Industry News Briefs
August 28, 2008 Headlines
Economy Gets Boost From Government Building Boom
Green Goes Mainstream In New U.S. Workplaces
Month-old BIM Addendum Wins National Endorsements
Industry News
Economy Gets Boost From Government Building Boom
USA Today (08/19/08) Cauchon, Dennis
A boom in government spending on construction has picked up some of the economic slack caused by the collapse of the housing market. Governments at all levels in the United States are on track to spend a record total of $300 billion in 2008 on roads, bridges, schools, and other projects. The figure represents a 7 percent increase from 2007, a year that saw a 12.4 percent increase from the previous year, the biggest yearly increase since 1993, when the Census Bureau started tracking construction spending. Government projects now generate more spending than residential construction. In 2005, residential construction generated a record $481 billion, more than twice what was spent by governments. The current government spending is drawing accolades from economists. "Tax rebates peter out. Building a new bridge helps the economy long after the work is done," says University of Oregon economist Mark Thoma. "Construction projects create a lot of employment. That's what lags in modern recessions." But a slowdown may be in the cards. Government borrowing dropped 9 percent to $116 billion during the first half of 2008 compared to the previous year, according to the Bond Buyer; governments fund construction through debt, taxes, and federal money.
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Green Goes Mainstream In New U.S. Workplaces
Investor's Business Daily (08/21/08) Howell, Donna
Nationwide, more building owners are adding energy-efficient, green features for both financial and societal return on investment. Increasingly affordable green expertise and incentives such as faster city approval boost appeal. Ashley Katz, spokeswoman for the U.S. Green Building Council, states, "We've definitely seen large growth in green buildings. For commercial projects, we generally say you can build a green building for not a penny more than a non-green." That is in such markets as Boston and San Francisco, contends Brooks Rainwater of the American Institute of Architects. He adds, "But if you talk to someone in Salt Lake City, they're still seeing further cost in green design." However, those who do have to spend 1 percent to 2 percent more will likely recoup the additional outlay in the first couple of years, Katz assures. That is because green buildings typically save between 30 percent and 50 percent on energy bills. Los Angeles, Houston and the nation's capital are just three of the hot spots for green buildings. Symantec received high marks earlier in the year for its office campus in Culver City, Calif. Luigi Sciabarrasi, vice president of real estate at Symantec, remarks, "We believe the paybacks will be long term, with less attrition and sick days when you build healthier buildings." The Symantec facility boasts everything from a reflective membrane roof to water-saving, dual-flush toilets to recycled carpet tiles.
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Month-old BIM Addendum Wins National Endorsements
Philadelphia Business Journal (08/15/08) Kostelni, Natalie
In the first month of its official existence, the Building Information Modeling (BIM) Addendum, the first and only industry standard that addresses legal and other challenges that arise in the use of 3D computer modeling in building design and construction, has won the endorsement of at least 16 leading U.S. construction associations. Usually around 2 percent of every construction project's cost is consumed by fixing construction mistakes between engineers, architects, or subcontractors, and Turner Construction program manager Jan Reinhardt says the BIM Addendum reduces that percentage to "close to zero percent." Seyfarth Shaw partner Leah Rochwarg, who aided Duane Morris construction attorney Richard Lowe in the crafting of the addendum, says the document allocates risks and responsibilities among all project participants on a fairer and more equitable level. By signing the document, all parties agree to collaboratively correct potential clashes very early in the construction process. In formulating the addendum, Lowe faced the challenge of determining how risk would be spread and resolved. A model is conceived by many people and can be manipulated by other parties, so the document had to clarify that any participant who changes or modifies the model is accountable for that modification.
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Traffic to Improve Under New Transportation Reform Plan, U.S. Secretary of Transportation Mary Peters Says
U.S. Department of Transportation (08/19/08)
Traffic congestion will be reduced and busy highway corridors expanded in St. Louis, Houston, Charlotte, and other cities through a plan to reform the U.S. surface transportation program, according to U.S. Secretary of Transportation Mary E. Peters. "Our proposal will make it significantly easier to widen I-70, improve I-64, finance local transit projects and cut commuting times," she said during a visit to St. Louis, noting that the plan relies on a new Metropolitan Mobility Program for urban areas with over 500,000 residents. Local officials would receive a direct payment of federal funds via the program, as well as an unparalleled degree of flexibility to invest the funding in their most urgent transportation initiatives. "Under our approach, communities will no longer have to slice and dice every federal dollar to qualify for niche programs that do little to improve their communities or commutes," Peters said. "Instead, projects that make sense for commuters get funded, while projects designed only to help politicians won't." Peters said that to qualify for rewards, projects will need to demonstrate positive results for commuters and solid investments for taxpayers. A renewed federal concentration on Internet highways, particularly along freight corridors, is called for by the reform plan, which also offers communities more flexibility to use variable pricing on regional roads while enhancing traffic flow on local corridors. Peters reported that this would ease the production of revenue for other transit and highway efforts.
