The forecast shrinks the anticipated decline in 2009 construction starts to 15% from an earlier estimate of 20% or more. This is fueled by weak residential and commercial markets and the “emerging loss of momentum for institutional building,” according to the report. Projections say the American Recovery and Reinvestment Act of 2009 will hike public works project starts by 10%, “enough to cushion what was shaping up to be a particularly tough year for construction,” says the report by MHC, publisher of ENR. “The public works jump-start will be the saving grace for the year,” says Robert A. Murray, MHC
As the $787.2-billion American Recovery and Reinvestment Act (ARRA) nears its two-month mark, federal agencies are picking up the pace in parceling out the measure’s estimated $130 billion for construction-related projects. The flow of funds, however, has been uneven. The Dept. of Transportation is in the fore-front obligating $4.7 billion in stimulus aid as of March 31. Most of that has gone to state highway agencies, which have begun to commit money and award construction contracts for specific projects. But other agencies, including the Dept. of Veterans Affairs and General Services Administration, only recently released lists of projects that they
The Dept. of Veterans Affairs has released its list of about 1,000 projects, totaling nearly $1.3 billion, that it plans to carry out using funds from the American Recovery and Reinvestment Act. The vast majority of the projects on VA's list, dated April 2 and 3, are small, with many of them pegged at less than $1 million each. Under the economic-stimulus statute, the VA funds are available until Sept. 30, 2010. The projects are in three categories, the largest of which is $1.086 billion for 965 "non-recurring maintenance" and energy-related projects at VA facilities around the country. Energy-related projects,
Tough economic times around the world are taking a toll on global construction spending. Back-to-back annual declines have been reported for the first time in two decades, according to results of an annual survey of 69 construction markets. In its 2009 global construction outlook, IHS Global Insight Construction Services, Lexington, Mass., projects a 3.7% decline in total global spending this year, to $5.6 trillion. This dip would come on top of a 1.2% drop in 2008. The combined figures represent “the steepest decline in global construction spending in at least 20 years,” says Scott Hazelton, the research firm’s director of
The U.S. military’s engineering branches are having a tough time shaping construction spending for fiscal 2010. At a March 26 conference of the Society of American Military Engineers in Arlington, Va., J. Joseph Tyler, director of military programs for the Army Corps of Engineers, said he expects the agency’s $18-billion program for 2009 to be reduced to under $10 billion in 2010. As 2010 plans take shape, the Dept. of Defense is being pressed to push out nearly $5.9 billion in projects approved under the American Recovery and Reinvestment Act. When this stimulus funding is included, the Corps’ 2009 program
The U.S. General Services Administration has added its list to the growing stream of projects expected to hit the market under the American Recovery and Reinvestment Act, also known as the stimulus package. The list represents $5.55 billion in total spending with $4.5 billion dedicated to converting federal facilities to high-performance green buildings. The list includes hundreds of projects in all 50 states, the District of Columbia and two U.S. territories. Photo: GSA The Herbert Hoover Building modernization project in Washington, D.C., will receive $225.6 million in stimulus funding for two of its eight phases. The complete list can be
Construction interests in Venezuela are watching with concern as the country struggles to recast its budget to handle new economic pressures brought on by a precipitous fall in the price of oil in the past year. More than 90% of Venezuela’s export revenue comes from oil. But petroleum prices have plummeted more than 50% in the past nine months, triggering a dramatic budget shortfall in South America’s leading oil-producing country. In a nationally televised announcement on March 21, Venezuela President Hugo Chavez unveiled a package of austerity measures and tax hikes to handle the growing economic pressures. Photo: Odebrecht Contractors
More economic-stimulus funds will be on their way to states and localities from the Dept. of Energy under a block-grant program established by the American Reinvestment and Recovery Act. DOE announced March 26 it is providing $3.2 billion to states, localities and tribes through the new Energy Efficiency and Conservation Block Grant program. Funds can be used for a wide range of energy-efficiency activities. Construction-related applications include: upgrades and energy audits for residential and commercial buildings; installing renewable-energy systems on state or local government buildings; developing and implementing building codes and inspections; and setting up financial incentives for energy-conservation upgrades.
As Venezuela’s government has undertaken the difficult task of recasting its budget to handle the new economic pressures — notably the precipitous fall in oil prices — construction interests are watching the developments with concern. In a nationally-televised announcement last Saturday, Venezuelan president Hugo Chavez unveiled a new initiative of austerity measures and tax hikes to meet the country’s growing budget shortfall. More than 90 percent of Venezuela’s export revenue comes from oil whose prices have plummeted more than 50% in the past nine months. Photo: Odebrecht The so-called “third bridge” over the Orinoco River in Venezuela being built by
With $5.9 billion in stimulus package money ready to go, the Dept. of Defense unveiled an expenditure plan that adds up to big opportunities for small contractors. The DOD plan, which was released to Congress on March 20, outlines nearly 3,000 projects that cover a broad mix of new construction, renovations and facility upgrades at sites in all 50 states, the District of Columbia, Guam and Puerto Rico. The plan includes $2.3 billion in work under the military construction program, with the vast majority dedicated to projects under $10 million. The plan focuses on family housing, troop housing and quality-of-life
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