Need More Money for Public Transportation? Stop Wasteful Construction Mandate

It’s time to put Pennsylvania’s construction laws in the 21st century and reinvest the savings in keeping Pennsylvanians moving.

By Jon O’Brien

Open any Pennsylvania newspaper over this past summer and you’ll read about a serious funding crisis in public transportation. SEPTA warns of service cuts, riders worry about fare increases, and regional transit systems across the Commonwealth struggle to keep buses and trains running. Without new investment, the mobility lifeline for hundreds of thousands of Pennsylvanians is at risk.

Yet while these urgent debates unfold, our state continues to waste millions of dollars every year on outdated construction mandates. At the heart of this waste is the Separations Act, a 1913 law unique to Pennsylvania that requires public construction projects to use multiple prime contractors: one for general construction, another for electrical, another for plumbing, and another for HVAC.

On the surface, this might sound like accountability. In practice, it creates duplication, inefficiency, finger-pointing, and costly delays. With four or more contractors working independently, coordination becomes a nightmare. Disputes often spill into litigation. Schools, courthouses, and state facilities take longer and cost more than they should — and taxpayers pick up the tab.

Meanwhile, every other state in the country, along with the federal government, allows public agencies to use modern, cost-effective delivery systems such as design-build or construction manager at risk. These systems give owners flexibility, streamline accountability, and have a proven track record of saving money while delivering quality projects on time. Pennsylvania alone forces public entities — from small school districts to large universities — into a fragmented system that inflates bids and extends timelines.

The results are obvious:

  • Higher costs: taxpayers pay more for every classroom, fire station, or state office building.
  • Slower projects: delays compound as multiple contractors clash over responsibilities.
  • Lost opportunities: dollars wasted on inefficiency could otherwise support public priorities.

Those lost opportunities matter. Right now, they could mean the difference between SEPTA keeping buses on the road or cutting vital routes. They could mean whether Pittsburgh Regional Transit can maintain service or be forced to shrink. They could even mean whether rural transit systems continue to connect seniors and workers to healthcare and jobs.

If Pennsylvania leaders are serious about solving our infrastructure and transit funding gaps, then modernizing the Separations Act must be part of the solution. We cannot keep protecting a broken law from 1913 while buses are being cut, riders are stranded, and taxpayers are stretched to the limit.

Opponents of reform argue the Separations Act prevents monopolies and keeps contractors honest. But in truth, the rest of the nation has moved on to modern procurement systems that are just as competitive and far more efficient. Private industry relies on them. States across the political spectrum rely on them. Pennsylvania stands alone in clinging to an antiquated rule that no longer works.

Public construction should serve the public — not outdated mandates or entrenched special interests. By modernizing the Separations Act, Pennsylvania can save millions, deliver projects faster, and free up scarce resources for the infrastructure that actually supports economic growth and quality of life.

Taxpayers deserve a government that spends smarter. Transit riders deserve reliable service. Communities deserve modern schools and facilities built on time and on budget. Reforming the Separations Act is a commonsense step toward all three.

It’s time to put Pennsylvania’s construction laws in the 21st century and reinvest the savings in keeping Pennsylvanians moving.

Jon O’Brien is Executive Director of the Keystone Contractors Association, a commercial construction trade association that represents major contributors to employment and economic growth in Pennsylvania.

Pennsylvania Construction Recap – Top Stories for Week Ending September 12, 2025

This week we pause to remember the lives lost on September 11, 2001, and honor the bravery of the first responders and everyday heroes who answered the call that day. May we never forget their sacrifice, and may we continue to stand united in their memory.

Here are the top construction stories from Pennsylvania this week:

SEPTA Avoids Cuts by Tapping into Reserves & Enacting Fare Increases: The Southeastern Pennsylvania Transportation Authority (SEPTA) is using $394 million in state-provided capital project reserves to restore transit services that had recently been cut to address a roughly $200 million deficit. The agency also approved a 21.5% fare increase, which is expected to generate about $31 million more annually. READ MORE.