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USDA Awards $677 Million in Electric Loans
U.S. Department of Agriculture (08/22/08)
The U.S. Department of Agriculture (USDA) has selected 20 rural utilities to receive a total of nearly $677 million in loans for new electric lines and system improvements in 19 states. The financing will be used to build and repair over 4,200 miles of distribution and transmission lines. "America's electric co-ops provide a vital service to rural areas, electrifying communities, serving farms, businesses and homeowners," says Agriculture Secretary Ed Schafer. "Electric co-ops do it with a remarkable track record of reliability. The loans we're announcing today will help make system improvements that will benefit consumers across the nation." The loans will be made available under USDA's Rural Development Utilities Program, which has awarded about $28 billion in electric loans since 2001.
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Western Gulf of Mexico Lease Sale 207 Attracts $487,297,676 in High Bids
U.S. Department of the Interior (08/20/08)
The Western Gulf of Mexico Oil and Gas Lease Sale 207 attracted nearly $500 million in high bids, reports the U.S. Department of the Interior. In all, 53 companies submitted 423 bids on 319 tracts comprising more than 1.8 million acres. "In the midst of the national discussion about energy production, the activity at today’s sale signals that the offshore oil and gas industry is serious about developing our nation’s resources," says Interior Secretary Dirk Kempthorne. About 17 percent of the tracts that received bids are in ultra-deep water.
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Downtowns Across the U.S. See Streetcars in Their Future
New York Times (08/14/08) Driehaus, Bob
Interest in downtown streetcar transit systems is growing among U.S. cities. Cincinnati, for example, is planning to finance a $132 million system that would link its riverfront stadiums, downtown business district, and uptown neighborhoods in a six- to eight-mile circuit using $30 million in private investment and existing tax revenue to cover the cost. "Today, young, educated workers move to cities with a sense of place," says Cincinnati city manager Milton Dohoney. "And if businesses see us laying rail down on a street, they'll know that's a permanent route that will have people passing by seven days a week." Contemporary streetcars cost about $3 million apiece, are driven by electricity, carry as many as 130 passengers and can make shorter stops than buses. The Community Streetcar Coalition reports that such initiatives are being considered as instruments for easing traffic congestion, encouraging economic development and attracting young professionals and baby-boom empty nesters back from the suburbs. Streetcar systems "serve to coalesce a neighborhood," says Jim Graebner with the American Public Transportation Association's streetcar and vintage trolley committee. Proponents cite Portland, Ore.'s modern streetcar system as an engine for economic growth, with system operator Portland Streetcar boasting that more than 10,000 residential units have been constructed and $3.5 billion has been invested in property within two blocks of the line since the plans for the system were announced. At least 40 cities are considering streetcar plans. More than a dozen have existing lines, including New Orleans, which is restoring its hurricane-wrecked network. Denver, Houston, Salt Lake City, and Charlotte, N.C., have either introduced or are planning to introduce streetcars.
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Construction Owners Need to Know Their Liabilities
Cincinnati Business Courier (08/18/08) Cleves Jr., Joseph
Construction owners who do not spot and adhere to various implied legal commitments can incur liability. An implied covenant of good faith establishes that neither the owner nor the contractor will do something to harm the right of the other to attain the benefits of the contract. Owners may violate this covenant when they deliberately do something that upsets or postpones a contractor. Even before the contract begins, it is the owner's obligation to provide data that will not deceive prospective bidders. Owners must also furnish the contractor with precise plans and specifications. The contractor is not legally responsible for results of any faults in plans and specifications that it follows during construction, or for defective finished work. The contractor can recover for extra work, add-ons, or setbacks brought about by poor documentation. Though the design professional is probably responsible for design defects, the owner can still take action. Risk of loss can be transferred through disclaimers or contractual language to make the contractor the guarantor of the sufficiency of the plans and specifications. A "verification" clause mandating the contractor to confirm the design for precision and wholeness can also reduce the risk of design defects, as can peer reviews of the design documents. Owners are obligated to review a contractor's drawings in a timely manner, as waiting to approve submittals can delay the project and the owner can be held liable to the contractor for damages.
