Industry News Briefs
December 6, 2007 Headlines
$1 Billion Will Help States Restore Shorelines
New Technologies For Bridge Inspection
Software Interoperability Likely to Increase, Survey Says
Contractor Ethics Rules May Tighten
Rising Energy Concerns Buoy Green Building Industry
Cities With Green Building Programs Have Increased More Than 400% Since 2003
Industry News
$1 Billion Will Help States Restore Shorelines
U.S. Department of the Interior (11/29/07)
Under the Energy Policy Act of 2005, six oil and gas producing states bordering the Gulf of Mexico--Alabama, Alaska, California, Louisiana, Mississippi, and Texas--are eligible to receive a total of $250 million annually through 2010 under the Coastal Impact Assistance Program aimed at restoring and protecting shoreline environments. Thus far, only Louisiana's plan has been approved for funding, containing 168 projects in all that will qualify. "I welcome this opportunity to fund these vital projects for the State of Louisiana and 19 of its coastal parishes," says Secretary of the Interior Dirk Kempthorne. "Restoring and protecting natural coastal resources is fundamental to the Interior Department’s mission." The rest of the states have until July 1 to submit their final plans for approval.
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New Technologies For Bridge Inspection
Roads & Bridges (11/07) Vol. 45, No. 11, P. 66; Medwick, Seth; Kaufman, Paul
The day after Minneapolis' high-profile bridge collapse, the Federal Highway Administration published an advisory instructing bridge owners to inspect all steel-deck truss bridges with fracture-critical members. Subsequent re-inspections were conducted with old, unchanged inspection techniques. New technologies can give bridge operators more precise reports of their structures' conditions. While many agencies have been reluctant to embrace these tools, a sea change in attitude may occur now that new, proven technologies are growing less costly and more available. As well, the public has become more aware of the need to repair the nation's bridges since the Minneapolis collapse, as has the Senate, which ratified the National Infrastructure Improvement Act in August 2007. Departments of transportation and other owners of bridges can now sincerely contemplate adopting new technologies like magnetorestrictive testing, which replaces expert conjecture with hard evidence regarding the condition of hidden details like interior suspender rope wires. Other new and effective methods include strain gauges, ground-penetrating radar, and magnetic particle testing. Inspections are also being improved by changes in bridge design, as contemporary bridges are designed in 3-D and are often embedded with self-monitoring devices like sensors that notify agencies of excessive load levels or deterioration. Inspector-friendly features like box girders with access hatches also facilitate reviews. One method that has been gaining popularity in the United States after being widely used in U.K. oil rig inspections is rope access, which lets engineers examine out-of-the-way areas in a hands-on manner.
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Software Interoperability Likely to Increase, Survey Says
FacilitiesNet (11/26/07)
A new survey of 295 architects, engineers, contractors, and building owners found that adoption of building information modeling (BIM) and integrated project delivery will push the software market to increased interoperability between applications. Forty-one percent of respondents felt that this improved interoperability was a main reason for using BIM. "An overarching goal of BIM is to create a dynamic model of a building that can be used by the entire building team through the building’s lifecycle," says the survey, which was sponsored by International Code Council, the Construction Specifications Institute, the American Institute of Architects, and other organizations. "Build teams estimate that interoperability issues contribute 3.1 percent to a typical project budget." This added cost is due in part to redundancy and delays caused by having to manually re-enter data.
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Contractor Ethics Rules May Tighten
Washington Technology (11/14/07) Vol. 1, No. 1, Hardy, Michael
Requested by the Justice Department and jointly put forth by the Civilian Agency Acquisition Council and the Defense Acquisition Regulations Council, a new proposed rule would oblige contractors to create a code of ethics and establish internal controls for noticing and averting improper contracting conduct. The new proposition adds elements to a previously proposed rule that dealt with the prerequisites for a contractor code of ethics. One new element involves including a contractor's track record of business ethics as pertinent past performance data. To reduce the burden on small businesses, small firms would not have to institute a formal ethics program and an internal control system. Finally, contractors who fail to report breaches of federal criminal law in connection with a federal contract's award or performance, including other companies' violations, would be suspended from government work. Public comments on the suggested rule will be accepted through January 14, 2008.
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Rising Energy Concerns Buoy Green Building Industry
CoStar Group (11/28/07) Burr, Andrew C.
Driving increasing demands for sustainable building are increasing energy costs rather than environmental concerns, say industry experts. "Energy is a pressure point that's causing people to focus on sustainability," says Eric Bowles, vice president and director of research for corporate real estate trade group CoreNet Global. "When companies look at what's busting their budget this year, it's rising energy costs. Essentially, the energy issue is creating the attention." CoreNet recently released the results of a global survey of sustainability perceptions and trends in corporate real estate that showed 79 percent of respondents labeling sustainability a critical short-term business issue and that a similar amount was willing to pay a premium for sustainability. On the flip side, misconceptions about costs associated with green construction remain prevalent, the survey found, with more than half of respondents saying green building adds 5-10 percent to costs. Yet data shows that LEED-based construction only adds 1-5 percent, with some levels of certification attainable at no added cost.
