December 30, 2008

News for contractors and the construction industry

§                                 Column: Obama seen as kindred spirit for rail proponents
Columnist Michael Dresser says Rep. John Mica, R-Fla., is excited about President-elect Barack Obama and his administration because of their common goal of boosting high-speed rail. "We think the United States shouldn't become a Third World country when it comes to high-speed service," Mica said. The Sun (Baltimore) (free registration) (12/29)

§                                 Fontainebleau hotel opens after $1B makeover
Miami's iconic Fontainebleau hotel reopened last month after a $1 billion makeover. Some of the additions include three upscale restaurants and a beachfront spa. "There are probably only a handful of hotels as synonymous as this is with their location. As The Plaza is to New York, as the Ritz is to Paris, the Fontainebleau is to Miami Beach," said Howard C. Karawan, chief operating officer of Fontainebleau Resorts. Asbury Park Press (Neptune-Asbury Park, N.J.)/The Associated Press (12/28)

§                                 Renewable power projects face limited capacity in U.S., Europe
Renewable power projects in Europe could stall without grid upgrades because they will place too much stress on existing systems. Some U.S. organizations also are warning about the effect of limited capacity on America's grid. "We are already operating the system closer to the edge than in the past," said Rick Sergel, president of the North American Electric Reliability Corp. "We simply do not have the transmission capacity available to properly integrate new renewable resources." MIT Technology Review (1/1)

§                                 Earthquake recovery construction may boost China's economy
China has already transformed the location of this year's devastating earthquake into a construction site. The government is expected to spend 25% of a $580 billion economic recovery package on quake reconstruction, and it hopes the effort will help boost the country's ailing economy. The stimulus package includes roads, railways and 4.5 million homes. The New York Times/Reuters (12/29)

§                                 Other News

·                                 AGC's Sandherr tells Obama team transportation infrastructure should get priority
Associated Construction Publications (12/29)

·                                 Toronto's Metrolinx faces lack of governance
The Toronto Star (12/29)

§                                 Report: Construction spending to decline sharply in New York in 2009
The New York area showed resilience in construction spending in 2008, but economic weakness is expected to send construction starts falling 19% next year, according to a new McGraw-Hill Construction report. The report predicted that nonresidential construction starts in 2009 will decline 21% to $11.6 billion. Meanwhile, non-building construction will fall 28% to $6.9 billion. Crain's New York Business (12/29)

§                                 Recession crimps Vegas casinos and construction
October gambling revenues in Clark County, Nev., plummeted 24.3% from last year, while area construction plunged 92% in October compared to the year before. The downturn has stalled development on several construction projects, including a $4.8 billion resort that is now on hold until 2010. MGM Mirage sold Treasure Island for $775 million to pump cash into finishing its $9.1 billion CityCenter, the largest private construction project in the U.S. TIME (12/29)

§                                 Vacuum excavators take on new challenges
Construction workers are discovering new uses for vacuum excavators, including locating buried utility lines with less risk of accidental damage. The machines, designed for underground cleaning, employ water or air pressure to displace spoil. Vacuum excavators were originally used to clean septic tanks and car wash pits, among other tasks. Associated Construction Publications (12/29)

§                                 Innovative Iowa bridge uses advanced concrete
The Jakway Park Bridge in Iowa's Buchanan County is the first highway bridge in North America built with a new generation of Ultra-High Performance Concrete pi-girders. UHPC consists of fine sand, cement and silica fume for a denser concrete than conventional concrete. Developed in France in the 1990s, UHPC has rarely been used on U.S. bridges. The Jakway Park Bridge was recently nominated for the Iowa Quality Initiative Structures Award. Oelwein Daily Register (Iowa) (12/29)

§                                 Stimulus lobbying well under way
The new administration expects the stimulus package to cost between $675 billion and $775 billion, and the prospect of all that money has interest groups lining up to ask for a piece. Vice President-elect Joe Biden has promised to keep a close eye on what gets spent, saying: "We'll spend what we need to turn this economy around and no more." Yet groups representing everyone from shoe importers to the aviation industry are hoping to use the stimulus package as a means to get concessions they've been working toward for years. USA TODAY (12/29)

§                                 Other News

·                                 International Monetary Fund endorses Obama stimulus plan
The Wall Street Journal (12/30)

§                                 Top 5 in political comedy
The Daily Beast laughed its way through the election season and gathers its favorite videos here. Chris Rock takes a jab at Bill Clinton, the Daily Show skewers dumb voters and, of course, "Saturday Night Live" takes on Sarah Palin. The Daily Beast (12/28)

© 1999-2008 SmartBrief, Inc.® Legal Information

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."

