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How a Badly Needed New Firehouse Proved the Danger of Low Bids

July 9, 2018 - 1:54pm

Original article written by Thomas C. Schleifer PhD and appears on ENR.com

A few years ago, a group of business and tradespeople in a small but growing midwestern U.S. town needed a bigger firehouse. They understood from personal experience how the world works, but because of pressure from the town they opened the project to all bidders and didn't use a prequalification process. The low bidder, $at 2.5 million, was a contractor with a reputation for being difficult to do business with. The business and tradespeople suspected the contractor was not qualified, but they had not required any prequalification process to screen bidders.

They should have known better.

I have been in construction almost 60 years and have had too much experience with low bidders to even let one near my property. Selecting based on a low bid practically guarantees you will end up with the least qualified contractor for your project and that it will cost you more in the long run in return for which you will get lower quality and more headaches.

Construction Adds 13,000 Jobs in June

July 9, 2018 - 12:42pm

According to data released Friday by the US Bureau of Labor Statistics, the national construction industry added 13,000 net new jobs in June, following 29,000 net new jobs in May (revised from 25,000), and 21,000 in April.

Press Release from Associated Builders and Contractors, Inc (ABC)

Full release

Construction Employment Retains Momentum in June, Says ABC; Unemployment Rate Increases as Labor Force Grows

WASHINGTON, July 6—The U.S. construction industry added 13,000 net new jobs in June after adding 29,000 net new jobs in May (revised upward from 25,000+), according to an analysis by the Associated Builders and Contractors of data from the U.S. Bureau of Labor Statistics. The industry has added 282,000 net new jobs during the past calendar year, a 4.1 percent increase.

US construction spending rose 0.4 percent in May

July 9, 2018 - 12:18pm

Key Takeaways

  • Construction spending, which totaled $749 billion on a seasonally adjusted annual rate for May, is up 3 percent from the same time last year.
  • Public nonresidential spending increased 0.6% for the month and 4.9% for the year, while the private sector contracted 0.3% for the month but increased 1.8% year-over-year.
  • "While private construction spending should remain sturdy during the months ahead given healthy backlog and current economic momentum, the outlook for construction spending may be rather different in a few quarters.”
  • Continued labor shortages and rising materials costs threaten future growth in demand.

Press Release from Associated Builders and Contractors, Inc.

Trump Sets Heavy Tariffs on Canadian, Mexican, EU Steel Imports

June 5, 2018 - 11:09am

Original article written by Tom Ichniowski on ENR.com

Action also includes tariff on aluminum from those countries

President Trump’s decision to impose tough tariffs on steel and aluminum imports from Canada, Mexico and the European Union quickly sparked retaliatory measures and is expected to lead to cost increases for U.S. construction contractors and for makers of construction equipment.

The White House announced on May 31 that 25% tariffs on steel imports from the three targeted exporters and 10% charge on their aluminum shipments to the U.S. would take effect on June 1.

Brian Turmail, an Associated General Contractors of America spokesman, said via email, “We are deeply troubled that the administration has opted to impose these costly new tariffs on trade from many of our closest trading partners.”

Turmail said that in the past few months many AGC firms have seen prices of products such as rebar climb by 15% to 20%, as suppliers anticipated that the U.S. would impose at least some tariffs.

Construction Adds 25,000 Jobs in May

June 5, 2018 - 10:21am

According to data released Friday by the US Bureau of Labor Statistics, the national construction industry added 25,000 net new jobs in May. This follows a 21,000 net new job gain in April.

Press Release from Associated Builders and Contractors, Inc (ABC)

Full release

WASHINGTON, June 1—The U.S. construction industry added 25,000 net new jobs in May, according to Associated Builders and Contractors’ (ABC) analysis of data from the U.S. Bureau of Labor Statistics. This follows a 21,000 net job gain in April (revised upward from 17,000). The industry has gained 286,000 jobs on a year-over-year basis, the largest such increase since April 2016.

