Construction Forecast: 2014 After a sluggish 2013, the construction industry could see a gradual uptick in total construction starts in 2014, according the McGraw Hill Construction's 2014 Dodge Construction Outlook. Total construction starts next year could rise by 9%, to $555 billion, led by a solid housing market and improved opportunities in commercial building, it forecasts. Non-building sectors, especially electrical utilities, could be a drag on starts in the coming years."It's another step along the road to recovery, but on the painful-to-frustrating side at times," says Robert Murray, vice president of economic affairs at McGraw Hill Construction. The forecast was
The 7.2 maginitude earthquake Philippines damaged several churches that are considered heritage sites. Central Philippines Hit By 7.2-magnitude EarthquakeA massive earthquake struck the central Philippines on October 15. The magnitude-7.2 quake was centered under the island of Bohol, where most of the damage occurred; however, the neighboring island of Cebu also reported heavy damage. At press time, authorities were attributing up to 93 deaths to the earthquake. Among the structural damage were several churches that are considered heritage sites. The quake damaged Cebu's largest hospital, mall and public market.Economist With Ties to Housing Stats Shares Nobel Prize Three American economists
No less a tribunal than the U.S. Supreme Court will try to clarify construction-industry conflict about where lawsuits between primes and subs are tried. Lower courts have disagreed about what to do, but the prevailing industry wisdom is that it is best to try prime-sub disputes near the project location. Yet some primes insist subs sign "forum selection" clauses, which require trials in the prime's home state—and subs continue to cave in and sign them. Neither action speaks well for the state of risk-management in the construction industry. Despite the forum-selection clauses, many subs will sue locally for money they
Dodge Momentum Index increases 2.9% in SeptemberThe Dodge Momentum Index, compiled by McGraw Hill Construction, increased 2.9% in September and is up 31% since the end of 2012. The index is a monthly measure of the first, or initial, reports for non-residential building projects in planning, which is a proven leading indicator of construction activity by a full year. "The acceleration of the index suggests that, as of September, owners and developers viewed the environment for construction as improving," says MHC. But all the gain comes from private commercial building, which was up 8.5%. Institutional building was down 2.5%.CH2M Hill
Construction Starts Up 1% Over 2012Through August, the total dollar value of new construction starts was estimated at $329.4 billion, which was just 1% higher than the same period a year ago, according to the Dodge division of McGraw Hill Construction. The increase all came from a 27% hike in the value of residential construction. The non-residential building market was down 3% from the first eight months of 2012, while non-building work was down 21% for the same period. "A more solid expansion requires a greater contribution from non-residential building," says Robert Murray, MHC's chief economist. Colorado DOT Waits for
Photo Courtesy of Crowley/Titan U.S. and Italian Specialists Team Up to Right Sunken Cruise ShipWith the parbuckling of the largest passenger ship ever conducted, U.S.-based Titan Salvage Co. and Italian underwater specialty contractor Micoperi in mid-September successfully righted the Costa Concordia cruise ship from its capsized position off the Italian island of Giglio, where it had run aground in 2012. According to the project's website, the contractors used a system of strand jacks and cables to rotate the stricken vessel an estimated 65° and place it onto a series of six undersea platforms, built upon 2-meter-dia pile foundations. After its
Photo courtesy of Colo. DoT Highway 34 in the Big Thompson Canyon west of Loveland, Colo., will be closed "indefinitely." Photo courtesy of Colo. DoT The heavy rains pushed rivers and streams above their historic flood levels and washed out highways, like State Highway 72 in Coal Creek Canyon west of Denver. Heavy rains continued pelting Colorado through the weekend, slowing the state's efforts to fortify regions hit by “biblical floods” that struck the state early last week.By some counts, officials said, about 700 residents who live near the foothills where the flooding hit, and across the Denver metro area,
Related Links: The National Association of Insurance Commissioners Surety Fraud Probe Raises Question: Who is Melde Rutledge? State-level public works face different challenges than do larger federal public works when it comes to performing due diligence against surety-bond fraud. For federal contracts, prime contractors can require subcontractor bonds from Treasury-listed or A.M. Best-rated sureties and check the surety in a federal public database, which helps. State and local public works don't require the federal level of scrutiny,and contracts between primes and subs are private, so due diligence mostly involves meetings and financial record reviews.If a concerned contractor wants to search
Housing Keeps Construction Starts Above 2012's Level The strong rebound in the housing market nudged total construction starts 1% above 2012's level. Total construction starts through the first seven months of this year totaled $281.7 billion, including $117.7 billion from a 29% increase in residential construction, according to McGraw-Hill Construction's latest Dodge starts data. The overall market continues to be dampened by year-to-year declines of 3% for non-residential buildings starts and a drop of 22% in non-building starts, including highways.Cost Overruns and Delays Threaten $4.13-Billion Project According to an internal report made public by the Washington State Dept. of Transportation,
Construction Backlogs Are IncreasingThe Construction Backlog Indicator published by the Associated Builders & Contractors, Arlington, Va., for the second quarter of 2013 shows backlogs increasing 3.9% during the second quarter. Backlogs now stand at 8.2 months, up from 7.9 months for the first quarter. This uptick is a marked improvement over a low of 5.8 months, recorded during the fourth quarter of 2009.The ABC's backlog indicator is up 6.6% from the second quarter of 2012. The CBI reflects the amount of commercial and industrial construction work under contract but not yet completed. "The CBI indicates a growing sense of confidence