© 1999-2008 SmartBrief, Inc.® Legal Information

December 19, 2008

News for contractors and the construction industry

§                                 Local governments turn to re-zoning to revive construction
Some local governments are pushing through re-zoning proposals as part of an effort to revive plans for new construction. Officials in Fresno, Calif., for example, have approved a $150 million mixed-use development on a prime 39-acre plot. Meanwhile, leaders in St. Francis, Wis., are expected to approve construction of a university that could revive plans for local commercial development. Officials note that construction will help keep workers employed while the economy is weak. The Wall Street Journal (subscription required) (12/17)

§                                 Nevada city approves large MXD project
Two 330-foot towers may be built in Henderson City, Nev., according to the City Council. The towers are part of a mixed-use, 40-acre development that will include 850,000 square feet of commercial space and 1,700 homes. The project will be built in six phases over a period of up to 10 years. Las Vegas Review-Journal (12/18)

§                                 Developer aims to build two skyscrapers after razing hotel
Los Angeles developer Michael Rosenfeld plans to build two new skyscrapers where the historic Century Plaza hotel now stands. The two buildings would reach 600 feet and include 293 condominiums, office and retail space and a 240-room luxury hotel. Los Angeles Mayor Antonio Villaraigosa supports the $2 billion project, and a spokesman for the mayor's office said the project could "transform an aging hotel into an iconic destination and a state-of-the-art, mixed-use development in the heart of our Westside." Los Angeles Times (free registration) (12/18)

§                                 Tysons Corner embraces "smart growth" plan
Planners and developers have a vision to transform the Tysons Corner, Va., sprawl of shopping malls, office towers and car dealers into a shining example of "smart growth" by 2050. Located 13 miles from downtown Washington, D.C., Tysons Corner plans to build high-rise apartments, new transit stations and urban parks to complement the country's 10th-largest mall. "Tysons Corner can become a textbook example of how to turn an absolute planning catastrophe into a textbook example of ecologically sensible, sustainable architecture," said architect Doug Carter. The New York Times (12/16)

§                                 Structural problems cited at Indiana hotel
Officials in Indiana's Allen County in May ordered work stopped on an 80-room hotel. The Homewood Suites by Hilton hotel has has sunk up to five inches on one end. A local design engineer has produced a list of 14 design and structural deficiencies associated with the building. High on the list was the contractor's failure to compensate for soil that was unstable. The News-Sentinel (Fort Wayne, Ind.) (12/18)

§                                 Massachusetts prosecutors drop charges against Big Dig company
Massachusetts prosecutors have dropped manslaughter charges against a company for the collapse of a section of the Big Dig tunnel in Boston that killed a passenger in a car. However, the state will require Powers Fasteners to pay $16 million in damages to the state and city. The New York epoxy vendor must also stop selling the fast-drying epoxy adhesive implicated in the collapse, and recall all of the product now in the field. The Boston Globe (12/18)

§                                 Other News

·                                 Volkswagen picks Walbridge to build Tennessee plant
XYZ Computing/Knoxvillebiz.com (12/18)

§                                 Real estate industry shaken by Madoff scandal
Developers, wealthy families and large and small commercial brokers were all affected by a Ponzi scheme authorities say was run by financier Bernard Madoff. Observers noted Madoff managed his funds by providing few details to his clients. Some developers had pledged their investments with Madoff as collateral, and the charges raise questions about whether banks will continue to loan funds to them. The New York Times (free registration) (12/18)

§                                 Contractors propose improved safety measures at Las Vegas meeting
Las Vegas contractors attending a public meeting on Tuesday voiced support for several proposals they say will make construction sites safer. The Associated General Contractors' proposals focus on improving training and cutting drug and alcohol abuse by workers. The contractors hope the proposals might counter stricter policies that could slow the pace of construction in the area. Las Vegas Sun (12/17)

