Industry News Briefs

June 25, 2009 Headlines

Stimulus Deadlines Snarl States’ Bidding Processes
Will Energy Bill Create Federal Building Code?
U.S. Chooses Four Utilities to Revive Nuclear Industry



Industry News

Stimulus Deadlines Snarl States’ Bidding Processes
Denver Post (06/21/09) Moffeit, Miles

Federal rules are complicating some states' efforts to spend stimulus money on infrastructure efforts by causing them to speed up their award processes so they can come in under stimulus deadlines. One example is a repaving project on U.S. 24 and U.S. 285 near Buena Vista, Colo., which increased nearly 50 percent in cost after low bidder Asphalt Paving Co. was awarded the project. The cost savings from Asphalt Paving's low-price quote was used by state highway engineers to pay the company to pave an additional four miles without putting it out to bid—leading critics to charge that it is not in line with the spirit of competitive bidding. State Department of Transportation officials had been seeking to put as much work as possible up for competitive bid in recent years in an effort to drive down costs, but this and other projects show how this sort of extended management process can clash with the federal stimulus rules requiring fast job creation. If state officials had sought competitive bids for extending the U.S. 24 project and two other projects that were also extended, it could have missed the stimulus law's deadlines. As this issue has cropped up around the country, the federal Government Accountability Office has been keeping tabs on it. "It's an issue we're concerned about," says John Needham, the federal agency's procurement chief.
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Will Energy Bill Create Federal Building Code?
Washington Post (06/07/09)

The U.S. House will soon consider a more than 900-page energy bill proposed by Reps. Henry Waxman (D-Calif.) and Edward Markey (D-Mass.) that aims to establish a market-based program to lower greenhouse gas emissions. The idea behind the bill is to reduce the costs of curtailing global warming by encouraging the easiest reductions in greenhouse gases first, but opponents of the bill say it will federalize local building codes. Under the legislation, new buildings must be 30 percent more energy efficient by 2012 and 50 percent more energy efficient by 2016. The percentage continues to rise over the years. However, organizations that create model building codes for states and local governments would be tasked with creating a national code, otherwise one would be created by the U.S. Department of Energy. The national code or another with the same efficiency targets must be implemented by the states. States failing to comply could see a loss in federal funding and carbon allowances and have their codes automatically overwritten by the federal government. Opponents question why the federal government must push forward with changes in building codes with regard to energy efficiency, rather than allow the market to influence such changes.
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U.S. Chooses Four Utilities to Revive Nuclear Industry
Wall Street Journal (06/16/09) P. A1; Smith, Rebecca

UniStar Nuclear Energy, NRG Energy Inc., Scana Corp., and Southern Co. are expected to share $18.5 billion in federal financing to build the next generation of nuclear reactors. The loan guarantees to be awarded by the Energy Department will enable the companies to start building the reactors as early as 2011, with the plants likely to come online by 2015 or 2016. The government has yet to formally announce its selections. The expected launch of the next generation of nuclear reactors has major implications for the economy and the environment. Department of Energy Secretary Stephen Chu has made nuclear power an agency priority, noting that expansion of its use could reduce emissions of carbon dioxide. The first round of building would add about seven new reactors to the U.S.'s existing fleet of 104 at a likely cost of more than $40 billion. The reactors likely to be built in the U.S. are similar in design to ones built elsewhere, such as this nuclear plant in Olkiluoto, Finland. Meanwhile, the government's choice of these four utilities could upend the hierarchy of the electric power industry. The first companies that can build new nuclear reactors will have an advantage in delivering electricity with low carbon emissions, possibly giving them a major financial advantage if Congress passes legislation that caps emissions of carbon dioxide. Exelon Corp. and Entergy Corp., which have bought up nuclear plants in recent years and now run a quarter of the nation's nuclear reactors, are not on the list. "We can't build without loan guarantees," says Craig Nesbit, an Exelon spokesman. Entergy's nuclear spokesman, Mike Bowling, says the company may sit out the first round. "We don't want to be left behind, but we think this first wave will pave the way for others," he says. A nuclear revival could provide an opportunity to retool the nation's manufacturing sector. The new reactors will require thousands of specialized parts and a skilled labor pool to make them. "We're going to bootstrap the U.S. nuclear industry," says Steve Winn, head of NRG's nuclear development company.

