projects present, and how does providing raw materials directly to these sites change your operational margins compared to traditional contracting?
Data center preparation is no longer just about building a concrete shell; it is about the foundational civil and water infrastructure required to sustain these massive, power-hungry hubs. We are currently active in states like Washington, Mississippi, and Oregon, where our “picks-and-shovels” strategy allows us to handle the site work and material supply long before a single wall goes up. This approach significantly improves our operational margins because we are providing the raw materials directly from our own sources, capturing value at multiple stages of the supply chain rather than just the labor. Whether we are tackling the intricate water cooling systems or the heavy-duty road materials required for heavy equipment access, controlling the source ensures we aren’t at the mercy of third-party pricing fluctuations or delivery delays.
The current project backlog has reached $7.2 billion, supported by recent acquisitions in the Utah market. When a major $300 million highway project is unexpectedly withdrawn, how do you pivot your resources to maintain growth, and what specific qualities do you look for when identifying future acquisition targets?
Maintaining a $7.2 billion backlog requires a diversified strategy where no single project, even a significant $300 million highway contract in California, can derail our momentum when it gets unexpectedly withdrawn. While such cancellations are rare, we immediately pivot our focus to a bidding environment that remains robust at the federal, state, and local levels to fill that gap. When we look at acquisitions like our recent $100 million move for Kenny Seng Construction in Utah, we are searching for companies that offer regional stability and specialized talent to bolster our existing footprint. Our goal is to find targets that integrate seamlessly into our materials-led business model, allowing us to absorb the shocks of local market shifts while maintaining a 24% year-over-year increase in our overall backlog.
Energy surcharges have become a vital tool for protecting material profits against rising fuel costs. Beyond pricing, how do you mitigate the “remote jobsite” risk factor when deploying resources to isolated regions, and what steps are taken to ensure supplier stability during multi-billion-dollar federal programs?
To protect our material profits, we implemented energy surcharges back in 2021, which have proven to be a vital safeguard against the volatility of fuel prices and international conflicts. Beyond pricing, the “remote jobsite” factor is a logistical hurdle that we address by pre-positioning heavy resources and dedicated equipment directly within isolated regions to avoid the lag of long-distance hauling. We currently manage a $1.3 billion federal backlog, which means we must be incredibly diligent about supplier stability to ensure that massive federal programs do not exhaust our local partners. By vetting our suppliers through the lens of long-term reliability rather than just the lowest bid, we ensure that our remote deployments remain fully operational and that our crews have the materials they need precisely when they need them.
What is your forecast for the civil construction and infrastructure market?
I anticipate that the civil construction market will continue to move toward high-specialization sectors like data centers and federal security infrastructure, which now command a massive portion of our strategic focus. We’ve already raised our full-year revenue guidance for 2026 to a range of $5.2 billion to $5.4 billion, reflecting a significant jump from our previous estimates and a 30% increase in first-quarter revenue compared to last year. This growth is driven by a bidding environment that remains incredibly resilient across all levels, despite the occasional project cancellation or economic headwind. As we move forward, the successful firms will be those that can master the logistics of remote work while leveraging their own material supplies to shield themselves from the broader instability of the global market.
