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...at University of Nevada-Las Vegas. “Recently we estimated costs of $285 per sq ft on a student services addition and the bid came in at $452 per sq ft.” To adapt, officials are redesigning, reducing scope or going CM at-risk with a guaranteed maximum price. “We’re also looking at private developers for lease-purchase options,” he says.

County projects similarly are being hard hit. Clark County is experiencing shortages in PVC conduit and traffic signal poles, and shrinking bid lists are drawing 50% fewer bidders than in years past. Resort operators and private developers pay bigger fees and offer better contract terms. Right-of-way acquisition and infrastructure construction are not keeping pace. “A lot of growth is taking place before infrastructure is in place,” says Bobby Shelton, county spokesman.

The county’s development services office issued over 90,000 construction permits and completed over 740,000 inspections in 2005, says Ron Lynn, Development Services building director. Plan review now takes five to six weeks to complete—50% longer than in recent years. Finding “technically competent people” has been tough, says Lynn. He’ll spend $4 million this year outsourcing plan reviews.

Busy constructors are hand-picking jobs and prequalifying owners because they can’t afford to risk subcontractor availability if the project isn’t real, Martin says. The region’s work volume has attracted out-of-state builders such as Tutor-Saliba Corp., Sylmar, Calif., and New York City-based Bovis Lend Lease LMB and Turner Construction, among others. But owners are fooling themselves hiring such companies, since everyone is still forced to use the same local subcontractor pool, which is 15 to 18% overtaxed, Martin says. Beyond start dates, schedules, owners, and financing, some subs will refuse a job because of the project’s managers and superintendents.

Schools Take LEED

Clark County School District has become more accommodating to the workloads and sub availability. It now schedules construction bids before school board meetings in order to quickly award contracts, and it has extended completion dates. Clark County School District, the nation’s fifth largest with 291,510 students, is growing by about 15,000 students annually. District officials are nearing the end of a 10-year, $3.5-billion, 88-school, bond program (ENR 9/19/05 p. 34). Upon completion of the bond program in 2008, officials plan to seek approval of another bond to build 120 more schools by 2018.

The school district is trying to control operating costs by using less water and energy. It is revamping design guidelines to cap energy requirements for new schools at 30,000 Btu per sq ft, or half of what older schools use. It also is pursuing Leadership in Energy and Environmental Design (LEED) certification, the rating system developed by the U.S. Green Building Council to measure building sustainability, at some of its new schools.

Last summer, legislators passed a law requiring all state-funded projects to meet basic LEED certification. Nevada is only the second state in the nation to pass such legislation. Private developers who achieve a LEED Silver rating or higher now qualify for up to a 10-year, 50% property tax cut.

Rage for Roads

With nearly 7,000 new residents each month in 2005, pressure on Clark County’s roads is growing. The Regional Transportation Commission estimates that every 1,000 new residents add 750 more vehicles to traffic. Officials are pursuing alternative financing schemes to expedite construction. Las Vegas area voters approved a tax-backed ballot initiative in 2002 for $2.6 billion in transportation improvements, including 425 miles of high-speed vehicles lanes on local highways and synchronized traffic lights.

The Nevada Transportation Board last September approved a record $1-billion statewide road and highways construction program for the next fiscal year, with roughly 47% of that money headed to southern Nevada. Projects include the $95-million U.S. 95 widening between Valley View and Rainbow boulevards in Las Vegas. It’s the largest single-road job in state history, says NDOT.

Welcome to Las Vegas. McCarran will reach its capacity before new airport opens in 2017. (Photo courtesy of Clark County Department of Aviation)

McCarran International Airport saw over 44 million passengers in 2005, 6.8% more than in 2004. And despite $2.4 billion in expansions, it’s expected to reach its 53-million-passenger capacity before a new $4-billion facility opens just south of Las Vegas in 2017 (ENR 10/17/05, p. 17). Every new room the city adds brings another 320 passengers through McCarran, says county Aviation Director Randall Walker.

Nevada secured a 30.1% funding increase in the last federal transportation bill, yet it still falls $4 billion short of its need over the next 10 years, say state officials. Gov. Kenny Guinn (R) has created a Blue Ribbon Task Force to study future highway projects and funding options. The “task force is exploring public-private partnerships and managed lanes,” says Jeff Fontaine, director of the Nevada Dept. of Transportation. “We’ve never done one in Nevada.” The findings will be reported in July.

Glitz and Dazzle. The glamour, night life and excitement of the Strip drew 38.2 million visitors in 2005 and their money is fueling the area’s boom. (Photo courtesy of The Las Vegas News Bureau)

Changing market dynamics are squeezing transportation construction at this critical time. “The per capita fuel consumption is declining while the per capita miles are increasing for a lower amount of revenue—so that creates a problem,” says Fontaine.

But Las Vegas will remain Las Vegas, come traffic jams or low water. Its round-the-clock night life continues to draw fun-seekers and the money they spend draws newcomers willing to pay for schools, roads and water. And the middle-aged roué rolls on to the next party.