Solar For Schools – Potential?: Despite reports on all this savings potential for going solar, only two schools in the Philadelphia school district currently have solar systems. The state’s Solar for Schools Grant Program has funded over two dozen school solar projects elsewhere in the region. READ MORE.

Harrisburg Revival Plans: Local planning experts are calling for renewed momentum in downtown Harrisburg development. A recent reflection points out a drop in large-scale projects since 2008, and challenges (funding, vision, parking) that have discouraged developers. READ MORE.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Weekly Construction Recap – Top Stories for Week Ending September 5, 2025

Here are the top construction stories in Pennsylvania this week:

Penn State Construction Update: Multiple transformative construction projects are ongoing at Penn State’s University Park campus, as reported by Centre Daily Times. Notable projects include the $700 million Beaver Stadium renovation, the recently completed Susan Welch Liberal Arts Building, and the $115 million Osmond North Building, set for completion in January 2027. Additionally, a ground lease was approved for a rehabilitation hospital at Innovation Park, though rezoning issues remain. These projects are redefining the campus and student experience in Centre County. READ MORE.

Yazoo Mills To Build 3rd Plant in York: Yazoo Mills, North America’s largest independent manufacturer of paper tubes and cores—is expanding in Hanover (York County) with a new 107,000-square-foot facility. The $14 million investment includes five high-speed production lines and is expected to be completed by January 2026, boosting capacity and operational efficiency. READ MORE.

PA Turnpike Installs Solar Microgrid, Aiming to Be First Sustainable Superhighway by 2040: The Pennsylvania Turnpike Commission has begun constructing a solar microgrid to power its Western Regional Office (Troop T barrack) in New Stanton, Westmoreland County. The initiative began on September 3, and reflects the Commission’s push for sustainable infrastructure improvements. READ MORE.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Weekly Construction Recap – Top Stories for Week Ending August 29, 2025

On Labor Day, we celebrate every worker whose skill, commitment, and perseverance help build the America we’re proud to call home. Happy Labor Day!

On this year’s Labor Day, we celebrate every worker whose skill, commitment, and perseverance help build the America we’re proud to call home.

Here are the top construction stories in Pennsylvania this week:

Restoring An Icon: Fallingwater Renovation Underway: A $7 million restoration project is underway at Frank Lloyd Wright’s famous Fallingwater estate in the Laurel Highlands. The two-year effort—set to wrap up by spring 2026—aims to eliminate chronic water infiltration by replacing roofs, repairing steel frames, injecting nearly 12 tons of grout into stone masonry, and restoring exterior walls. The work must uphold UNESCO and National Register standards, making execution especially complex. READ MORE.

$1.6 B Montgomery Lock & Dam Modernization: In Monaca, the U.S. Army Corps of Engineers has begun a $1.59 billion rehabilitation of the Montgomery Lock and Dam on the Ohio River. The project includes demolishing the auxiliary lock chamber and building a new, larger 110-ft × 600-ft primary lock. Completion is targeted for 2033, and work remains in early stages. READ MORE.

Fast-Tracking Renewable Energy Permits Ahead of Federal Deadline: Pennsylvania is accelerating wind and solar project approvals to qualify for expiring federal tax credits before July 2026, amid President Trump’s phase-out policy. Gov. Josh Shapiro is advocating for a state energy siting board to streamline permitting, similar to Michigan’s 2023 law, to cut bureaucratic delays and boost construction starts. READ MORE.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Weekly Construction Recap – Top Stories for Week Ending August 22, 2025

Here are the top construction stories for Pennsylvania this week:

Golf course sold for a data center: The Dauphin Highlands Golf Course in Harrisburg has been sold for $45.6 million despite $13 million in debt. The site is set for redevelopment into a data center, promising considerable tax revenue. The deal is expected to close by December 31, 2027, pending final conditions. READ MORE.

Detentions of construction workers by ICE: At least 25 migrant construction workers were detained while heading to work in Pennsylvania. Some were sent to a processing center in Moshannon Valley. The incident has drawn condemnation from immigrant rights groups. READ MORE.

