Kier Group PLC (LSE:KIE), Costain Group PLC (LSE:COST) and Balfour Beatty plc (LSE:BBY) received a boost on Tuesday as the UK government announced £92 billion of funding for major road schemes and rail upgrades.
More than 50 road and rail upgrades were given the green light, including widening the A66 Northern Trans-Pennine road and restoration of the Portishead to Bristol city centre rail line that has been closed since the 1980s.
The A66 contract will be completed by Balfour Beatty, Kier and Keltbray.
The Simister Island junction upgrade near Greater Manchester was also approved for funding, the Department for Transport said an expected £138 million contract for Costain.
Other road schemes in the north and Midlands were confirmed as funded, including the M54 to M6 link road in Staffordshire, the A38 Derby junctions and the A46 Newark Bypass in Nottinghamshire.
Rail project funding also included a Midlands Rail Hub in Birmingham, creating new rail links for more than 50 locations; three new stations (Wellington, Cullompton and Haxby) in the South West and Yorkshire; and upgrades for the East Coast main line.
Transport Secretary Heidi Alexander said: "Transport is the backbone of our economy, which is why we are giving them the record funding boost they need, putting taxpayers’ money where it matters most and making everyday journeys easier."
She said over 42,000 new jobs and 39,000 new homes are estimated to be supported thanks to the funding committed for the major road schemes, with journey times to be "slashed".
Of the £92.8 billion, Chancellor Rachel Reeves has already announced £10.2 billion for rail enhancements, improving connectivity and unlocking growth in key areas of the UK, and £24 billion for roads.
Costain shares rose 1%, Kier's 0.5% and Balfour's 0.3% in early trading on Tuesday.