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There are an estimated 11 million illegal immigrants §currently residing in the United States. The §construction industry is heavily dependent on §immigrant labor, legal and illegal, for production. §Immigration reform legislation will undoubtedly §reduce the supply of illegal immigrants by §encouraging enforcement of current laws and by §enacting new legislation with harsher penalties for §illegal immigration. Depending on the form of the §legislation, the cost of construction could increase §dramatically.§There is wide speculation among industry executives §regarding the impact of immigration reform §legislation on the construction industry. In §response to industry concern, the aim of this §research is to analyze the impact of immigration and §immigration reform legislation on construction §project costs. This analysis should help §construction executives and project managers better §anticipate the impact of labor reforms on project §costs. It is also useful for legislators, social §policy authors and researchers, demographers, and §others interested in immigration reform policy.