Buildsylvania’s AI-Driven Construction Boom: Pennsylvania is experiencing a massive construction surge fueled by AI and energy demands, with $92 billion in private sector investments announced by U.S. Senator Dave McCormick. Projects include grid upgrades and dam refurbishments to support AI infrastructure, described as a “trillion-dollar, multi-front construction project” unprecedented in scale since the Industrial Revolution. READ MORE.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Weekly Construction Recap – Top Stories for Week Ending August 15, 2025

Here are the top construction stories in Pennsylvania this week:

  • U.S. Steel Clairton Coke Works Explosion: A tragic explosion at the U.S. Steel Clairton Coke Works near Pittsburgh on August 11, 2025, resulted in two fatalities and at least 10 injuries. The incident caused significant damage to the facility, with emergency crews continuing search and rescue operations for a missing worker. The cause of the explosions remains under investigation, and the event has raised concerns about safety and environmental issues at the plant, which has a history of accidents and pollution-related lawsuits. READ MORE.
  • Penn Hills AML Reclamation Project Success: The Penn Hills AML Reclamation Project in Allegheny County was highlighted this week for successfully addressing long-standing issues from abandoned coal mines, such as flooded basements and dangerous mine discharge. Completed by August 12, 2025, this award-winning project has eliminated these hazards, improving living conditions for residents. WATCH VIDEO.
  • State Budget Update Featuring Infrastructure Money: The Pennsylvania House approved legislation that includes $292 million in additional funding for SEPTA, aiming to forestall service cuts that could have slashed up to 50% of transit operations statewide. Furthermore, the bill proposes $325 million in highway funding and $275 million for rural roads, which would sustain and potentially expand crucial infrastructure construction initiatives. READ MORE.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Weekly Construction Recap – Top Stories for Week Ending August 8, 2025

Here are the top construction stories in Pennsylvania this week:

Pennsylvania is BOOMING: Pennsylvania’s construction sector is active, with $34 billion contributed to the state’s GDP in 2024 and 31,000 construction establishments. Projects like those in Pittsburgh and statewide infrastructure improvements (e.g., PennDOT’s 684 bridge projects in 2023) indicate robust activity. READ MORE.

Major Work on I-95 In Philly: Overhead sign structure installation will close I-95 North at night August 11-14 in Center City, with ongoing inlet repairs weekdays August 1-29 on I-95 North near Academy Road in Northeast Philadelphia. This represents one of the most significant traffic-impacting construction projects currently underway in the state. READ MORE.

Windfarm Upgrades Help with AI Data Center Growth: Exus recently secured over $158 million to boost capacity at the Twin Ridges wind farm in Somerset County—raising its output by around 30% to 170 MW—and to upgrade the Patton wind farm in Cambria County. These enhancements aim to meet skyrocketing energy demands from AI data centers across the state. READ MORE.

Stay Safe, Stay Informed & Keep Building Pennsylvania!

Pennsylvania Construction Weekly Recap – Top Stories for Week Ending July 25, 2025

Here are the top construction news stories across Pennsylvania for the week ending July 25, 2025:

  • Penn State University Construction Projects: Penn State continues to advance multiple transformative construction projects across its campus, including the recently completed Susan Welch Liberal Arts Building, the ongoing $115 million Osmond North Building (set for completion in January 2027), and renovations at Beaver Stadium, which could cost up to $700 million. These projects aim to enhance academic facilities, student housing, and athletic complexes, aligning with Penn State’s broader goals to improve campus life and infrastructure. READ MORE
  • Pennsylvania Budget Talks Stall Over Road & Bridge Funding: As the legislature works on the state budget, transportation funding has become a sticking point. Republicans are demanding substantial funding for roads and bridges—including up to $500 million in debt financing—while also resisting increases in public transit funding proposed by Governor Shapiro. This impasse has significant implications for the future of construction planning across the state. READ MORE
    • Pennsylvania Senate Designates “Construction Opioid Awareness Week”: The Pennsylvania Senate has officially designated the week of July 21-25, 2025, as “Construction Opioid Awareness Week” through Senate Resolution 133. READ MORE

    Stay safe, stay informed and keep building Pennsylvania strong!

