June 30, 2009

News for contractors and the construction industry

§  Construction manager of collapsed garage also built faulty bridge

§  Construction of an Atlanta parking garage that collapsed on Monday was managed by a firm that also completed a bridge that collapsed at the city's botanical garden. Hardin Construction confirmed that it managed the entire Centergy parking garage project and said that Metromont Corp. designed and erected the garage. The parking deck had not been inspected since its original inspections in 2001 and 2002, according to city officials. The Atlanta Journal-Constitution (free registration) (6/29) , Google/The Associated Press (6/29) , ClipSyndicate/Associated Press (6/29)

§  Labor Secretary sends more OSHA inspectors to Texas
Secretary of Labor Hilda Solis on Monday said the Texas office of the Occupational Safety and Health Administration will receive more inspectors in July. She noted that the state has more construction fatalities than any other state. Doug McMurry, executive vice president of the AGC in San Antonio, noted that contractors in the city take safety seriously. AGC has already put in place a safety program in connection with OSHA, he added. San Antonio Express-News (free registration) (6/30)

§  Structure collapses raise concerns about China's construction sector
A nearly completed 13-story apartment building in Shanghai collapsed over the weekend. It is unclear what caused the accident, which is under investigation. Meanwhile, in northeast China, part of a bridge caved in Monday. Both incidents raise concerns about quality control in China's construction industry. The Wall Street Journal/Blogs (6/29) , Engineering News-Record/The Associated Press (6/29)

§  Other News

·         Disney to add three new areas to Hong Kong theme park for $452 million
Bloomberg (6/30)

§  Bank of America Tower lands $1.3B loan
The developer of the Bank of America Tower in New York will receive a $1.3 billion loan from five banks. The Durst Organization said the loan, which took nine months to complete, will allow it to finish construction on the skyscraper. Work began in 2004 but has been postponed several times. Officials in New York say the loan could signal a recovery for real estate financing. Real Estate Channel (Orlando, Fla.) (6/29)

§  MGM Mirage gains breathing space, Station Casinos still struggles
MGM Mirage last week said it can now pay any amount owed under its CityCenter completion guarantees. In addition, language from the company's audits that question its ability to operate as a going concern have been removed. MGM Mirage also said it can now fulfill its financial commitments through 2010. Meanwhile, the future of Station Casinos, which operates more than a dozen Nevada casino, remains unclear because it has not been making interest payments on its debt. GlobeSt.com (6/29)

§  Index indicates construction industry recovery stabilized
A recent index from the American Institute of Architects suggests the construction industry's recovery has stalled. The May Architecture Billings Index was 42.9. That's up from 42.8 in April. Although the results indicate that the decline in demand for architectural services had stabilized, the index would have to rise to 50 or above to indicate an increase in demand. Building Design (6/29)

§  Column: Spike in credit rates could return
Long-term credit rates have declined since their sharp jump from early May to early June, writes Jim Haughey. However, he notes that there are two issues to watch: a jump in rates as recovery begins and an additional jump to help pay for some government borrowing. He suggests there are two paths that could be taken -- with one being rather devastating. Reed/ACP Construction Data (6/29)

§  Tubes will use Earth's temperatures to heat, cool Spaceport America
Earth Tubes, also known as ground-coupled heat exchangers, could cut air-conditioning cooling costs by up to 70% at Spaceport America in New Mexico. The tubes use the Earth's subterranean temperature to warm or cool air for use in residences or commercial buildings. Ground broke recently on Spaceport America, which will become the commercial spaceport for Virgin Galactic. The 110,000 square-foot hangar facility is designed to comply with LEED standards. Construction Week (6/29)

§  Other News

·         Parks Canada restores massive 227-year-old stone fort
Google/The Canadian Press (6/29)

§  Federal intervention in business matters concerns some experts
New compensation and family leave laws have some business owners concerned about the breadth of federal intervention in their business. A panel of experts recently discussed these issues at the annual meeting of the Employers Association of New Jersey. One members noted that the U.S. is now experiencing unprecedented levels of federal intervention in business matters. NJBIZ (New Jersey) (6/29)

§  Other News

·         Southwest solar power efforts fast-tracked by feds
The Washington Post/The Associated Press (6/29)

·         House bill would give Guam project workers wages 250% above norm
The Washington Post (6/30)

§  Family Business Institute offers CEO Performance Roundtables
Under an exclusive agreement with the Family Business Institute (FBI), experts in family-owned and closely held businesses, AGC member company executives have the opportunity to participate in professionally facilitated CEO Performance Roundtables. The CEO Performance Roundtable is an industry-specific gathering of seven to 10 CEOs where, with the assistance of professional facilitators, non-competing leaders can openly review their companies and share information in a focused effort to build breakthrough success for themselves, their families, their employees and their customers.

To learn how to join in the FBI Performance Roundtable Program, contact FBI's Program Administrator Jack Ford at jack.ford@... or at 877-326-2493, ext. 231.

§  ConsensusDOCS provides contractor rights to financing information
ConsensusDOCS gives contractors the right to project financing information throughout the life of the project. Other standard contracts restrict the contractor's access to project financing information after work begins and include conditions that are subject to interpretation and can lead to expensive and unnecessary disputes. ConsensusDOCS provides a reasonable approach to obtain critical project financing information and is endorsed by national owner groups including COAA, CURT and NASFA. For free excerpted samples, visit www.ConsensusDOCS.org.

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