Specialist Firms Fill Void Left by Government Inspections
Triangle Business Journal (08/15/08) Mauriello, Maria J.
Industry professionals estimate that about eight to 10 Triangle area firms currently offer special inspections of buildings under construction, and in North Carolina such inspections are mandatory on buildings that exceed three stories or 45 feet; underground buildings; buildings that present a significant danger to human life; crucial facilities such as hospitals, power plants, and fire stations; retaining walls higher than five feet; piers, piles, and special foundations; sprayed fire-resistant materials; smoke control and smoke exhaust systems; and other special cases. A coordinator is in charge of overseeing the inspection process, and must report updates to city and county inspectors, while the inspections are paid for by the building owner. Raleigh, N.C.-based structural engineering firm Fluhrer Reed estimates that about 100 to 200 buildings in the Triangle need special inspections, and the firm has formed a partnership with inspection and testing services provider ECS Carolinas to guarantee that all angles of the inspection process are covered, says ECS' Aric Geda. The inspection process starts with an assessment of a project's blueprints and inspection statement, and a cost proposal is readied following the determination of the project's scope. Inspections commence with the beginning of construction, and during site inspections Fluhrer Reed's coordinator and ECS' special inspectors meet with the contractor and check all work they are responsible to review. Items that fail to comply with approved plans and specifications and the applicable provisions of the International Building Code are disclosed to the contractor and the inspection coordinator, and then the special inspector puts together a report listing the nature and precise locations of all discrepancies, the names and titles of all individuals to be apprised of these discrepancies, and the necessary corrective action; the report is posted at the job site. Upon a project's completion, Fluhrer Reed submits a final, signed report to the government building department that verifies the conclusion of the inspection and testing, and itemizes any non-conforming, unaddressed discrepancies or items.
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Capitol Hill Eclipse for Solar Power?
CNet (08/18/08) Cooper, Charles
Congress is considering a renewal of the investment tax credit (ITC), which would give homeowners who move to solar power a credit equal to 30 percent of what they spend on implementing the technology, up to $2,000. The ITC would also give businesses who want to move to solar power the same 30 percent credit, though they would not be subject to the $2,000 cap. Although the U.S. House of Representatives has passed a bill that would extend the tax credit past Dec. 31, when it had been set to expire, the effort to extend the credit has gone nowhere in the Senate. And with the election fast approaching, the outlook for passing the credit is looking increasingly bleak. According to a source tied to the solar industry, many Republicans do not want to vote for the extension "because they don’t want to give the Democratic Congress any credit" before the election. If Congress fails to pass the extension, it could result in the delay or cancellation of important commercial solar projects in the U.S. because there is a risk that these projects cannot be completed by Dec. 31, though residential projects would probably be unaffected, solar industry experts say. In addition, failure to renew the ITC would hurt the growth of the solar industry in the U.S. and send thousands of jobs overseas to more favorable markets, said Lyndon Rive, the CEO of the California-based residential solar installer SolarCity. However, Rive said he is convinced that Congress is aware of the importance of the tax credit and will eventually vote to renew it.
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Using Bridges as Scales Promising, Researchers Say
Birmingham News (AL) (08/12/08) P. 2B; Wolfson, Hannah
Researchers at several University of Alabama campuses are testing a new system that allows bridges in the state to serve as truck scales and catch overweight trucks. This makes Alabama the first state to test the Slovenian-designed Bridge Weigh-in-Motion sensor and computer equipment, which is already in use in Europe. The sets of 24 palm-sized sensors used by the system can be installed with much greater ease and less expense than traditional truck weigh stations while helping cut down on wear and tear from heavy trucks. "The beauty of this equipment we have is that it's a sorter," said University of Alabama at Birmingham Prof. Bill Hitchcock, the lead investigator on the research; "It sorts the traffic so you only stop the suspects, because there's hundreds of thousands of trucks and you can't stop everybody because it backs up traffic." The group has tested the system on two bridges along Interstate 59 and Interstate 459 so far, with a third bridge to be added in September along with live data transmission and enforcement with the Department of Public Safety.