U.S. Transportation Secretary LaHood Announces Guidelines for Receiving Economic Recovery Funds for High-Speed Rail
U.S. Department of Transportation (06/17/09)

The U.S. Department of Transportation has published guidelines for states and regions to apply for federal funds for high-speed rail initiatives as part of the American Recovery and Reinvestment Act. "The time has finally come for the United States to get serious about building a national network of high-speed rail corridors we can all be proud of," says Secretary Ray LaHood. "High-speed rail can reduce traffic congestion and link up with light rail, subways and buses to make travel more convenient and our communities more livable." Funding will come from an $8 billion competitive grant program and a continuing $1 billion annual investment proposed in the President Obama's budget.
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U.S. Has Only Spent 1 Percent of Transportation Stimulus
Reuters (06/17/09) Lambert, Lisa

The U.S. Department of Transportation (DOT) reports that only about 1 percent of the $15 billion transportation stimulus money has been spent so far, but the industry says this is not an indication of a slowdown. Associated General Contractors of America spokesman Brian Turmail says, "The federal funds don't go out until, literally, the states hand in the receipts for the project at the time it's done, or at least an identified phase of the project is done. It's a better measure of projects completed, or phases of projects completed ... than of work under way currently." Nearly all of the $5 billion for airports is obligated now, although not all the projects have been completed. Meanwhile, President Obama has promised to speed up the flow of money from the stimulus to state governments, although making this happen will depend largely on the states. "Every state Department of Transportation has gotten the message to streamline wherever possible," says Tony Dorsey, spokesman for the American Association of State Highway and Transportation Officials. "We have to be prudent, we have to be wise, but we have to be urgent."
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Agriculture Secretary Vilsack Announces $123 Million for Rural Water Projects in 24 States
U.S. Department of Agriculture (06/17/09)

The U.S. Department of Agriculture has announced the selection of more than $123 million in water and environmental projects to be funded immediately through the American Recovery and Reinvestment Act. The projects will help provide potable water and improved wastewater treatment systems for rural towns and communities in 24 states. "The water and wastewater projects announced today support the Obama administration's goal of rebuilding and revitalizing our country's rural infrastructure and putting people to work by doing the work that Americans want done," says Agriculture Secretary Tom Vilsack. "These Recovery Act investments will provide reliable drinking water and sanitary waste disposal while creating and saving jobs in rural America."
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DOT Secretary Ray LaHood, HUD Secretary Shaun Donovan and EPA Administrator Lisa Jackson Announce Interagency Partnership for Sustainable Communities
U.S. Department of Transportation (06/16/09)

The U.S. Department of Transportation (DOT), Department of Housing and Urban Development (HUD), and Environmental Protection Agency (EPA) have announced an interagency Partnership for Sustainable Communities to help improve access to affordable housing, more transportation options, and lower transportation costs while protecting the environment in communities nationwide. DOT Secretary Ray LaHood, HUD Secretary Shaun Donovan, and EPA Administrator Lisa P. Jackson outlined six "livability principles" to guide their agencies' transportation, environmental protection, and housing investments. The six principles are: provide more transportation choices; promote equitable, affordable housing; enhance economic competitiveness; support existing communities; coordinate policies and leverage investment; and value communities and neighborhoods. "Creating livable communities will result in improved quality of life for all Americans and create a more efficient and more accessible transportation network that serves the needs of individual communities," said LaHood. "Fostering the concept of livability in transportation projects and programs will help America's neighborhoods become safer, healthier and more vibrant."
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Ray LaHood: A 'Transformational' Time for the U.S. Transit System
U.S. News & World Report (06/12/09) Ruggeri, Amanda

In an interview, U.S. Transportation Secretary Ray LaHood discusses the "transformational" period he sees for the country's transit system amid the new stimulus spending and forthcoming transportation bill. LaHood, who has praised the "livable community" experience of Portland, Ore., says he feels it can be replicated elsewhere, either in entire cities or in neighborhoods thereof. "Chicago is so spread out and so big, but you could connect neighborhoods, perhaps with light rail," he says. "And they've been connected by 'rails to trails.'" After decades of building the interstate highway system, says LaHood, the department is following the lead of a "transformational president" as people reconsider "where they want to live, how they want to live, and how they want to be able to get around their communities." LaHood mentions that the Highway Trust Fund "is going to probably be in some serious need of plussing up," and while the administration is not planning to raise the gas tax, it is "thinking about an infrastructure bank that could fund some projects of national prominence." This concept would allow states or even the federal government to sell bonds and then set aside money for ideas of state or national significance, he says. "It's been tried in some states, and it works, and you can generate a lot of money."
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War Funding Bill Provides $4.4 Billion for Construction
ENR (06/12/09) Ichniowski, Tom