    The Impacts of an Inefficient, Cumbersome Law

    The following article first appeared in the Keystone Contractor Magazine’s Spring 2023 edition. To view the entire issue visit: https://issuu.com/atlasmarketing/docs/the_keystone_magazine_spring_2023_final_issuu_0420?utm_medium=email&utm_source=sharpspring&sslid=MzcxtzQwMjE1MbcwAwA&sseid=MzI1MTUzNzOyNAAA&jobid=8e832794-eea0-4ecd-80ef-31f10ccb9ec3

    The Impacts of an Inefficient, Cumbersome Law

    The Separations Act – Wasting Tax Dollars Since May 1, 1913

    By Jon O’Brien

    President Theodore Roosevelt was among the admirers of Pennsylvania’s new Capitol building at the dedication ceremony on Oct. 4, 1906.

    “This is the handsomest State Capitol I ever saw,” the president said as he entered.

    While it was a magnificent building, the project was way over budget – three times more than the legislature allocated.

    The subsequent investigation resulted in a law that, while well-intended at the time to protect taxpayers from fraud, is no longer relevant today. Instead, it is costing taxpayers money because it requires inefficient construction methods on public projects.

    That $7.7 million Capitol overrun – the equivalent of more than $211 million today – triggered a probe that revealed grafting. Capitol architect Joseph Huston, superintendent of construction James Shumaker, general contractor John Sanderson, state Auditor William Snyder and state Treasurer William Matheus were sentenced to prison.

    With little financial stewardship, each convicted individual had profited tremendously. But this sort of illegal activity wasn’t just happening at the Capitol project – it was the norm on public projects at the time.

    Fast forward to 1913. Public outrage over the scandal remained. There was pressure on public officials to do something. Republican Gov. John Tener, a former congressman and major league baseball player, signed the Separations Act.

    It mandated multiple prime contractors on all public construction projects. The thought was that the more eyes there were on the project, the less likely that there could be collusion for fraud.

    Perhaps 110 years ago, enacting the Separations Act made sense due to the circumstances at the time. Other states imposed similar rules.

    But in this day and age, every cent can be easily tracked. Every other state has done away with their laws because they recognized they were outdated and that providing options in construction delivery methods is the most-efficient way to spend tax dollars on construction.

    Pennsylvania continues to cling to its law. Here’s how that is hurting taxpayers by driving up the price of constructing public buildings.

    Requiring multiple prime contractors – one for HVAC, one for electrical, one for plumbing and one for general trades – means the owner must bid out and manage four separate contracts.

    The primes are not contractually connected and this impedes communication with each other. This lack of contractual relationship also hurts the communication between the architect and the primes.  Each prime contractor and the architect are directly contracted with the project owner – like a school district, municipality or other government entity – and because of that all communication runs through the project owner.

    The lack of a single point of contact from the construction team creates a nightmare of a scenario for the owner. It’s inefficient and cumbersome.

    Most problematic is it eliminates the possibility of collaboration during pre-construction,  which is a more-efficient method of construction. If early collaboration were allowed between the project architect and a single construction manager, projects would proceed more smoothly. Hurdles could be anticipated and resolved in advance. Without collaboration, expertise from the construction team is sparse, if at all, during the design phase.

    Legislation has been proposed several times in recent years that would do away with or amend the Separations Act.

    During a legislative budget hearing in 2017, state Secretary of General Services Curt Topper testified that the Separations Act “requires that we do business less efficiently than we could otherwise do business.”

    He said the old law “effectively sets up a situation where it is much more difficult to design a project, to bid a project and to manage a project. So, I’d love to see us address that problem.”

    Yet the law remains on the books.

    Its inefficiency is well-documented.

    From 2000 to 2010, public education projects could opt out of the Separations Act through the Education Empowerment Act that was enacted during Gov. Tom Ridge’s administration. Seventy school districts applied for the waiver during that period, an indication of the unpopularity of the Separations Act.

    The Allegheny Conference reviewed some of those projects and issued a report concluding that savings of between $8,000 to $2.5 million were achieved on school construction projects that used a single prime contractor instead of multiple primes.