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Sick Building Syndrome: Healing Health Facilities
BusinessWeek (08/13/08) Minutillo, Josephine
The National Institute for Occupational Safety and Health recently issued a study indicating that the healthcare field accounts for the highest rates of work-related asthma, pushing indoor air quality (IAQ) in hospitals to the forefront. In addition to airborne infections, hospitals' IAQ can be hindered by mold, carbon monoxide and volatile organic compounds that seep out of paint, varnishes, carpet, flooring, insulation adhesives and particleboard. Hospitals increasingly are implementing linoleum flooring, cotton insulation, undyed wool carpet and other natural materials to improve IAQ. Ventilation also is an important consideration, and Dell Children's Medical Center of Central Texas in Austin allows clean, oxygenated air into the facility through a half-dozen courtyards with different kinds of flora. The air in these courtyards is kept clean through a ban on lawn maintenance, smoking and loading docks, and only a few of the courtyards are accessible. Additionally, the hospital uses different air handlers for different areas of the hospital instead of one rooftop air-handling unit. Some experts believe hospitals' windows should be operable, but others worry they would prevent hospitals from controlling the spread of infection. Displacement ventilation, meanwhile, is being considered in hospitals with single-bed rooms; these systems introduce cooler air at the floor level, allowing fresh air to reach the occupied level and heated, contaminated air to leave through exhausts in the ceiling.
Why Complex Systems Do Better Without Us
New Scientist (08/06/08) Vol. 199, No. 2668, P. 28; Buchanan, Mark
Research by Swiss Federal Institute of Technology physicist Dirk Helbing suggests humans' desire to force complex systems into a regular, predictable model is misguided, and a much better strategy is to cede a certain degree of control and let systems work out solutions on their own. "You have to learn to use the system's own self-organizing tendencies to your advantage," he argues. Helbing and Stefan Lammer at Germany's Technical University of Dresden have considered whether traffic lights could be engineered to reduce congestion by giving the devices the means to adapt their behavior rather than have engineers shape traffic into patterns that seem favorable. The researchers have found that traffic lights, when provided with some simple operating rules and left alone to organize their own solution, can do a better job. Helbing and Lammer have crafted a mathematical model that assumes a fluid-like movement for traffic and describes what happens at intersections. The researchers make the lights at each intersection responsive to increasing traffic pressure via sensors. Lights that only adapt to conditions locally might give rise to problems further away, and to address this the researchers have engineered a scheme in which neighboring lights share their information so that what occurs around one light can affect how others respond, preventing the formation of long traffic jams. Helbing and Lammer have shown through simulation that this setup should substantially reduce overall travel times and keep no one waiting at a light too long, even though the lights' behavior runs counter to accepted human concepts of efficiency.
Universities Detail Declines in Federal R&D Funding for Science and Engineering Fields
National Science Foundation (08/21/08) Mixon, Bobbie
Federal funding of academic science and engineering research and development (R&D) rose 1.1 percent in current dollars to $30.4 billion in fiscal year (FY) 2007, according to the National Science Foundation (NSF). However, the NSF's latest Survey of Research and Development Expenditures at Universities and Colleges found that R&D funding fell for the second straight year after adjusting for inflation. In inflation-adjusted dollars, R&D funding decreased 1.6 percent from FY 2006, following a decline of 0.2 percent in FY 2005. The federal government still accounted for 62 percent of R&D funding in FY 2007. Overall, R&D expenditures totaled $49.4 billion in FY 2007, as nonfederal funding grew 5 percent. Industry funding increased 11.2 percent to $2.7 billion; state and local government funding grew 6.1 percent to $3.1 billion; academic institutions' contributions rose 6.6 percent to $9.7 billion; and funding from nonprofit organizations, nongovernmental entities, and other sources increased 10 percent to $3.5 billion.
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Skilled Trades Seek Workers
Wall Street Journal (08/19/08) P. B1; Troianovski, Anton
Manufacturers, unions, and construction contractors are employing new recruitment strategies to attract younger talent. There are plenty of vacancies in the skilled labor sector, but few takers due to nagging misconceptions about blue-collar trade. Many people still view welding and pipe-fitting as being low-level positions that offer little money, status, or the chance for advancement. To change this perception, unions and employers are turning to the Web, the military, and cable channel personality Mike Rowe to call attention to the benefits of a career in the skilled trades. Rowe recently appeared with construction equipment maker Terex at a trade show and has signed on to help the company recruit young workers. Rowe has also addressed employees of industrial supplies distributor W.W. Grainger to talk up the advantages of the business. The International Brotherhood of Electrical Workers and the National Electrical Contractors Association, meanwhile, have teamed up on an online campaign to get high school graduates to take an apprenticeship instead of attending college.
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