House and Senate negotiators have agreed on a final version of the $106 billion fiscal 2009 supplemental spending bill, which includes about $4.4 billion for defense and non-military construction in addition to Iraq and Afghanistan war funding. Much of the construction spending is going toward projects within the United States, including hospital projects in Maryland and Virginia, other military hospital construction elsewhere in the country, and $170 million to start building a new data center for the National Security Agency. There is also $847 million for Army Corps of Engineers work on the Gulf Coast, as well as $896 million to the State Department for new Pakistan embassy and consulate facilities.

Bridging The Gap
New York Times Magazine (06/08/09) Petroski, Henry

The stimulus funding for American infrastructure provides the opportunity to build new roads and bridges that embody the best engineering sense and architectural grace, writes Duke University civil engineering professor Henry Petroski. The elegance of the Pacific Coast Highway bridges built in Oregon during the Great Depression "demonstrate that essential structures need not be aesthetically inferior," he writes. The Brooklyn Bridge stands as a masterful blend of engineering and aesthetic sensibilities, while its nearby neighbors the Williamsburg and Manhattan bridges both lose out in one way or the other. The Williamsburg Bridge is well engineered but aesthetically ill-considered, while the Manhattan Bridge was designed to be beautiful but has suffered from structural flaws. "For years now we have known that significant parts of our infrastructure are dated in both appearance and operation, but it has generally taken catastrophic structural failures to focus our attention on the problem," writes Petroski, praising the ability of the Minnesota Department of Transportation to bounce back from the Interstate 35 bridge collapse with an elegant-looking and technologically advanced replacement. This new bridge includes a network inconspicuous sensors to track the state of its structure and roadbed, along with automatic antifreeze dispensers—technological advances geared toward long-term savings that only increased the bridge's building cost by 1 percent. Petroski lauds Minnesota for giving the contract to the bidder with the most attractive and reliable design rather than the lowest-cost bidder, and in his conclusion he writes, "Increasingly, new bridges are expected to be hallmarks of cities large and small, which means that closer attention is being paid to their appearance, not just their price."
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Runway Talent Show
Roads & Bridges (05/09) Vol. 47, No. 5, Hajj, Elie Y.; Sebaaly, Peter E.

The use of reclaimed asphalt pavement (RAP) on airfield pavements has been somewhat limited compared to its use in highway pavements. As part of the federal government's Airfield Asphalt Pavement Technology Program (AAPTP), Project 05-06 sought to revise technical guidance on the uses and advantages of RAP in airfield hot-mix asphalt (HMA) materials. The presence of RAP in the mix poses a concern for design engineers because of the complex interaction between the new and recycled parts of the mix. The use of low-quality RAP materials, for instance, can cause premature failure of the HMA pavement, but such issues can be bypassed by deploying a good quality-control program. The use of RAP on airfields is governed by the Federal Aviation Administration (FAA) in sections 401 and 403 of Advisory Circular 150/5370-10C, while UFGS-32 12 15 is used for military airfields. These specifications indicate that RAP can only be used in lower layers except on shoulders. The maximum portion of RAP allowed in the mix is 30 percent as long as the resulting mix complies with all the requirements specified for virgin mixes. Ideally, RAP materials should be not contain any contaminants like coal tar, coal tar sealer, rejuvenator, or paving fabrics, and should come from pavements that were built to highway or airport standards.
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Building Information Modeling - Current Use and Trends
Structural Engineer (05/09) Goupil, Jennifer

Structural Engineer magazine's latest State of the Industry survey, conducted in March 2009, followed up on a September 2006 survey of readers about their BIM use to learn what has changed in the past two and a half years in the architecture, engineering, and construction industry. Just 29 percent of respondents in the previous survey indicated being familiar with BIM, but nearly all were in the new survey, and 44 percent have used BIM on a project now, compared to just 23 percent in 2006. Respondents continue to expect that 50 percent of the industry will be using BIM regularly within the next 5 to 10 years. Forty-three percent of respondents expect widespread adoption of integrated project delivery between 5 and 10 years from now, and 89 percent believe most of the industry will be using it within 15 years. It is clear from the data that the structural engineering profession in general is now aware of BIM, and while not all firms are using it now, most expect it to penetrate the industry in general in the next 10 years.
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Use and Popularity of Concrete Increases
Construction Bulletin (06/15/09) Chang, Ivy

