Related Links: Bureau of Labor Statistics release See Associated General Contractors' statement See Associated Builders and Contractors' analysis In an encouraging sign for construction, the industry’s jobless rate dipped in September, to 13.3%, from the August level of 13.5%, the Labor Dept.'s Bureau of Labor Statistics reported. Last month's mark also was much improved from the 17.2% rate in September 2010.Moreover, construction gained 26,000 jobs last month, seasonally adjusted, according to the latest monthly BLS unemployment report, released on Oct. 7.September was the 12th-straight month in which construction's unemployment rate improved over year-earlier figures.On the down side, however, construction’s unemployment
Courtesy FRA Rae says that 72 of 77 rail projects under ARRA are now in some phase of development. Related Links: DOT Drives To Commit Rail Aid The 2009 American Recovery and Reinvestment Act provided $8 billion for high-speed passenger rail and regular appropriations provided about $2 billion more. It’s been up to the Federal Railroad Administration to set up the program, evaluate a flood of applications for the money and award grants. But before design and construction work can get going, FRA must negotiate and sign agreements with states and freight railroads, on whose lines many of the proposed
Related Links: Dept. of Justice press release Two Army Corps of Engineers contracting officials and two other men were arrested and charged with conspiracy, bribery, kickbacks and money laundering on two Corps contracts.The U.S. Attorney for the District of Columbia, Ronald C. Machen, Jr., said, “This indictment alleges one of the most brazen corruption schemes in the history of federal contracting.”Two Corps contracts are at issue in the case: An indefinite delivery/indefinite quantity contract with a maximum value of more than $1 billion and a planned contract that was to have a maximum value of $780 million. Neither was competitively
Related Links: DOT Secretary LaHood's statement Gov. Christie's statement ENR Oct. 13, 2010 story: Blurry Tunnel Vision Oct. 7, 2010, enr.com story: "Citing Fears of Cost Overruns, N.J. Gov. Scraps Trans-Hudson Tunnel" In a deal that closes a key chapter in a long-running dispute between the U.S. Dept. of Transportation and New Jersey, the state will have to repay only $95 million of the $271 million that DOT had disbursed for early phases of a commuter-rail tunnel that New Jersey Gov. Chris Christie (R) cancelled last year.The nine-mile-long Access to the Region’s Core (ARC) tunnel was to run under the
A deal with Sen. Tom Coburn (R-Okla.) that freed a stalled stopgap highway-aviation bill is changing another bill. A two-year highway measure that Environment and Public Works panel leaders are drafting now will give states new flexibility in the transportation enhancements program. Under current law, states must spend 10% of their Surface Transportation Program aid on bike paths and other enhancements. Coburn said that diverts funds from other uses, such as bridge upgrades.
PHOTO COURTESY OF ACEC / Cable Risdon JOBS IMPACT KCI Technologies Neimeyer says the withholding mandate would prevent his company from hiring 100 new engineers. Related Links: Obama, Republicans Clash Over Deficit-Cutting Proposal Senate Bill Will Have Flexibility for Enhancements Program Construction officials' hopes have risen that Congress will repeal what they view as a financially harmful mandate: a requirement that agencies withhold from contractors 3% of each contract's value. The provision, enacted in 2006, is to take effect in January 2013, and industry executives say it would squeeze or even wipe out their profit margins on government projects.The 3%
Related Links: Delayed FEMA Projects, Listed by State Thanks to another near-the-deadline deal in the Senate, Congress seems to be on the way to averting a government-wide shutdown and replenishing the Federal Emergency Management Agency’s nearly empty disaster-aid fund. On Sept. 26, the Senate approved a short-term spending measure that, if the House agrees to it, will keep federal agencies operating through Nov. 18.The new stopgap, which the Senate passed by a strong 79-12 vote, also would provide $2.65 billion for FEMA’s Disaster Relief Fund.The Senate action on the continuing resolution, or CR, came just four days before the 2011 federal
President Obama and congressional Republicans are squaring off again in a budget fight, this time over Obama's new plan to slice the deficit by $3.6 trillion over 10 years. The plan, released on Sept. 19, includes tax hikes to get more revenue from wealthy taxpayers and modifications to Medicare and Medicaid. Congressional Republicans blasted the proposal, signaling a deal will be hard to achieve.The legislative package also would cover the $447-billion cost of Obama's Jobs for America Act, unveiled on Sept. 9 (ENR 9/19 p. 9), which includes $105 billion for transportation, schools and other infrastructure.GOP lawmakers have balked at
Related Links: Full 3Q Cost Report (Subscription required) Construction economists continue to dial back their forecasts for 2011. Single-family housing, public works and the institutional-building markets have all stumbled badly in 2011, says Robert Murray, McGraw-Hill Construction's chief economist. The few bright spots, such as multifamily housing, manufacturing and powerplants, “won't be able to outweigh the minuses,” he says.Murray estimates that total construction starts in 2011 will come in at $408 billion, a 4% decline from 2010. Since ENR's second quarterly cost report, the forecast for total residential work has been pulled back from a 5% increase to a 2%
With the Oct. 1 start of fiscal year 2012 around the corner and none of the spending bills for that year enacted yet, congressional appropriators are again turning to a stopgap funding measure to keep federal agencies operating.On Sept. 12, House Appropriations Committee Chairman Harold Rogers (R-Ky.) said he planned to introduce a continuing resolution soon. There was no word at press time on how many weeks' funding the bill would provide.As of Sept. 12, the House had approved six of the 12 appropriations bills funding various departments and agencies for 2012. The Senate had passed just one: the military
