Two construction companies, a designer and a contractor with major footholds in South Africa, take somewhat different views of the country’s market prospects in these tougher economic times. Photo: Mott MacDonald Mott MacDonald, which designed the innovative roof of South Africa’s Mbombela soccer stadium, site of the World Cup in June, is bullish about regional growth. U.K.-based Mott MacDonald Group, London, accelerated its upward trajectory in South Africa last month by announcing its acquisition of the Johannesburg-based power-sector designer Merz and McLellan Pty. Ltd. The 45-person firm, with offices in South Africa and Botswana, has been a player in the
The federal government plans to use a small army of newly trained agents to audit 6,000 companies in a nationwide crackdown on misclassification of independent contractors by employers. Construction firms could be hit hard by the enforcement actions and regulatory changes contemplated by federal and state governments desperate for funds to close budget deficits. The Obama administration has tasked the Dept. of Labor and the Internal Revenue Service with increasing enforcement this year and is calling for additional resources in the 2011 federal budget. Last year, the Dept. of Labor added 250 new investigators hired within its Wage & Hour
In a unanimous decision, the Mississippi Supreme Court ruled on Feb. 11 that contractors are covered under their commercial general-liability policies for subcontractor work later found to be defective, adding momentum to a national battle being fought over whether insurers are actually providing coverage defined and paid for in those policies. The ruling has national implications “because the policies being written and enforced throughout the U.S. are identical to the policies the Mississippi court has addressed,” says Mike Kennedy, general counsel of the Associated General Contractors. “The court made it clear that insurance carriers should be held to the terms
A $1-billion bonding bill set to fund university and public-works projects in Minnesota is now on its way to Gov. Tim Pawlenty (R). The House approved the the measure on Feb. 15, several days after the Senate version passed. The governor has threatened to veto unless the reconciled measure is reduced by the time it reaches his desk. Dave Semerad, CEO of the Associated General Contractors of Minnesota, says the funding would provide a much needed boost to the state’s construction market, just in time for the winter thaw. A separate bill sponsored by the Building Jobs Coalition also passed
In the American Recovery and Reinvestment Act’s first year on the books, its billions of construction dollars have been a lifeline for an industry battered by a long economic slump. Firms that snagged ARRA-funded contracts have been able to keep workers or add to workforces. Even so, construction has a jobless rate of nearly 25%. As companies chase ARRA projects, they’re looking for more help from Congress. But neither a jobs bill nor transportation authorization is a sure thing. Illustration by Rafael Ricoy Related Links: Transport Sector Sets Rapid Pace Electricity Programs See Work Start to Surge Water, Cleanup Sectors
President Obama has proposed a $3.8-trillion budget for fiscal year 2011 that would freeze total “non-security” domestic discretionary spending—the category that includes most federal construction programs—and result in cutbacks in most of the key construction accounts. Industry sources say the proposed reductions are not surprising given current economic realities, and they point to a few bright areas in the budget’s long list of cuts. Slide Show DOT: Federal-aid highway obligation The DOT program funding highway projects was one of the few programs to receive a modest boost. Industry sources such as the American Road and Transportation Builders Association say the
Tight credit, a glut of inventory and a sluggish economy overshadowed the early hours of this year’s World of Concrete show in Las Vegas, which opened on Feb. 2. Although official registration numbers were not available at press time, attendance throughout the week was expected to drop slightly from last year’s roughly 65,000 attendees. Exhibitors noticeably trimmed down their booth space yet were in aggressive selling form, hopeful they would post small revenue gains this year. Showgoers said they expected federal stimulus, leftover from 2009’s package, to prop up public works during the second half of 2010 but felt the
President Obama has proposed a $3.8-trillion budget for fiscal year 2011 that would freeze total "non-security" domestic discretionary spending--the category that includes most federal construction programs--and result in cutbacks in most of the key construction accounts. Photo: White House Obama, with OMB Director Peter Orszag (left) and deputy director Rob Nabors, seeks freeze in "non-security" spending Obama's proposal, transmitted to Congress on Feb. 1, does recommend boosting a few construction programs, including the federal-aid highway obligation ceiling. It also proposes a new, $4-billion "National Infrastructure Innovation and Finance Fund," for transportation projects "of regional and national significance." Administration officials have
+ Image Source: McGraw-Hill Construction Analytics. Construction Contract Value Cumulative Year-To-Date Through December 2009. McGraw-Hill Construction Starts It’s “official”: 2009 was a really bad year. The dollar value of new construction starts last year fell 26%, according to McGraw-Hill Construction’s December data. This follows annual declines of 13% in 2008 and 7% in 2007. Adding a new twist to the downward cycle was a 33% decline in the non-residential building market, which was even deeper than the 31% decline registered by the home building market. Despite a massive influx of stimulus spending, the non-building market finished last year 9% below
When President Obama sends his 2011 budget plan to Capitol Hill, he will propose freezing non-defense discretionary spending—which includes most construction programs—at 2010’s level for the next three years. Construction executives hope Obama will keep some infrastructure line items unscathed or maybe even recommend some hikes. But the final numbers are up to Congress and won’t emerge until after months of partisan, election-year budget battling. Complicating the picture further, Democrats have seen their razor-thin, filibuster-proof 60-vote majority slip to a vulnerable 59 votes with Republican Scott Brown’s win in the Jan. 19 Massachusetts Senate race. + Image On the Board:
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