Advanced concrete-mix research has made it viable for all sorts of construction projects, which makes it vital for ready-mix suppliers to be well informed about how the different ingredients affect one another. "Mix designs are becoming more and more specialized, and it's really critical that ready-mix suppliers have a working knowledge of how concrete ingredients -- cement, water, aggregates, and admixtures -- interact so that we meet the project's structural requirements for strength, sustainability and appearance," said John Lee of the Minnesota-based concrete supplier Cemstone. The concrete mix is generally specified by the engineer of record, said Lee, while Cemstone can provide its advisory services to help predict various issues, particularly the effects of the harsh weather that Minnesota experiences. Designers have been turning more attention to the environmental soundness of their concrete mix as well, according to Lee, who said that using recycled materials and industrial byproducts such as fly ash, furnace slag, and granulated blast goes along way toward making the concrete green and reliable. "Concrete that uses fly ash, slag and silica fume will be higher in strength, make concrete less permeable and, therefore, less susceptible to salt and water migration which can corrode reinforcing steel in the concrete," said Lee. Meanwhile, a new technology on the scene is self-consolidating concrete (SCC), which Dave Huiskes of the South Dakota firm Concrete Materials said "has the workability, strength and the high slump that many projects need." SCC is highly flowable and nonsegregating concrete that can spread and fill formwork and encapsulate all sorts of reinforcements with no mechanical vibration, using super plasticizers to make a flowing concrete with high performance specifications.
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Building the Student Housing Village
Urban Land Magazine (05/09) Vol. 68, No. 5, P. 69; Painter, Susan; Martin, David C.

Institutions are increasingly being inspired by the residential college system in which dining facilities, academic spaces, and recreational amenities are bundled together to mesh academic and social activity and cultivate a sense of community. Mixed-use campus housing villages typically begin with a cluster of six to 10 double rooms organized around shared spaces such as bathrooms, living areas, or study rooms. Several clusters are grouped together under the supervision of a resident assistant with a shared larger lounge/kitchen or other common areas where social interaction and other communal activities can occur. Four or five of these extended clusters are integrated into a house of 100 to 120 students. Four or six residential houses are centered around a gathering place to establish a village, and the residences' ground floors ideally blend services—cafes or dining halls, classrooms, convenience stores, recreational spaces, etc.—to encourage residents to stay within the village as well as draw others from the larger campus community. Mixed-use campus housing environments also can be designed with infill housing that connects existing, more traditional housing to the amenities of a village. Institutions have been encouraged to enlist for-profit developers to create mixed-use facilities as a result of public funding cuts. To accommodate the unique needs of students, building systems should include high-speed Internet access and have the flexibility to support future technologies through the provision of "accessible pathways."

Energy Use in Buildings Can Be Cut 60 Percent by 2050, Says Global Study
Building Design + Construction (06/09)

Today, buildings use more energy than any other sector - approximately 38 percent of global energy use, versus 33 percent for industry and 26 percent for the transportation sector. The World Business Council for Sustainable Development (WBCSD) has released a new research report, which contends that it would be possible to cut energy use in buildings by 60 percent by 2050 if a coordinated, global effort is launched. Titled "Transforming the Market: Energy Efficiency in Buildings," this is the most comprehensive study ever conducted on the subject. Its findings apply to both existing and new building stock, with the ultimate goal being that buildings produce or recover as much energy as they consume. Skanska AB is one of 14 global companies behind the study. Skanska President and CEO Johan Karlstrom states, "Buildings use more energy during their life cycle than any other sector, and as such are a major contributor to climate change. Unless there is immediate action, thousands of new buildings will be built without any concern for energy efficiency and millions of existing, inefficient buildings using more energy than necessary will be standing in 2050." The study developed an advanced computer model for analyzing energy use for millions of existing and new buildings and projecting it out to 2050. Based on these simulations, researchers identified a half-dozen principle recommendations for action: one, strengthen building codes and energy labeling for better transparency; two, utilize subsidies and price signals to "incentivize" energy-efficient investments; three, foster integrated design approaches and innovations; four, develop advanced technology to enable energy-saving behavior; five, develop workforce capacity for energy saving; and, six, mobilize for a more energy-aware culture.
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