Prevailing wage rules required by the federal stimulus program may drive up costs and cause some projects to miss their goals, according to a new study by the U.S. Government Accountability Office. The study, ordered by Senate Minority Leader Mitch McConnell (R-Ky) and released on March 25, contends that 40 federal programs with construction funding authorized under the 2009 American Recovery and Reinvestment Act are now subject to the wage rules under the federal Davis-Bacon Act. Seven programs are brand-new, and 33 were not previously covered by the law. They account for $102 billion of the $309 billion appropriated for
...Insight steel analyst. But even those price levels may be too high. “I don’t see how low worldwide demand can support these prices,” he points out. Steel prices are being driven not by demand but by a surge in scrap prices. “Scrap prices have gone crazy since late 2009. They are now just below 2008’s peak, and they could end up duplicating the 2008 spike,” says Anton. “Right now, inventories are thin, which is allowing higher prices to sneak back in. But once inventories are restocked, I think we will see prices fall back off.” The China Connection The inventory
The three index tables on this page each represent various components of ENR’s two primary indexes. The Materials Price Index is the materials component of both ENR’s cost indexes. The Common Labor Index is the labor component of ENR’s Construction Cost Index, and the Skilled Labor Index is the labor component of ENR’s Building Cost Index. Related Links: ENR's Complete First Quarterly Cost Report 2010 View entire construction economics section on enr.com ENR publishes only cost-index history tables in its First Quarterly Cost Report. However, ENR’s Website, enr.com, will keep you current with historical data and monthly updates. Historical tables
If there is any good news this quarter for the glass curtain-wall and window-wall sector, it is only that things probably can’t get much worse. That’s what glazing contractors, owners and architects are saying this spring as prices for glass-wall systems continue to tank. Source: Bureau Of Labor Statistics. Producer price index. Related Links: Economics: Despite Upturn in Steel, Lumber and Energy Prices Deflation Sweeps Cost Index Board Markets: Survey Shows Contractor Confidence Slowly Rising Homebuilding: Lumber, Wallboard Prices Perk up With Modest Rebound Executive Pay: Key Players Dodge Salary and Bonus Squeeze Methodolgy: What is Driving Costs ENR's Complete
Foreclosures, unemployment, tighter lending and unstable prices weigh heavily on the commercial housing sector, but falling demand has not had a similar effect on the cost of materials. Photo: Pulte Corp. Production cuts at U.S. and Canada mills propelled a 40% price increase since 2009. Related Links: Economics: Despite Upturn in Steel, Lumber and Energy Prices Deflation Sweeps Cost Index Board Markets: Survey Shows Contractor Confidence Slowly Rising Glass: Recession Shatters Prices, More Cuts Expected During 2010 Executive Pay: Key Players Dodge Salary and Bonus Squeeze Methodolgy: What is Driving Costs ENR's Complete First Quarterly Cost Report 2010 City Indexes:
The construction industry has been suffering for two years through the toughest recession in 20 years, perhaps longer. The depth of the downturn has burned away the industry’s natural optimism, and major firms are taking a hard look at the market and at the U.S. economy. However, they now are starting to believe that a recovery should begin next year. Related Links: Economics: Despite Upturn in Steel, Lumber and Energy Prices Deflation Sweeps Cost Index Board Homebuilding: Lumber, Wallboard Prices Perk up With Modest Rebound Glass: Recession Shatters Prices, More Cuts Expected During 2010 Executive Pay: Key Players Dodge Salary
Firms looking to boost sagging bottom lines and gain more-robust public-sector construction markets generated a record attendance of more than 550 at this year’s federal and military workload briefings, sponsored by the Society of American Military Engineers on March 18 in Alexandria, Va. Traditional pockets of “milcon” work—such as in base closure and housing—are winding down, officials said. But overseas expansion and new initiatives in energy conservation and facility “quality of life” upgrades are boosting work for the short term, just as new conference attendees were boosting their profiles. Photo: Bruce Buckley / ENR DOD service chiefs outline milcon budgets
Although ENR’s cost indexes measure the costs of non-residential buildings, the downturn in the housing market still had a major impact on index movement. During this quarter, lumber prices in the indexes slipped another 0.8% after dropping 27% over the previous five years. Falling lumber prices had been offset by surging steel prices in 2008. However, steel prices were rolled back in 2009 and are just now firming, but with an uncertain future. Source: ENR Construction Economics Dept. Related Links: Economics: Despite Upturn in Steel, Lumber and Energy Prices Deflation Sweeps Cost Index Board Markets: Survey Shows Contractor Confidence Slowly
New construction starts in February climbed 5% from the previous month, to a seasonally adjusted annual rate of $440.9 billion, according to McGraw-Hill Construction. Much of the lift was provided by the public works sector, which through the first two months of 2010 was running 4% ahead of the same period of 2009, says MHC chief economist Robert Murray. Among the top public works projects adding to February’s starts was the $917-million DFW Connector project serving the Dallas-Ft. Worth International airport. In addition, sewer and water projects in February increased 15% and 39%, respectively, “picking up momentum after the diminished
Top executives who banked on big bonuses during the boom years have seen a significant portion of their compensation packages washed away during the current recession. Related Links: Economics: Despite Upturn in Steel, Lumber and Energy Prices Deflation Sweeps Cost Index Board Markets: Survey Shows Contractor Confidence Slowly Rising Homebuilding: Lumber, Wallboard Prices Perk up With Modest Rebound Glass: Recession Shatters Prices, More Cuts Expected During 2010 Methodolgy: What is Driving Costs> ENR's Complete First Quarterly Cost Report 2010 City Indexes: Inflation from Atlanta to Seattle and L.A. to Boston Stats: How to use ENRs indexes How to Find Cost
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