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Archive for February, 2010

Wednesday, February 24th, 2010

Reed Construction Data: Margin Pressure Will Worsen for Nonresidential Contractors

National

Nonresidential building contractors are now experiencing the worst of the recession. Their reserves have been depleted by the long slowdown.

Available work keeps shrinking as project completions exceed project starts even though starts have rebounded significantly from their lowest level last summer. Wage rate gains have slowed, but the inflexibility of union contracts has delayed the recession impact on wages for many contractors.

Construction materials prices are now rising again.

Cost rises are difficult to pass through to building owners in a weak market so they reduce contractors’ margins. The plight of nonresidential building contractors will worsen at least into the summer. … Read More

Wednesday, February 24th, 2010

US architecture billings index down 2.9 pts to 42.5 in Jan.

National

A leading indicator of U.S. nonresidential construction spending fell in January to its lowest level since August 2009 as construction projects kept getting delayed or canceled, an architects’ trade group said on Wednesday.

The Architecture Billings Index was down up 2.9 points to 42.5 last month, according to the American Institute of Architects. The index has remained below 50, indicating contraction in demand for design services, since January 2008. Its lowest recent reading was in January 2009, when it reached a revised 33.9 level.

… Read More

Thursday, February 18th, 2010

The REST OF THE STORY: Why We Cannot Bid School Projects Both Ways

Pennsylvania

Pennsylvania is plagued by many obstacles when it comes to building public structures. One of the worst culprits is the Pennsylvania Separations Act of 1913.

This archaic act requires separate bids to be awarded for a minimum of four (4) prime contract packages; general trades, electrical, plumbing, and HVAC. Under the Mandate Waiver Program, established by Act 16 of 2000 and administered by the Department of Education, a school entity may apply for a waiver from these provisions to utilize single prime contracting. Doing so allows them to enjoy the same efficiency as a developer building a neighborhood of homes or a local business erecting their new office complex.

Unfortunately, the legislation that created the mandate waiver program is set to expire in June 2010, and school districts, legislators and state policymakers are being told by an ad hoc collection of “concerned” contractors and trades groups that the multiple prime delivery system is the only way to build schools safely, on time and on budget. Of course, this isn’t the case.

… Read More

Thursday, February 18th, 2010

1st Step in Dealing with PAs Prison Problem: Eliminate the Separations Act

Pennsylvania, Updates

A recent decision to move Pennsylvania inmates to other states has editorial boards calling for Pennsylvania policymakers to address the problem of prison overcrowding. Sentencing mandates and parole policies certainly play a role in causing prisons to be filled beyond capacity, but the General Contractors Association of Pennsylvania (GCAP) believes there is another issue that continues to go unnoticed – the Commonwealth has been unnecessarily hampered from increasing the capacity the Department of Corrections so sorely needs.

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Tuesday, February 9th, 2010

Mayor Announces Changes to OEO, Appeals to Unions for their Participation

Local Upate

Excerpt from Mayor Nutter’s Announcement on 2/8/10. Visit OEO for more information. … Read More

Tuesday, February 2nd, 2010

Construction employment grew in only four of 337 cities in 2009

National

U.S. construction employment grew in only four out of 337 metropolitan areas in 2009 as spending on construction projects dropped by $100 billion in December, to a six-year low of $903 billion, according to a report from the Associated General Contractors of America.

… Read More