It is cold planing - or milling - of the asphalt surface. This is done for a number of reasons including the following:
-Removing ruts or bumps or irregularities in a roadway before resurfacing.
-Lowering a road surface that is to be resurfaced or treated so that it fits the profile of adjacent roads.
-Removing existing asphalt that is found to be unacceptable.
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What picture that is displayed on a construction sign depends on what type of construction sign. The classic one is a simple text "Under Construction" or if it's road work it might say "Road work" or "Road work ahead". When it also has a picture it tends to be a man with a shovel digging.
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