January 26, 2009
Industry Watch
Lawmakers should include $3B for airports in stimulus, group says Airport officials are urging Washington lawmakers to designate $3 billion in funding for airport capital improvement projects in the proposed economic stimulus plan. Airports would use funding to prepare for an expected 25% increase in passenger traffic, said John Clark, chairman of the Airports Council International-North America. He added that airport projects could create 126,000 jobs. American City Business Journals/Jacksonville, Fla. (1/23)
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January 13, 2009
Industry Watch
U.S. plans additional $1.3B in Afghanistan
construction
The U.S. has made a long-term commitment to construction in Afghanistan,
with the Army planning to start $1.3 billion in additional projects this
year. It is already building $1.1 billion in military bases and other
facilities. Other projects include airfields, barracks, training areas
and warehouses. The Washington Post (1/13)
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Market Update
sponsored by 
Survey: Economic stimulus could stem job losses More than 65% of nonresidential construction companies will lay off employees this year, according to a recent survey by the Associated General Contractors. Recent data from the federal government shows that since 2006, the construction industry has shed 900,000 jobs. However, more than 85% of companies indicated that they would hire new employees if their state received federal funding for construction projects, according to the survey. Daily Journal of Commerce (Portland, Ore.) (1/12)
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Industry Watch
sponsored by 
Attorneys expect more construction litigation in poor economy Construction attorneys expect the sluggish economy to spur more construction litigation. Lawyers are seeing an increase in mechanic's liens, which are filed by contractors and subcontractors who have not been paid for their work. A recent survey found that construction litigation is among the five areas expected to expand as the economy slows. American City Business Journals/Kansas City (11/14)
- Column: Keep construction documents organized: Documents tell the story of a construction project and often serve as evidence when construction claims are litigated, writes Harvey Kirsh of the Construction and Infrastructure Group at Osler, Hoskin & Harcourt LLP. Contract documents, drawings, inspection reports and minutes of site meetings are among the many documents that comprise the history of a project, and he recommends organizing them in chronological order. The Lawyers Weekly (Canada) (11/21)
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Industry Watch
sponsored by 
Oregon plans to spend $1B on transportation infrastructure A plan to spend $1 billion on new roads, bridges and railways will fix crumbling infrastructure as well as boost Oregon's struggling economy, according to Gov. Ted Kulongoski. He announced the plan, which still needs approval from lawmakers, earlier this week. Officials now estimate that Oregon is $1.3 billion short in maintaining state highways. The Oregonian (Portland) (11/10)
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October 28, 2008
Industry Watch
Measure Q would devote $7B to school repairs in Los Angeles Los Angeles voters will consider a $7 billion measure that would fund repairs to schools in the Los Angeles Unified School District. Observers say Measure Q, the largest local school-bond proposal in state history, would create dependable long-term funding for school modernization and construction. Critics of the bond package point to soaring construction costs in the district as well as the price of the measure. Los Angeles Times (free registration) (10/27)
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October 27, 2008
Industry Watch
Federal funds will help states repair damaged infrastructure States will receive $679 million from the federal government to repair and rebuild roads damaged by Hurricanes Gustav and Ike, floods in the Midwest and storms in California. The funding, which was approved by Congress, will go to 28 states. California will receive $119 million, the largest share of the funding. Engineering News-Record (10/24)
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October 7, 2008
Industry Watch
Judge will order California to pay $250M to build prison medical facilities A federal judge is expected to order the state of California to turn $250 million over to a court-appointed overseer who will supervise construction of the first of eight planned prison medical facilities. U.S. District Judge Thelton Henderson took control of the $1.1 billion prison medical system more than two years ago. Meanwhile, Gov. Arnold Schwarzenegger's administration maintains that it can't fund the construction without approval from state legislators. San Francisco Chronicle (10/6
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October 6, 2008
Industry Watch