Nonresidential construction employment increased by 15,400 net jobs for the month. Nearly all of that growth came from the nonresidential specialty trade contractor subsector, which added 14,800 net jobs in May. However, the nonresidential building subsector lost 4,400 net jobs in May.

Nonresidential Construction Remains Unchanged in April

June 5, 2018 - 9:51am

Key Takeaways

  • Nonresidential construction spending remained unchanged in April on a monthly basis, although year-over-year spending is up 6.1%
  • Public sector spending fell 1.4% in April, but is up 7.3% year over year.
  • Spending in the public safety category, which includes spending on police and fire stations, is up by nearly 17%.

Press Release from Associated Builders and Contractors, Inc.

WASHINGTON, June 1—Nonresidential construction spending remained unchanged in April on a monthly basis, according to an Associated Builders and Contractors (ABC) analysis of U.S. Census Bureau data released today. However, year-over-year spending was up a sturdy 6.1 percent.

Private sector spending increased 0.8 percent on a monthly basis and is up 5.3 percent from a year ago. Public sector spending fell 1.4 percent in April, but is up 7.3 percent year over year.

New Construction Materials Coming to US?

May 3, 2018 - 7:25pm

'Green' concrete could be game-changer for construction industry

Microscopic flakes of graphene add strength and durability — but also raise cost and safety concerns.

Original article on NBC

Scientists have been tinkering with concrete in an effort to improve upon the world's most widely used construction material — and they’ve notched some notable successes.

New forms of concrete can trap and store the greenhouse gas carbon dioxide, break down pollutants from exhaust fumes, and help protect aging infrastructure by sealing cracks as they form. And now scientists in the U.K. have developed a “green” concrete that they say is more environmentally friendly than the ordinary stuff, as well as more durable and more than twice as strong.

Rising Construction Costs Spark Concern

May 3, 2018 - 3:28pm

Key Takeaways

  • Prices for inputs to construction materials are 5.8 percent higher than at the same time one year ago
  • “Construction backlog and other data indicate that leaders at the typical nonresidential construction firm expect their company to be busy in 2018, but that meaningfully expanding profit margins may prove challenging.”
  • From March 2017 to March 2018, the producer price index jumped by 13.7 percent for lumber and plywood, 11.4 percent for aluminum mill shapes, and 4.9 percent for steel mill products.

Construction Material Price Expansion Continues in March, ABC Says

Press Release from Associated Builders and Contractors, Inc.

North Carolina Adopts 2017 NEC

May 3, 2018 - 2:54pm

Original article on EC&M

The North Carolina Building Code Council has adopted the 2017 NC Electrical Code (2017 NEC) with an effective date of June 12, 2018. Electrical permits that are active between the dates of February 15, 2018 through June 12, 2018 shall be allowed to be regulated entirely by the 2014 NC Electrical Code or the 2017 NC Electrical Code as an alternate method of construction by notifying the local authority having jurisdiction in accordance with section 102.5 of the NC Administrative Code and Policies.

The North Carolina Building Code Council has also adopted the 2018 NC Building Code (2015 I-Codes) with an effective date of January 1, 2019. Building permits that are active between the dates of July 1, 2018 through January 1, 2019 shall be allowed to be regulated entirely by the 2012 NC Building Code or the 2018 NC Building Code as an alternate method of construction by notifying the local authority having jurisdiction in accordance with section 102.5 of the NC Administrative Code and Policies.

Nonresidential Construction Down in March; Private Sector Falters, Public Sector Unchanged

May 3, 2018 - 2:30pm

Key Takeaways

  • Nonresidential construction spending decreased 0.3 percent in March, totaling $740.9 billion on a seasonally adjusted basis.
  • February’s spending estimate was revised roughly $10 billion higher, from $732.8 billion to $742.8 billion, rendering the March decline less meaningful.
  • “The upshot is that CEOs and other construction leaders should remain upbeat regarding near-term prospects despite today’s construction spending report ... At the same time, construction industry leaders must remain wary of a sea of emerging risks to the ongoing economic and construction industry expansions.”

Press Release from Associated Builders and Contractors, Inc.

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