Zack Rippeon Speaks with Construction Dive on Federal Shutdown Risks for Contractors

Adams & Reese construction partner Zack Rippeon was quoted by Construction Dive, examining how the latest government shutdown negotiations affect federal construction contractors. The article, published January 30, 2026, covered a last-minute deal between Democrats and Republicans that preserved funding for key construction-related federal agencies.

Rippeon provided insight on the practical consequences contractors face when government funding hangs in the balance. He explained that even projects with appropriated funds from before the fiscal year could experience payment delays during a shutdown due to staffing furloughs, while projects awaiting new funding would stall entirely.

In the wake of the lengthy shutdown earlier this fiscal year, Rippeon noted that the cycle of shutdown brinkmanship is reshaping how contractors view federal projects. ”Constant political shutdown threats create uncertainty, especially when coupled with the already constrained funding for various government agencies involved in construction projects," he told Construction Dive. "Contractors may see the need and opportunity to price in more risk tolerance for having to finance the work without payment."

Rippeon also noted that this uncertainty can push qualified contractors to increase their bids to account for payment risk, potentially raising project costs or opening the door to less experienced firms.

The full article is available on Construction Dive.