Construction sector may continue shedding jobs, AGC economist says Construction employment will continue to decline unless credit markets are quickly revived, Associated General Contractors Chief Economist Ken Simonson said. "State governments from California to Maine have been shut out of the bond market, while developers have had bank credit windows slammed shut on their fingers as they reached for their loans," he writes. All types of construction firms cut jobs in September, he said. Associated Construction Publications (10/3)
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October 3, 2008
Industry Watch
Credit crisis forces governments to scale back construction projects Limited access to credit has forced cities across the U.S. to cut back or postpone construction projects. The current bond market suggests that governments will no longer have access to relatively cheap money to fund projects, according to some analysts. They expect governments to eventually start issuing plain bonds with higher fixed interest rates. Meanwhile, some governments may cut payrolls to balance their budgets. The New York Times (9/30)
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May 30, 2008
Industry Watch
Construction begins on $5.2B Keystone pipeline
Work started this week on a new $5.2 billion oil-sands export pipeline project in Alberta, Canada. The Keystone Pipeline will bring raw oil-sands bitumen to the U.S. Midwest and is the fist significant addition to the North American oil-shipping network since the mid 1990s. Canada.com (CanWest News Service) (5/29)
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May 27, 2008
Redevelopment could resolve Nashville eminent domain conflict
An arduous eminent domain conflict is taking place in Nashville, where the Metropolitan Development and Housing Agency is trying to take a property belonging to the owner of Country International Records to make way for a mixed-use development. An option that would allow the owner to redevelop the building to conform with the development plans, however, could resolve the situation. Nashville City Paper (Tenn.) (5/27)
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April 18, 2008
Virginia roads spending cut by 44% under revised plan
Virginia will see a 44% reduction in statewide spending for roads due to lawmakers' refusal to raise taxes for the roads or increase funding for transportation improvements, according to projections. The state's six-year statewide road and transit plan was slashed by $1.1 billion under a revised plan, due largely to the rising cost of construction materials. According to the Associated General Contractors, federal statistics show that the cost of road and highway construction materials rose 49% from December 2003 through January, while consumer inflation was 14.5%. The Washington Post (4/17)
April 16, 2008
Report: More safety improvements needed for Big Dig tunnels
More repairs are needed to Boston's Big Dig project before all tunnels can be considered safe, according to an engineering firm's safety review. Among the necessary repairs are replacement of a fire suppression system to improve removal of hot and toxic gases in the Sumner Tunnel, according to the report from Wiss, Janney, Elstner Associates. Boston Herald/Associated Press (4/14)
April 15, 2008
Beijing to freeze construction during Olympic Games
Officials in Beijing have announced ambitious plans to halt construction projects, close quarries and slow steel production in and around the city this summer to clear the air before the Olympics and live up to its pledge to stage green games. The plans call for a two-month freeze on construction projects beginning July 20, and coal-burning plants will be required to reduce emissions by 30% during the summer. The New York Times (4/15)
April 11, 2008
Reconstruction of New Mexico interchange a complex undertaking
The reconstruction of the "Big I" intersection of Interstates 25 and 40 in Albuquerque, N.M., has been much more of a complex logistical undertaking than the original construction of the interchange in the 1960s. Costly landscaping projects are involved in the $10 million effort, which started in July 2007. Associated Construction
January 25, 2008
Big Dig contractors agree to $458M settlement
In a legal settlement with Massachusetts, Bechtel/Parsons Brinckerhoff, the consortium that led the Big Dig project in Boston, will pay $407 million and pay for repairs to leaks and design flaws in the project. The consortium will not face criminal charges for a fatal tunnel collapse. Several smaller companies will pay about $51 million, collectively, in the case. The Washington Post (1/24)
January 23, 2008
Chinese construction firms win major American projects
Chinese firms signed more than $5.5 billion worth of construction-related contracts in Europe and the U.S. in 2006, an increase of more than 160% over the previous year, according to a new report. Among the biggest projects is a new $91 million railway station at Yankee Stadium in New York City, awarded to CCA, the American subsidiary of the China State Construction Engineering Corp. CIOB International (U.K.) (1/22)