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Cities With Green Building Programs Have Increased More Than 400% Since 2003
American Institute of Architects (11/28/07) Frank, Scott
Between 2003 and 2007, the number of cities boasting green building initiatives surged by 418 percent, from 22 cities to 92 cities, according to a study by the American Institute of Architects (AIA). The study found that green building is encouraged in a variety of ways, from incentives like income tax credit to programs that accelerate the permitting process. In terms of certification, Atlanta possessed the most LEED facilities per capita in the United States in 2006, Chicago contains more LEED registered projects than any other city, and Scottsdale, Ariz., was the first city to require LEED Gold for community buildings. The AIA report also includes suggestions for cities seeking to adopt green building programs, such as hiring a director of sustainability and encouraging collaboration among all professionals in the construction and design sectors. To help drive the implementation of such programs nationwide, AIA is working with the National Association of Counties and the U.S. Conference of Mayors, and has also created a tool kit to help interested cities. "Sustainable design practices have the potential to transform the built environment from an energy intensive past towards a more energy efficient, green future," says Paul Mendelsohn, AIA vice president of government and community relations. "Technological advances now allow for the design of buildings that are efficient, modern, possess great aesthetics and are financially viable. High premiums for green buildings are no longer the case as costs are coming more in line with traditional building practices."
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U.S. Oct. Construction Spending Falls 0.8%
MarketWatch (11/30/07) Schroeder, Robert
In October 2007, spending on U.S. construction projects declined 0.8 percent after having grown in September 2007 by 0.2 percent. Amid a wave of negative housing-related statistics released in late November 2007, spending on private housing projects fell by 2.0 percent in October, a 15.8 percent drop when compared to data from October 2006. The pool of homes for sale has been driven to its highest level in over two decades, due to a combination of properties entering the U.S. housing market and the continued decline in sales of existing homes, according to the National Association of Realtors. However, home builders cut prices at the swiftest pace in 26 years in October 2007, thereby boosting sales of new homes, reports the Commerce Department. Overall, spending on both private construction and commercial construction decreased by 1.4 percent and 0.5 percent, respectively. In contrast, federal construction outlays grew by 8.2 percent in October 2007 and spending on public construction increased by 0.8 percent. Meanwhile, the Commerce Department recently announced that U.S. consumer spending growth halted abruptly in October 2007, as inflation consumed households' slight gains in income.
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ARTBA 2008 Economic Forecast: Modest Real Growth in Highway Construction Market
American Road & Transportation Builders Association (11/27/07)
According to the American Road & Transportation Builders Association’s (ARTBA) recently released forecast, highway and bridge construction will be among the most steady of U.S. construction markets in 2008. In addition, construction work performed on highways and bridges will exhibit modest year-on-year growth, with its value growing from an estimated $75.5 billion in 2007 to just under $78 billion in 2008. The rising cost of construction materials is predicted to continue easing in 2008, enabling investments to support a greater number of projects, says William Buechner of ARTBA. Indeed, material costs have risen only 5 percent in 2007, in contrast to the 10.8 percent increase in 2006 and the 12.5 percent surge in 2005. The federal highway program is expected to be the primary driver of 2008 highway and bridge construction, as funds covered under the SAFETEA-LU highway and transit law move into the pipeline; at least 80 percent of the funding has been allocated for construction work. Federal-aid highway construction in 2008 may also benefit from the annual transportation appropriation bill currently moving through Congress. However, investments in highway and bridge construction from state and local budgets will likely remain the same in 2008 as in 2007.
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Area-Based Models of Highway Growth
Journal of Urban Planning and Development (12/01/07) Vol. 133, No. 4, P. 250; Levinson, David; Chen, Wei
There exist few empirical models to predict highway expansion. This study sought to link highway expansion and construction with concrete factors by evaluating several decades of data from the Minnesota's Twin Cities metropolitan area to identify land use cells (encompassing a .5km buffer area of existing divided and undivided highways) most likely to add infrastructure. The researchers found that new highways routes were most likely to be added close to employment and commercial centers as well as areas adjoining existing corridors. Low and medium population density areas (defined as having 51-100 and 101-300 people per cell, respectively) were more likely to experience highway growth than sparsely populated areas (defined as having up to 50 people per cell). While high density was seen as a negative to growth of divided highways, it correlated with secondary highway construction. The further from downtown areas, the more likely highway expansion would occur, while cells with a higher percentage of urban settlement areas were found to be more likely to have secondary highway growth. The researchers noted that some factors, such as political influence, could not be accounted for in the study.
From Sewage, Added Water for Drinking
New York Times (11/27/07) Archibold, Randal C.
