That’s part of the reason. The other is that rural roads are mostly county or state funded (often through large Federal appropriations), and draw in a larger tax base and in-house professional engineering.

That’s why you can drive around rust belt areas of Upstate NY on nice roads - NYC Finance bonuses pay for that.

City roads are usually maintained by the city, which has much more limited access to capital. Because of that, in-house work is usually limited to mill and pave work and there’s not enough throughput for an appropriate staff of engineers. Big projects are usually task focus (safety, multi-modal) and are funded by Federal grants and use outside design and build contractors.

For the shared utility work, there is some coordination. My wife worked for a municipal water utility and ran the metering and infrastructure division. They received notice of paving or other jobs and prioritized proactive maintenance to happen while the road was under construction. The city would fine entities for digging up the street for non-emergency purposes for 6-12 months after the project completed. It helps, but broken mains or transformers necessitate the street cut.