Construction businesses today do not have the margins to write-off cost overruns or unpaid contract balances as they could have in the past when there were more projects and higher profits. More parties are willing to fight for the last dollar. These disputes can add up, and the attorney’s fees can be disproportionately large. Without a compromise or other alternative, construction businesses must proceed with litigation and hope to manage attorney’s fees so they do not approach -- or exceed -- the amount in dispute. But there are other options. The American Arbitration Association, or AAA, and JAMS, the “Resolution
The economy is getting better and hopefully you’ve mostly survived the bloodbath that has been the last year. Most businesses have used this time to “trim the fat,” “refocus,” and “expand their expertise.” I was recently asked by a job seeker about what he could do to make himself more marketable. The reality is, at least in most firms, that there aren’t going to be a lot of jobs for a while. My firm has reduced everyone to four-day work weeks. So, even if the economy does completely rebound, we’ve got a built-in ability to expand our workforce 20% without
Georgia: Peachy Again? There’s no doubt that 2009 was a tough year for Georgia contractors and design firms. McGraw-Hill Construction estimates the value of new 2009 contracts tallied just $12.2 billion, or 30% lower than 2008’s $17.5 billion—and less than half the amount generated during 2007. Related Links: 2010 Southeast Construction Outlook Florida 2010 Outlook North Carolina 2010 Outlook South Carolina 2010 Outlook The coming construction season should offer some relief. According to McGraw-Hill Construction, the total value of new Georgia construction contracts should jump by 24% overall and tally $15.2 billion. That’s still a historically modest figure, but likely
North Carolina: Mild Upturn The past year wasn’t anything to celebrate in the Tar Heel State, either. By McGraw-Hill Construction’s estimates, the value of new contracts fell 26% for a 2009 total of almost $14.2 billion, with residential (-39%) and nonbuilding (-27%) the most impacted construction types. Related Links: 2010 Southeast Construction Outlook Florida 2010 Outlook Georgia 2010 Outlook South Carolina 2010 Outlook An expected 5% uptick should equate to nearly $14.9 billion in new 2010 contracts in North Carolina, says McGraw-Hill Construction. As elsewhere, 2010 will be a mix of good news and bad news for North Carolina firms.
South Carolina: Surging? Boeing’s selection of South Carolina for its new final assembly plant for the 787 Dreamliner has this state feeling positive. Related Links: 2010 Southeast Construction Outlook Florida 2010 Outlook Georgia 2010 Outlook North Carolina 2010 Outlook McGraw-Hill Construction expects that to continue in 2010, as it predicts South Carolina to have the second-strongest percentage improvement in new contracts for states in the Southeast Construction region. The company forecasts a 16% overall increase, for a total value of about $8.4 billion for 2010. Again, however, that increase will only partially offset last year’s larger decline of about 30%.
Contractors are normally an optimistic breed. But with 2009 firmly cemented as the fourth straight year of declining prospects, they seem to finally be feeling a little down. Industry representatives interviewed for this story have apparently exchanged their normal cockeyed optimism for a more realistic perspective. Slide Show Southeast Construction posted a one-click online poll in November, with readers asked to classify their opinions about the coming construction season. The highest percentage, 30%, chose “declining slightly” to sum up their expectations for 2010. Overall, 49% predicted a downturn of some kind, while only 27% foresee an uptick in their business
The new year will likely bring considerably more pain to contractors and designers working in the Southeast Construction region, especially as firms focused on a still-declining commercial sector work off their thinning backlogs. Companies fortunate enough to be working in publicly funded markets should start to see some improvement in 2010, however. Related Links: Florida 2010 Outlook Georgia 2010 Outlook North Carolina 2010 Outlook South Carolina 2010 Outlook Southeast Industry Outlook National Outlook 2010 That’s the opinion of McGraw-Hill Construction, publisher of Southeast Construction, in its forecast for the four-state region of Florida, Georgia, North Carolina and South Carolina. The
Florida: Residential Rises? The previous year was definitely a stormy one for firms busy in the Sunshine State. McGraw-Hill Construction’s latest estimate for Florida’s 2009 construction activity predicts an 18% overall decline. This is the result of a 27% downturn in the state’s nonresidential projects as well as a 36% further retrenchment in the residential market. Fortunately for Florida firms, the nonbuilding sector buoyed the overall number somewhat, growing by a significant 35% during 2009. Related Links: 2010 Southeast Construction Outlook Georgia 2010 Outlook North Carolina 2010 Outlook South Carolina 2010 Outlook For 2010, McGraw-Hill predicts a 6% overall increase
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