December 29, 2008

News for contractors and the construction industry

§                                 Projects stall in New York as developers struggle to secure financing
The financial crisis has forced developers to cancel or postpone projects worth $5 billion in New York City, according to research by the nonprofit Urban Land Institute. Tighter lending markets have also affected development in other parts of the U.S. The growth rate for construction and land development loans declined to 0.08% through September. That's down from 11.3% for 2007 and 25.7% in 2006, according to the Federal Deposit Insurance Corp. The New York Times (free registration) (12/26)

§                                 Now completed, new section of Interstate continues to stir debate
An 18-mile stretch of Interstate 99 that opened last month in Pennsylvania took four years longer to finish and cost $631 million, about twice the estimated cost. Critics also note that the bill funding the project allowed it to bypass environmental oversight. Supporters say the section of Interstate will stimulate the Central Pennsylvania economy. The New York Times (12/27)

§                                 Contractors, unions make construction safety top priority in Las Vegas
Hearings on the safety of construction sites, agency reviews of construction sites, and a day-long work stoppage contributed to reducing the number of construction-related deaths in Las Vegas. A dozen workers died during the final months of the construction boom in Las Vegas. However, in the past six months, no fatalities have been reported. "From the management on down, there's greater emphasis placed on safety now," said Steve Holloway, vice president of the local chapter of Associated General Contractors. "Safety is so much about culture, about environment. If management from top down is concerned, then employees are going to be concerned about safety." Las Vegas Sun (12/28)

§                                 Commercial construction slows in Kentucky, Ohio
Commercial developers in Cincinnati and Northern Kentucky expect a slow year in 2009 and note that many speculative projects without financing are now on hold. "Unless there is significant pre-leasing that has taken place, I don't see any new construction going forward in 2009," said Scott Yards, vice president of the CB Richard Ellis office properties group. At least $750 million in projects has been placed on hold. The Cincinnati Enquirer (12/28)

§                                 Border fence construction requires blasting, drilling
Subcontractor Sukut Construction is building a $11.2 million section of the Department of Homeland Security fence that borders the U.S. and Mexico. The job will require the company to drill and blast rock in the foothills. It will also widen 2.5 miles of dirt road, making it easier for heavy equipment to pass through. AZoBuild.com (12/29)

§                                 Other News

·                                 $1.4 billion light-rail line debuts in Phoenix
Seattle Post-Intelligencer/The Associated Press (12/27) CNNMoney.com/Reuters (12/27)

·                                 Everglades restoration project faces obstacle
The Palm Beach Post (Fla.) (12/28)

·                                 Chinese government: Many schools structurally unsound
The Boston Globe (12/27)

§                                 Credit flow puts crimp in future pipeline projects
Although profits of pipeline companies have been stronger than many others in the energy industry, tight credit now threatens new pipeline projects. The Wall Street Journal (subscription required) (12/29)

§                                 Economy may not show growth until late 2009, economists say
The U.S. economy may show modest growth in the last quarter of 2009, some economists say. However, they note that unemployment will continue to climb, housing prices will continue to fall and consumer confidence will remain low throughout much of next year. Meanwhile, lawmakers are expected to pass a multi-billion economic stimulus package, and the Obama administration is expected to push for an increase in infrastructure spending. "If they do shovel-ready infrastructure, that can be spent pretty quickly," noted Brookings Institute fellow Alice Rivlin. "But it would be ill-advised to do too much of that." The Christian Science Monitor (12/29)

§                                 Traffic flows through China's new underground tunnel
Traffic began moving through China's new four-lane tunnel under the Yangtze River on Sunday. The nearly $300-million tunnel cuts travel time between business areas in the Hubei Province to seven minutes from 30 minutes. The tunnel can withstand flooding, having been built with a 300-year flood plain in mind. About 50,000 vehicles can travel through it every day. China Daily (Beijing) (12/28)

§                                 S.C. uses advanced concrete to speed highway ramp construction
Construction crews in South Carolina are using a new type of advanced concrete to build an off ramp on Interstate 25. Air pressure and a pump are used to spread the Shock-crete, which officials say dries much faster than traditional concrete. "You pump it and then blow it on," said Shane Garrett, supervisor for Wurster Engineering and Construction, the subcontractor building the wall. The Post and Courier (Charleston, S.C.) (free registration) (12/26)

Top five news stories selected by AGC SmartBrief readers in the past week.

§                                 Construction supervisors may face charges in NYC firefighter deaths (The New York Times (free registration))

§                                 States halt infrastructure projects amid credit crisis, funding woes (The New York Times)

§                                 Developers seek rescue package as commercial mortgages coming due (The Wall Street Journal)

§                                 Construction stalls on several federal building projects (Federal Times)

§                                 N.Y. prosecutors charge supervisors, subcontractor with manslaughter (The New York Times)

·                                 Results based on number of times each story was clicked by readers.

§                                 Obama stimulus could reach $775 billion
A senior adviser to President-elect Barack Obama said the administration wants to implement an immediate tax cut for middle-class families once Obama takes office. Obama also wants to enact permanent tax cuts as part of an economic-stimulus package, according to David Axelrod. Axelrod suggested the stimulus package could cost between $675 billion and $775 billion. The New York Times (12/28) , The Washington Post (12/29)

§                                 Construction Planning & Scheduling Manual (2nd Ed.)
This edition was written to offer guidance to contractors in the effective use of modern project management techniques. The primary objective of the new book is to provide an educational tool for teaching the concepts of construction planning and scheduling. The content of the book is written for all project personnel, from the working foreman to the project executive. 341 pages. 2004. To purchase copies, visit www.agc.org/bookstore, item #3502.

§                                 Risk Management Insurance & Bonding
This 162-page handbook introduces you to risk management methodologies, contractual risk transfer and alternative means of financing risk, experience rating, contract surety, and much more. 2000. To purchase copies, visit www.agc.org/bookstore, keyword "Risk."

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