As the year draws near its end, construction company owners and their fiduciaries should keep a close eye on an accounting change recently proposed by the Financial Accounting Standards Board ( or FASB). Depending on the industry’s response this year, the change could go into effect in 2011. The focus of the change is leasing, including equipment leasing. If enacted it likely will have a sizeable impact on construction companies, and here’s why: Under current standards, leases are split into two categories: capital leases, which must be reported on balance sheets, and operating leases, which are allowed to stay off
Bidding on public projects for state or local governmental entities involves a number of issues not necessarily present in the private sector. For example, confidentiality concerns exist when submitting information to a governmental entity. When submitting a bid or proposal, a contractor may be required to provide sensitive information, including but certainly not limited to financial information. Additionally, a contractor may have invested time and money in determining the best manner of presenting a bid or proposal. The contractor generally has an interest in keeping this information private and out of the hands of its competitors. But the Texas Public
It takes a certain savvy to build collaboration in a hard-bid environment. If the team is committed to quality, it can happen. However, every project needs good processes. Hard bidding makes those more valuable. Having worked for an architectural firm for 11 years, and as a staff architect for a hospital for 19 years, I am sharing lessons learned I hope will be useful. Building Owners: Be Committed to Pre-Planning Every owner with continual construction is well served to maintain a professional staff that is current, knowledgeable and well-seasoned in the development of buildings and facility systems. The staff can
Balfour Beatty Construction of Plantation, in partnership with James A. Cummings of Fort Lauderdale, was awarded a contract to manage construction for the Terminal 4 Gate Replacement at Fort Lauderdale-Hollywood International Airport. Valued at approximately $100 million, the project is part of the Broward County Aviation Dept.’s $1-billion expansion program. div id="articleExtrasA" div id="articleExtrasB" div id="articleExtras" Intended to make room for the extension of the south runway, the project represents the first of two phases that will replace the existing concourse and alter its orientation from north-south to east-west. Preconstruction for the project is slated to begin in the fall,
Work on the fourth and final $260.3-million package for the new Orlando Veterans Administration Medical Center will start in mid-October, as Brasfield & Gorrie begins building out the 1.1 million-sq-ft hospital and landscaping on the $665 million, 65-acre medical campus. The contractor was awarded the project in early September. “The schedule is very aggressive, 720 calendar days, which is a little quicker than normal for that size hospital,” says George Paulson, project executive of Brasfield & Gorrie of Lake Mary, Fla., who expects a notice to proceed on October 13, 2010. Becky Guogus, a biomedical engineer with the Orlando VA,
The value of new construction contracts in the state of Georgia sank by 46% overall in August, according to McGraw-Hill Construction, publisher of Southeast Construction. During the month, the state of Georgia experienced roughly $671 million in new contracts for future construction activity, well down from last August’s $1.2-billion tally. div id="articleExtrasA" div id="articleExtrasB" div id="articleExtras" The nonbuilding market’s pace of new contracts dove by 61% compared to a year ago, registering $152.3 million in new projects, down from the $391.9 million of a year ago. The value of new nonresidential contracts fell by a similar pace, dropping 55% to
BD (Becton, Dickinson and Co.), a medical technology company based in New Jersey, announced plans to invest $38 million in a new distribution center in Four Oaks, N.C. div id="articleExtrasA" div id="articleExtrasB" div id="articleExtras" Plans call for a 720,000-sq-ft facility to be constructed on 130 acres in the Four Oaks Business Park, with capacity for expansion to more than 1.1 million sq ft. BD expects construction to complete by mid-2011, and the facility to begin receiving product in late 2011. The project is pursuing LEED certification.
The Fulton County Board of Education awarded Evergreen Construction of Atlanta a $45-million contract to build the new Bethany Road High School in Milton. Site work has begun, with the school scheduled to open in August 2012. Image Courtesy CGLS Architects Evergreen Construction is building the $45-million Bethany High School. div id="articleExtrasA" div id="articleExtrasB" div id="articleExtras" The 320,885-sq-ft, two-story high school was designed by Chapman Griffin Lanier Sussenbach Architects of Atlanta. It will feature 99 instructional units and can support an enrollment of over 1,900 students. Parsons Corp. is Fulton County Schools’ program manager. School amenities include a 600-seat performance
The value of new construction contracts for future construction in Florida fell by 17% overall in August, led by major declines in both the nonresidential and nonbuilding categories, according to McGraw-Hill Construction, publisher of Southeast Construction. During August, the state experienced slightly more than $1.4 billion in new contracts for future construction. The previous August, the value of contracts totaled more than $1.7 billion. div id="articleExtrasA" div id="articleExtrasB" div id="articleExtras" The nonresidential market fell 29% during August to tally nearly $405.9 million, down from the $575.5 million recorded last August. The value of nonbuilding contracts fell 35% in August, for
Turner Construction Co. has begun work on a new $100-million contract to renovate and expand Harrah’s Cherokee Hotel Casino in Cherokee, N.C. div id="articleExtrasA" div id="articleExtrasB" div id="articleExtras" The project will add 110,000 sq ft of gaming floor area to the casino, while renovating the existing 130,000 sq-ft gaming floor. The scope of work will also provide bars, restaurants and entertainment stages to the casino and hotel. A 70-foot interior waterfall and rotunda area also will be added. Completion is scheduled for January 2013. The project is part of a renovation and expansion program undertaken by the Eastern Band of
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