The Daily Dig
ConstructConnect's Project Stress Index closed March 2026 at 104.6, up 4.2% from February. The PSI tracks delayed bid dates, on-hold projects, and abandonments in preconstruction, giving the industry an early read on where project activity is tightening or falling apart before work ever breaks ground.
The monthly increase was driven almost entirely by a 22.8% spike in project abandonments, with private sector developments bearing the brunt of that movement. Abandonment levels had been relatively low at the start of the year, so the March jump reflects a correction off that baseline rather than a sustained deterioration. Bid date delays and on-hold activity moved in the opposite direction during the same period, falling 1.2% and 9.9% respectively.
ConstructConnect identifies the ongoing conflict in Iran as a contributing pressure point. Closed shipping lanes have pushed up the cost of oil and other key energy products, potentially driving some owners and developers toward abandonment. Despite the monthly uptick, the broader trend remains positive. The overall PSI is down 3.5% compared to March 2025, with all three components sitting below year-ago levels. Bid date delays fell 7.8% year-over-year, while on-hold activity and abandonments each dropped 1.5%.
Snapshot:
Index: ConstructConnect Project Stress Index (PSI)
March 2026 PSI Reading: 104.6
Month-Over-Month Change: +4.2%
Primary Driver: Project abandonments, up 22.8% month-over-month
Sector Most Affected: Private sector developments
Bid Date Delays (MoM): -1.2%
On-Hold Activity (MoM): -9.9%
Year-Over-Year PSI Change: -3.5% vs. March 2025
Delayed Bid Date Component: 94.5 (down 7.8% YoY)
On-Hold Component: 91.2 (down 1.5% YoY)
Abandoned Component: 128.0 (down 1.5% YoY)
Contributing Factor: Iran conflict driving shipping lane disruptions and elevated energy costs
Data Source: ConstructConnect
Report Author: Devin Bell, Associate Economist
Report Date: April 8, 2026
TheJobWalk Thoughts
The private sector concentration of March abandonments is the most actionable detail in this report. Private developers do not have the appropriations backstop that public sector work carries. When energy costs rise and project economics shift, private owners recalculate faster and cut sooner. GCs and subs carrying pipelines weighted toward private commercial or industrial work should be watching how this trend develops over the next few reporting periods before committing estimating and pursuit resources to projects that may not hold.
The energy cost pressure flagged here runs deeper than abandonment numbers alone. Trades with significant material or equipment exposure tied to fuel and shipping costs are already feeling margin compression on active work. On live pursuits, that is a conversation worth having with owners now, before numbers get locked and escalation becomes a dispute rather than a line item.