§                                 Versatile knuckleboom cranes grow in popularity
Knuckleboom cranes are versatile enough to help hang decorations in a casino, handle materials at a construction site or launch a boat from a waterfront house. The cranes can be mounted to a truck and travel with materials directly to a job site. They are popular in Europe, where they are also used in vehicle salvage and towing. Associated Construction Publications (12/17)

§                                 Some lawmakers hope to pass recovery package by Jan. 20
Advisers for President-elect Barack Obama are working to finish an economic recovery plan by Christmas and hope Democratic congressional staff members can draft legislation very quickly. "The goal for completing action on this important legislation should be as close to Jan. 20 as possible," stated an e-mail message from Senate Majority Leader Harry Reid's office to senior Senate Democratic staff members. The recovery package, which is expected to include infrastructure projects, could total just under $1 trillion. The New York Times (free registration) (12/18)

§                                 Getting the Job Done Safely: Worker Orientation DVD
This DVD outlines the fundamental construction safety practices for new workers and provides refresher training for veteran workers. Easy to deliver training in less than 15 minutes! 1996. To purchase copies, visit www.agc.org/bookstore, item #435D.

§                                 AGC offers construction Tool Box Safety Talks DVD
This DVD contains more than two hours of video (30 titles) of the most used Tool Box Safety Talks for construction jobs. You'll be able to select videos by title with just one click. Each video topic is an average of five minutes in length. Topics include: Chemical Safety, Compressed Gas Safety, Construction Equipment Maintenance, Crane Signals, Cut-off Saw, Safety, Environmental Hazards, Eye & Face Protection and much more. To purchase copies, visit www.agc.org/bookstore, item #0550D.

© 1999-2008 SmartBrief, Inc.® Legal Information

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@....

© 1999-2008 SmartBrief, Inc.® Legal Information

Upcoming Events

1/14 (3 days) - Palm Beach, FL
CAGC Convention

1/19 (begins) - Greenville, SC
Commercial Drawings Course

1/29 - Charlotte, NC
Scaffold Competent Person

2/5 (begins) - Clemmons, NC
SuperVISION Academy (1-2)

What Has National AGC Done for You Lately?>>
National AGC CEO Steve Sandherr recently met with the Obama transition team to discuss infrastructure projects to be considered in a stimulus plan. AGC also submitted a white paper that discussed all available infrastructure components including water and wastewater projects, schools, airports, public building projects, waterway and port projects, and surface transportation projects.

Bogus E-mail Selling OSHA Posters Sent to Members
Please note that a fraudulent email sent to members around the nation offering 'discounts' to AGC members on OSHA posters is not from AGC—although it looks to be. OSHA offers posters FREE of charge; order yours now.

Construction Economy Update: News from Your AGC Chief Economist>>
The PPI for inputs to construction industries fell 3.2% for the month but was 4.9% higher than in November 2007. The segment with the largest decline for the month was highway and street construction.

CAGC Feature of the Week: Member Columns>>
In this environment, year-end meetings with sureties, bankers and other financial partners are more critical than ever before.

AGC Feature of the Week: Infrastructure Investments Effort>>
AGC of America has launched a new national effort designed to show broad support for needed new infrastructure investments. The effort is designed to ensure that new infrastructure investments help create and preserve construction jobs and serve as a foundation for future economic growth.

North Carolina Government Relations-- News Impacting Your Business>>
• Transportation Funding
• Ft. Bragg Expansion Groundbreaking
• Girder Collapse Investigation
• Building Code Update
• Zoo Committee Nixes Construction Funds But Looks at Hotel Possibilities

South Carolina Government Relations-- News Impacting Your Business>>
• State Revenues Continue to Fall
• Who Do You Know
• Immigration Training
• Budget and Control Board Approved Funding

This Just In! North Carolina Construction Industry Headlines>>

This Just In! South Carolina Construction Industry Headlines>>

Announcements For Members By Members>>

Check The Latest Projects For Bid>>
Log in to see 401 currently bidding projects.