    Kennett Consolidated School District did one project with a single prime and one with multiple primes per the Separations Act. The single prime project was finished two months ahead of schedule and $300,000 under budget. The multiple prime project came in over budget. This is just one the many examples to show that the Separations Act is costly to taxpayers.

    There is a long line of organizations, trade unions and governments that are lobbying for modernization of the Separations Act.

    They include: Pennsylvania Chamber of Business & Industry, National Federation of Independent Businesses PA Chapter, Pennsylvania School Board Association, Pennsylvania Coalition of Public Charter Schools, Pennsylvania Association of School Business Officials, PA Association of Rural and Small Schools, Green Building Alliance, Green Building United, U.S. Green Building Council Central PA, Keystone Contractors Association, Master Builders’ Association of Western Pennsylvania, National Utility Contractors Association Pennsylvania chapter, Association for Responsible and Ethical Procurement, Carpenter Contractor Trust, Construction Legislative Council of Western Pennsylvania, Design-Build Institute of America, General Contractors Association of Pennsylvania, General Building Contractors Association, Cement Masons Local 526, Eastern Atlantic States Regional Council of Carpenters and Laborers’ District Council of Western Pennsylvania.

    Many public owners want to modernize the Separations Act and a few of the more vocal ones include: Philadelphia School District, Pittsburgh Water and Sewer Authority, Peters Township School District, Cumberland Valley School District and Community College of Allegheny County.

    Jon O’Brien is Executive Director of both the Keystone Contractors Association and the General Contractors Association of Pennsylvania. He can be reached at 717-731-6272 and Jon@KeystoneContractors.com.

    Pennsylvania’s Rising College Tuition Isn’t Helped by Outdated Construction Law

    Recently Penn State University announced they approved a tuition increase for incoming students, joining Temple University and University of Pittsburgh. As families continue moving from a pandemic towards normalcy, I am sure the last thing they wanted, or expected, was to see the price tag of education to increase for their students.

    A lot of costs go into the background of the high costs of college. Facilities management and maintenance are one important component. If construction procurement reform had been put in place, to put us in line with the rest of the country, I wonder if this tuition increase could have been avoided. As one of the last few states requiring the use of multiple prime contractors on each public construction project, and enforcing it more strictly than other states, Pennsylvania is stuck with an archaic business practice. Referred to in Pennsylvania as the Separations Act, this requirement was enacted in 1913.

    So, what exactly is the Separations Act? And why should students at state-related universities care?

    In essence, the Separations Act forces the public owner, like the state-related universities, to serve as the general contractor for a project and each of the multiple primes contracts directly to the public owner. Without a single entity directing the project and with plenty of finger-pointing, this is an inefficient contract delivery method fraught with problems such as delays and claims, which are the norms and culprits leading to public projects being over-budget.

    This multiple prime delivery system is virtually nonexistence in the federal, private, residential, and commercial markets – and in fact when the state-related universities spend their own money for construction projects, they very rarely use multiple prime delivery because they want their money spent efficiently. Yet the state-related universities are forced by state law to use the multiple prime delivery system when it is building projects funded by the state.

    On average, a multiple prime delivered project costs 10% more. For that reason it makes sense for these schools to avoid this process when spending money from alums and other contributors. One would think our legislature would have that same sentiment about taxpayers that these colleges have for their donors.  

    It’s time to modernize the Separations Act by affording our public sector a list of proven delivery methods to select from. Construction is not a one-size fits all industry and there is no perfect delivery method. A construction client’s priorities (i.e., cost, quality, time, safety, etc.) vary from project to project and the customer should be allowed the opportunity to select the most appropriate delivery method for a particular project on a case-by-case basis. Senate Bill 823 of 2020 provided those options.

    By no means am I saying that modernizing the Separations Act is the be-all end-all solution to stop tuition inflation, but when Pennsylvania knowingly operates inefficiently while my neighbors see a tuition increase at our fine state-related institutions, I feel inclined to speak up. Now is the ideal time to address inefficiencies in our procurement process on behalf of current and future college students.