A pilot program in Orange County, California, is experimenting with "indirect potable water reuse," a process by which sewer water is purified to bolster drinking water supplies. On Nov. 30, 2007, the $481 million Groundwater Replenishment System plant will open. The plant takes sewer water from an adjacent sanitation plant and, first, removes solids by running the water through microfilters. Next, the water undergoes reverse osmosis. Finally, the water is purified with ultraviolet light and peroxide to eliminate any remaining carcinogens and pharmaceuticals. Michael R. Markus, the district's general manager, says the final product "is as pure as distilled water." However, though the result surpasses drinking water standards, it will not proceed directly into household taps, as doing so would violate state regulations. Instead, the water will be sent underground, with 50 percent of it working to form a blockade against seawater encroaching on groundwater sources. The other 50 percent will filter into aquifers that provide water to 2.3 million people. In comparison to the 1970s-era plant it is replacing, the new plant will generate much more drinkable water, and at a superior quality. However, the indirect potable water reuse process is in its infancy, and critics contend the process is too untested to be implemented. Others say the system is too costly. If the project is successful, it may serve as a prototype for leaders worldwide struggling with predicted water shortages and persistent drought. Indeed, water managers from around the world have already visited the model plant in California. While about a dozen districts in the United States, and several overseas, recycle treated sewage to replenish potable supplies, the capital of Namibia, Windhoek, one of the driest places in Africa, is believed to be the only one that practices on a large scale direct potable reuse, in which recycled water goes directly into the tap water distribution network.
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Reliability-Based Strengthening and Expansion of Water Distribution Networks
Journal of Water Resources Planning and Management (12/01/07) Vol. 133, No. 6, P. 531; Agrawal, Magan Lal; Gupta, Rajesh; Bhave, Pramod R.
The authors present an iterative approach for fortifying and expanding water distribution networks (WDNs) based on the compromise between cost and reliability for the purpose of acquiring a level-one redundant WDN capable of enduring single pipe failure without partially or fully disrupting consumer services. Node and volume reliability factors are tapped to evaluate reliability, and the assessment of these factors is based on the performance of networks under varying conditions. The iterative improvement of an existing network's reliability is facilitated either through the addition of a parallel pipe of minimum size to one of the existing connections or by enlarging one of the newly added pipes to the next higher size by weighing the biggest ratio of the marginal capacity factor to the marginal cost increase. The methodology boasts simplicity and is applicable to multisource networks with multiple demand patterns, as well as to networks with time-varying demands for their minimum cost strengthening and expansion.
Congestion Funding Eyed
Traffic World (11/26/07) P. 13; Natters, Ari
Congress wants a better look at the "Urban Partnerships" initiative and additional measures of the Department of Transportation's congressional plan in order to figure out whether available federal money was really used to decrease transportation congestion. Included in the most recent transportation appropriation legislation in Congress is an initiative that requests that the comptroller general study the $850 million program. It specifically calls for a study of the procedure employed to choose the program's participating cities and asks for an evaluation of the measures' effectiveness in reducing congestion. Congress asked that the report to the House and Senate appropriation committees be finished by the end of March. The Department of Transportation argues that the Urban Partnerships plan invested in five of the most congested U.S. cities--Miami, Minneapolis, New York, San Francisco, and Seattle. New York City, for instance, got $10.4 million to promote Mayor Michael Bloomberg's proposal to charge automobiles and trucks $8 and $21 per day, respectively, to come into or exit the city beneath 86th Street during peak hours. Meanwhile, Seattle intends to utilize part of its $138.7 million to replace a non-toll bridge with a new tolled bridge. "I think there is a great deal of dissatisfaction with what the Department of Transportation did with the money," says American Highway Users Alliance president and CEO Gregory Cohen.
Major Supermarkets Chillin' for the Environment
EPA News Release (11/27/07)
The EPA and 10 major industry players have launched the voluntary GreenChill Advanced Refrigeration Partnership aimed at promoting green technologies and best practices within the supermarket, refrigeration equipment, and chemical refrigerant industries. The ten founding partners are Whole Foods Market, Food Lion, Giant Eagle, Hannaford Bros., Harris Teeter, Hill PHOENIX, Honeywell International, Kysor//Warren, Publix Super Markets, and DuPont. "As Americans make greener choices, we look for companies that support a greener lifestyle," says Robert J. Meyers, principal deputy assistant administrator of EPA's Office of Air and Radiation. "The GreenChill logo is a clear sign of a supermarket's environmental commitment. It shows that GreenChill members are doing their utmost to save the ozone layer." The EPA estimates that widespread use of advanced refrigeration technologies and methods could reduce refrigerant emissions by a million metric tons of carbon equivalent a year, the same reduction that would be achieved if 800,000 automobiles were taken of the road.
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Warehouse Construction: Steady, Strong
Building Design & Construction (11/07) Haughey, Jim
A report from Property & Portfolio Research sees a steady U.S. warehouse market, with growth in rental rates slightly outpacing inflation at 3.5 percent, and a national vacancy rate just over the typical level 8.5 percent. Factoring inflation, warehouse construction spending is expected to be steady or slightly hire over the next two years, following a dip at the middle of this year. Increasing job site activity growth is expected late in 2007, to last well into next year, as there was a surge in project starts in August and September. Starts are up 22 percent year-over-year for the first nine months of 2007, concentrated in distribution centers near ocean ports and population centers; the six states of California, Florida, Georgia, Illinois, Pennsylvania, and Texas made up 55 percent of starts this year. There is also more space being added in fast-growing Nevada, Utah, and Idaho.
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