Having problems opening any of the above links? Click here.
Email shough@... • www.cagc.org

© 2008 Carolinas AGC. All rights reserved.
1100 Euclid Avenue, Charlotte, NC 28203 • PO Box 30277, Charlotte, NC 28230-0277
Phone 704.372.1450 • Fax 704.332.5032

December 16, 2008

News for contractors and the construction industry

§                                 Interest groups eager for piece of infrastructure plan
Many interest groups hope to land portions of President-elect Barack Obama's stimulus package that will fund infrastructure projects. The packages could be 10 time larger than a $60.8 billion stimulus plan that died in the Senate less than three months ago, observers say. It may also include tax cuts, funds for energy conservation and development of renewable resources. The Boston Globe (12/15) , Forbes (12/15)

§                                 Government seeks contractors to build high-speed rail
The government plans to build a $30 billion to $40 billion high-speed passenger rail line between Washington and New York and is seeking contractors for the project. It is also considering funding other high-speed rail lines in other parts of the country, including Florida and California. The New York-Washington rail would carry travelers between the two cities in no more than two hours. The Washington Times (12/16)

§                                 Column: Has the time come to boost mass transit funding? The growing emphasis on energy security and reducing emissions has created more interest in mass transit, writes Lisa Caruso in the National Journal. More than 10 transportation and infrastructure experts discuss whether those trends justify more federal spending on mass transit and whether public transit supporters will effectively push for more funding in the next surface transportation bill. National Journal (12/15)

§                                 Soaring oil prices will affect cost of Tennessee highway project
The soaring cost of petroleum products has sent the cost of a Tennessee highway project up nearly $800,000. Global fuel prices have increased fuel costs for contracts and have sent the cost of asphalt soaring, planners say. WZTV (Nashville)/WZTV (12/15)

§                                 New Jersey bill would require stricter oversight of some projects
A bill passed by the New Jersey Assembly gives the state the ability to more closely track development projects that receive more than $50 million in federal funds. Under the bill, developers must submit audited annual financial statements and post performance bonds worth 110% of the public funds dedicated to the project, among other things. The goal of the bill is to ensure that state funds are invested and spent wisely, lawmakers say. However, some observers note that the version of the bill that passed is more "business friendly" than a prior version. The Star-Ledger (Newark, N.J.) (12/15)

§                                 Other News

·                                 Hawaii to pump $1 billion into construction projects
The Honolulu Advertiser (12/15)

·                                 California PUC to issue report on proposed $250M desalination plant
Reuters (12/15)

§                                 Cost of construction materials drops 3.2% in November
The cost of construction materials declined 3.2% in November, a greater decline than the 2.2% drop posted for the entire U.S. economy. Smaller declines are expected in December and possibly in January. The cost of diesel fell 20%, asphalt fell 15% and structural steel declined 11%. Costs are still above last year's prices. Reed/ACP Construction Data (12/15)

§                                 Financial crises, past and present
Past financial crises had very different effects on the real economy. Although the lessons of the past don't give much cause for optimism, they do provide hints on how companies should prepare this time around. The McKinsey Quarterly (free registration for SmartBrief readers) (12/2008)

§                                 Group urges swift action on infrastructure package
Associated General Contractors of America Chief Economist Ken Simonson said lawmakers should take swift action on an economic stimulus package to offset job losses in the construction industry. "Many of those (job) losses have been in heavy and civil engineering construction -- highways and other public works," Simonson said. "Those workers could quickly be re-employed if the states had enough money to award contracts for projects they have ready to go." ConstrucTech (free registration) (12/16)

§                                 More contractors value technology that allows for interoperability
Interoperability between disparate applications is becoming more important to contractors as their budgets continue to tighten. agcXML, which was funded by Associated General Contractors of America, has the potential to improve interoperability and involves developing a set of XML standards for the exchange of construction business process and document information. "This should enable anyone in the industry to use whatever application they consider to be suitable for their organization or for their particular tasks and still be able to exchange info with business partners," noted Michael Tardiff, agcXML project manager. ConstrucTech (free registration) (12/15)

§                                 Other News

·                                 Technology aids equipment tracking
Associated Construction Publications (12/15)

§                                 Pelosi says stimulus package work under way
House Speaker Nancy Pelosi, D-Calif., says legislators are working on crafting an economic stimulus package in the neighborhood of $600 billion. Of that, two-thirds would be used for infrastructure projects, while the remaining $200 billion would come in the form of tax cuts. St. Louis Post-Dispatch/The Associated Press (12/15)

§                                 Over 400 construction resources -- yours at a click
Over 400 titles are at your fingertips: books, DVDs, videos, contract documents, recordings, downloads on essential topics like equipment safety, risk management, supervisory training, environmental management, labor relations -- everything a successful construction contractor could need. Continuously updated with the current available titles! Visit www.agc.org/bookstore and see for yourself.

