December 17, 2008

News for contractors and the construction industry

§                                 Construction industry braces for slowdown in 2009
The construction industry will face a serious slowdown in 2009, as developers struggle to secure loans for new projects, industry observers say. Up to 400,000 workers will lose their jobs or remain out of work next year, as the pipeline for new projects quickly dries up. The Architecture Billings Index hit another record low in November for the second consecutive month. The ABI fell to 34.7, a slip of 1.5 points from October. The Washington Post (12/17) , Reuters (12/17)

§                                 California officials may freeze or halt thousands of projects
California's cash crisis may force officials to delay or halt infrastructure projects throughout the state. They are meeting today to freeze financing on road, levee, school and housing construction projects, as well as park improvements, environmental restoration and prison repair projects. All the projects rely on funds from routine bonds that the state cannot currently sell. The move could cut 200,000 jobs and cost private companies $12.5 billion. Los Angeles Times (free registration) (12/17)

§                                 Md. funds infrastructure to encourage private development
Maryland will spend millions in state funds to help develop five locations aimed at encouraging military families to settle in high-density communities with easy access to mass transit. In Westport, where a waterfront development is planned, state funds will subsidize improvements to freeway ramps and repair aging bridges, among other things. Officials note the federal base realignment could create 60,000 jobs in the state but the increased population could strain existing transportation systems. The Sun (Baltimore) (free registration) (12/16)

§                                 Immigration fence 170 miles away from finish line
Five hundred miles of the border fence that is to extend 670 miles between Mexico and the U.S. have been completed. Congress has set aside $2.7 billion for the fence since 2006. But there's no estimate how much the entire system -- the physical fence and the technology -- will cost to build. The Salt Lake Tribune (Utah)/The Associated Press (12/16)

§                                 Other News

·                                 AGC: $1B in nonresidential construction spending would add $2.4B to Ala.'s economy
The Birmingham News (Ala.) (12/16)

·                                 Texas move puts school projects in a bind
Houston Chronicle/The Associated Press (12/16)

§                                 Office, retail construction decline in Tampa Bay
November office construction in the Tampa Bay area declined 32% to $190 million from year-ago levels. "It's going to be a tough year in 2009, particularly for housing and commercial construction," McGraw-Hill senior economist Jennifer Coskren said. Meanwhile, retail construction fell 29% to $229 million. St. Petersburg Times (Fla.) (12/17)

§                                 Saudi official predicts OPEC cut will be 2 million barrels a day
Saudi Oil Minister Ali Naimi said Tuesday that the oil production cuts anticipated from OPEC will likely be set at 2 million barrels a day. Facing a shortfall of revenue in their countries, OPEC leaders will try to get member nations to agree to a significant enough cutback to shock the market without driving their economies down further. Houston Chronicle/The Associated Press (12/16)

§                                 Column: Building designs come closer to achieving energy efficiency
More industry leaders in design and construction are calling for energy-efficient building designs, writes Stephen E. Smith, president of The American Institute of Architects, Michigan. According to Smith, designs that allow for reuse and source local materials are among the emerging trends in the industry. "Armed with equal measures of knowledge and good, old-fashioned American ingenuity, we can create built environments that cost less to build and maintain, have lower true life cycle costs, and nurture us better -- individually and as a society," writes Smith. The Flint Journal (Mich.) (12/15)

§                                 First private greenfield airport will open in May
The first private, commercial greenfield airport in the U.S. is expected to open in May in Missouri's Taney County. The city of Branson, Mo., has signed a 30-year "pay-for-performance" agreement with the $140 million airport, and county officials have accepted ownership of the 922-acre property. The airport touts its "innovative business model," which includes affinity programs offered to travelers and developing unconventional revenue streams. Centre for Asia Pacific Aviation (12/16)

§                                 Other News

·                                 Louisville arena may include green features
The Courier-Journal (Louisville, Ky.) (12/16)

·                                 Get a handle on estimating for concrete projects
Reed/ACP Construction Data/RS Means (12/16)

§                                 Column: Recovery plan would advance GSA sustainability goals
The U.S. General Services Administration has welcomed President-elect Barack Obama's economic recovery plan because it includes an effort to make public buildings sustainable and more energy-efficient, writes Jim Williams, acting GSA administrator. "Within GSA, an investment in upgrading federal buildings means new funds to address the backlog of repair and alteration projects, especially in our 480 buildings that are eligible for the National Register of Historic Places," he writes. Williams also notes that many of the buildings were built during President Franklin D. Roosevelt's administration. NewsLI.com (12/16)

§                                 Transit group supports green recovery package
A new group of transit experts supports building more bike and walking paths as well as the repair and maintenance of existing roads as part of an economic stimulus package. Transportation for America officials called the list of bridge and construction projects supported by state highway officials "more of the same," and they note that they believe a "green" recovery package could create thousands of jobs. The Hill (12/16)

§                                 Keep Safe -- use AGC
AGC of America has more than 70 resources that will help you keep your company safe and compliant. With DVDs on avoiding back injuries, books on proper techniques for working with cranes, backhoes, personal protective gear, and others, and downloadable papers on accident prevention, hazard communication and powered industrial truck operation -- to name just a few -- AGC works hard to keep construction contractors safe, compliant and profitable. Check it out for yourself! www.agc.org/bookstore, keyword "Safety."

§                                 ConsensusDOCS offers contractor tools for tough financial times
The ConsensusDOCS standard contract 290, Guidelines for Obtaining Owner Financial Information, and the related Financial Questionnaire 290.1, provide an easy and direct way for contractors to quickly determine the financial viability of projects. ConsensusDOCS is the only catalog of standard contract documents that provide such a project tool, which are crucial in turbulent economic times. For more information, please visit www.agc.org/bookstore or contact Carrie Ciliberto at 703-837-5367 or cilibertoc@....

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