State departments of transportation have passed their first “use it or lose it” test under the American Recovery and Reinvestment Act, obligating half of their highway stimulus funds at least 10 days before the June 29 deadline set under the economic-stimulus statute. In another positive sign, the number of ARRA highway and transit project starts has climbed sharply, but critics point out that actual outlays remain small. ARRA required states to obligate—commit to specific projects—at least 50% of their highway stimulus allocations by June 29. If not, the unobligated portions would revert to U.S. DOT to be redistributed to other
Construction costs took a major hit during the second quarter, with 14 of the 15 industry cost indexes tracked by ENR declining from the previous quarter. They were some of the biggest quarter-to-quarter declines ever recorded by ENR, averaging a 1.4% decline between January and April of this year. Photo: Michael Moore / SME Steel Contractors Prices for reinforcing bar tumbled by more than half over the past year. Related Links: Razor-Thin Margins As Contractors Fight For Stimulus Projects Firms Hold the Line on Raises, But Salaries Remain Competitive Slow Payment Is Sapping Contractors Strength A Strong Market Still Has
The current recession is turning out to be severe, and Florida, with its dependence on housing, is particularly vulnerable. The most immediate help to the Florida economy will come from the federal stimulus bill. The American Recovery and Reinvestment Act of 2009 (ARRA) has a price tag estimated at $787 billion. The Florida Office of Economic Recovery estimates about $14.1 billion of these funds will flow into the state. + Image Florida's Share of Federal Stimulus Funds Most of the funds from the stimulus bill will go toward staving off education budget cuts, extending unemployment benefits and buttressing the state’s
Despite skyrocketing construction unemployment, most companies are trying to hold steady on compensation to retain existing talent and stay competitive during the recession. Although many firms are trying to keep raises in line with cost-of-living increases, others are freezing salaries. Nearly 20% of respondents to a survey conducted by construction-compensation consulting firm PAS Inc. say they would not increase salaries this year, but only 1% say they would reduce them. Related Links: Razor-Thin Margins As Contractors Fight For Stimulus Projects Costs Post Rare Quarterly Decline Slow Payment Is Sapping Contractors Strength A Strong Market Still Has High Risks Complete 2nd
On top of concerns about dwindling backlogs and an uncertain economic outlook, slow payment for work already performed is now sapping the strength of many industry firms. Across the industry, executives report pay cycles for general contractors have stretched to an average of 45 to 60 days from 30 days a year ago. Subcontractors report pay cycles in the 90-day range, roughly twice the average from a year ago. Related Links: Razor-Thin Margins As Contractors Fight For Stimulus Projects Costs Post Rare Quarterly Decline Firms Hold the Line on Raises, But Salaries Remain Competitive A Strong Market Still Has High
What a difference a year makes. In the second quarter of 2008, construction starts had moved slightly off the record-run rate of the previous three years. The economic bloodletting set off by the subprime meltdown did not really spill over into construction until the second half of the year. Photo: Tom Hale / Midwest Construction State transportation agencies plug budget holes with ARRA dollars. + Image Source: McGraw-Hill Construction Research and Analytics Related Links: Costs Post Rare Quarterly Decline Firms Hold the Line on Raises, But Salaries Remain Competitive Slow Payment Is Sapping Contractors Strength A Strong Market Still Has
Most of the U.S. construction industry may be on flat-line status, but the building pulse is still strong in Salt Lake City, Utah. More than $4 billion of large mixed-use, commercial, education and health-care projects are under construction in the metropolitian area, with others ready to start construction or go out for bid. Photo: Michael Moore / SME Steel Contractors Bidders fight for over $4 billion of nonresidential work. Related Links: Razor-Thin Margins As Contractors Fight For Stimulus Projects Costs Post Rare Quarterly Decline Firms Hold the Line on Raises, But Salaries Remain Competitive Slow Payment Is Sapping Contractors Strength
A $106-billion military funding bill that includes $4.4 billion for defense and civil construction is heading to the White House for President Obama's expected signature. Final congressional approval for the package came on June 18, when the Senate approved it by a 91-5 vote. Most of the measure's funds will go to continue the wars in Iraq and Afghanistan. Photo: Army Corps of Engineers Bill includes funds for hospital projects at Fort Belvoir, Va. Related Links: Read about the Bethesda hospital project Corps of Engineers Fort Belvoir slide show The largest share of the spending bill's construction funding is $2.7
Another lavish multibillion-dollar Las Vegas Strip resort project has suffered a recession-related setback: On June 9, the $3.1-billion Fontainebleau Las Vegas, which is about 70% complete, filed for Chapter 11 bankruptcy protection. Construction of the 63-story hotel-casino-retail complex is now halted. Photo: Luetta Callaway/ENR Mega-project’s craft workforce dropped from 3,300 to 250 in recent months. Scheduled to open in October, the project is being built by Fontainebleau Resorts LLC, an investment group led by Miami-based developer Jeffery Soffer, who also owns the famed Morris Lapidus Fontainebleau hotel in Miami Beach. It so far has invested over $2 billion in the
House and Senate negotiators have agreed on a $106-billion supplemental spending bill for fiscal 2009 that most funds the wars in Afghanistan and Iraq but also contains about $4.4 billion for defense and non-military construction, much of it in the U.S. The conference agreement, approved June 11 by House and Senate appropriators, is expected to go to the House and Senate floors during the week of June 15. The measure's construction allocations include $2.7 billion for Dept. of Defense construction, including $263 million to finish hospital projects in Bethesda, Md., and Fort Belvoir in Virginia; $488 million for other military
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