Insights

To compete with and meet rigorous market and regulatory requirements, many industrial operators require new purpose-built facilities that precisely match their specific process flows, utility demands, and site conditions. The question is how to balance the competing capital needs of high-return, high-dollar priorities, such as automation, equipment, inventory, or market expansion, against the cost of developing and constructing a modern, high-performing, customized facility.

The One Big Beautiful Bill is now Public Law 119-21, passed on July 4, 2025. The law features several powerful new financial incentives, including the Special Depreciation Allowance for Qualified Production Property (Section 70307). This article is for decision-makers to better understand and leverage the law in planning, designing, and implementing a related CapEx project.

The delivery and contracting of an industrial facility project are complex processes involving many parties performing a wide array of services that support design, engineering, pre-construction, construction, and commissioning solutions. This article discusses construction contract types, the importance of a properly aligned contract, how to choose, and a comparison of the most common types used for high-performance industrial facility projects.

Project delivery methods can either support or raise barriers to capital project success. Selecting the proper project delivery method is vital for optimizing project development and execution strategies for high-performance industrial facilities.