§                                 AGC offers construction Tool Box Safety Talks DVD
This DVD contains more than two hours of video (30 titles) of the most used Tool Box Safety Talks for construction jobs. You'll be able to select videos by title with just one click. Each video topic is an average of five minutes in length. Topics include: Chemical Safety, Compressed Gas Safety, Construction Equipment Maintenance, Crane Signals, Cut-off Saw, Safety, Environmental Hazards, Eye & Face Protection and much more. To purchase copies, visit www.agc.org/bookstore, item #0550D.

© 1999-2008 SmartBrief, Inc.® Legal Information

December 15, 2008

News for contractors and the construction industry

§                                 Report: Reconstruction in Iraq, Afghanistan fails to achieve goals
A new government report has found that reconstruction plans in Afghanistan and Pakistan lacked a cohesive strategy and clear lines of communication among U.S. departments. The report, which is still in draft form, found the programs had not met the goals of rebuilding and modernizing infrastructure and described the reconstruction effort in Iraq as a failure. The Washington Post (12/15) , The New York Times (12/13)

§                                 California fund moves forward with $2.1B mixed-use project
Investment fund Stockbridge Real Estate Funds will proceed with plans to demolish a race track and build a a three-phase, $2.1 billion mixed-use redevelopment in Inglewood, Calif. Executives hope the economy will have recovered by the time the development is completed. Stockbridge has enough capital to begin construction in August and is confident that it can acquire more funding at a later date, executives say. Los Angeles Business Journal (free registration) (12/15)

§                                 Weak market could delay completion of WTC until 2013
The recession could force the Port Authority of New York and New Jersey and private developer Larry Silverstein to delay construction of the World Trade Center until 2013. "We definitely have challenges on the commercial side of the project about timing and raising capital. Those are the things we are talking to Silverstein about," said Port Authority Chairman Anthony Coscia. Meanwhile, the economic recession has made it difficult to secure financing for office projects. Nevertheless, Silverstein has indicated that he will build the project despite obstacles in the market. The Wall Street Journal (subscription required) (12/15)

§                                 Maryland County reaches agreement for natural gas power plant
Maryland's Charles County has reached an agreement with Competitive Power Venture to build a $500 million natural gas power plant considered a vital part of energy planning for the Washington, D.C., region. The agreement calls for CPV to purchase polluted reclaimed water to cool a facility that will power about 600,000 homes. Construction on the project is expected to start next summer, and CPV is looking for money to finance the 14-mile pipeline for the water. The Washington Post (12/14)

§                                 Other News

·                                 Rutgers cuts size of stadium expansion
The Star-Ledger (Newark, N.J.) (12/12)

·                                 Northern Kentucky works on $70M infrastructure dream list
The Cincinnati Enquirer (12/14)

§                                 Florida, Utah have greatest need for infrastructure funding, group says
More than a quarter of the $64.3 billion in infrastructure projects that could be funded through an economic stimulus package are located in Florida and Utah, according to a list compiled by the American Association of State Highway and Transportation Officials. Meanwhile, declining revenue has forced several states to delay or cancel infrastructure projects. In addition, observers say it is unlikely that lawmakers will approve the full $64.3 billion in funding. Engineering News-Record (12/11)

§                                 AGC calls for stimulus to include road, bridge and other infrastructure work:  The Knoxville News-Sentinel (Tenn.) (free registration) (12/15)

§                                 Construction spending dips in Minnesota, mirroring national trends
Spending on construction projects continues to decline in Minnesota, with one industry report showing a 36% drop in the dollar value of nonresidential construction through the end of October from year-earlier levels. The trend is pervasive throughout the U.S., and even governments and nonprofits are struggling to get bonds approved to finance construction projects. Experts say they do not expect a recovery in the construction market any time soon. Star Tribune (Minneapolis-St. Paul) (12/14)

§                                 Oil firms hold off on exploration projects
Oil companies are holding off on signing new contracts for steel and labor for drilling rigs as they wait for the costs of such projects to come down. "If you're looking at a go/no-go decision now, and steel prices are going down, a typical deep-water project gets a quarter of its cost from steel," noted IHS Energy analyst Candida Scott. "If in six months you're going to see that cost come down, it gives pause to the amount of money you're about to spend." Houston Chronicle (12/13)