Even with many sealed lips about project fates, evidence of the credit crunch can be vividly seen in stilled excavations and incomplete, mothballed commercial and residential structures from New York City to San Francisco. Developers in New York City alone have stopped construction on at least 30 sites, says the buildings department, while the local Building Trades Employers’ Association (BTEA) reports nearly $5 billion of delayed or stalled projects. Slide Show Tempe work stopped in 2008. Photo: The Firm PR. Work on Vegas twin-tower resort-casino halted. Construction also is slow on the West Coast. In California, the dollar value of
The impact of a sudden shift from record high demand last summer to cancelled projects, depressed markets and falling materials and labor costs this spring has spurred a once-in-a-generation poker game of renegotiation on projects across the country. Related Links: Inflation Reverses Course As Recession Floors Prices Labor Deals with Uncertainties Finding Cost Data on the Internet What Drives ENR’s Cost Indexes How To Use ENR’s Cost Indexes View Complete Report with Data and Analysis While many in the industry are reluctant to discuss the trend for attribution, industry sources say the temptation for owners to renegotiate pricing is widespread.
Jim Kunz, business manager for operating engineers’ union Local 66 in Pittsburgh, has reason to believe the recession will not hit his city as hard as others. So far, only 400 of the 5,200 members of his local actively pursuing work are out of a job. And Pittsburgh overall may have reason to share his optimism, long ago having diversified its business base and also learning to live with and recover from the decline of its steel industry. Photo: Jim Judkis / ENR Business agent Kunz says relatively few of his members are not working and there is cause for
When the financial crisis originally struck in the United States in 2007, the initial effect in Latin America was muted. That changed last year as the dramatic drop in purchases pounded commodity prices — the backbone of most Latin economies. Moreover, as investors began seeking safe havens the availability of funding shrank as well. Photo: C.J. Schexnayder Sao Paulo's Rodoanel Mario Covas, a 170-km loop encircling Brazil's largest city, is one of the key infrastructure projects officials hope will bolster the country's flagging economy. As a result, since late last year, countries across South America have launched a variety of
Las Vegas is delaying a planned $890-million convention-center upgrade amid falling visitor numbers and reduced gaming receipts. The Las Vegas Convention and Visitors Authority expects a 21.8% drop in room tax revenue for fiscal 2009, prompting construction plans to be shelved until mid-2010. LVCVA will pay up to $5 million annually to service the project’s existing debt. About $140 million has been committed toward construction thus far, of which 68.5% is being financed. The project was scheduled to finish in 2011. In February 2006, MWH Global Inc., Broomfield, Colo., with HNTB, Kansas City, Mo., was awarded a four-year, $45-million contract
President Obama has signed a $410-billion spending measure that will carry many federal agencies through the end of fiscal year 2009. The legislation, which Obama signed March 11, funds most of the major federal construction programs, increasing spending for some accounts from 2008 levels, but trimming funding for others. The appropriations bill moved quickly through the House, but had a bumpy path in the Senate, as critics complained about the overall size of the measure and its estimated $7.7 billion billion in "earmarks," specifying funds for individual projects or activities. With such criticism in the air, Obama and House Democratic
President Obama has signed a stopgap funding bill that will keep federal agencies running through March 11. The continuing resolution, which Obama signed on March 6, was necessary because most of the agencies were operating under an earlier "CR" that expired on that date. The House on Feb. 25 had passed a $410-billion appropriations package that would fund those agencies through Sept. 30, the end of the 2009 fiscal year, but things bogged down in the Senate. The developments affect most of the federal departments and agencies, including many that oversee important construction programs, such as the Transportation, Energy and
The U.S. Dept. of Transportation has released $27.5 billion in highway aid contained in the recently enacted economic stimulus package. President Obama announced DOT’s action on March 3, one day after the Federal Highway Administration formally apportioned $26.66 billion of the highway stimulus funds among the states. FHWA’s apportionment came eight days earlier than the deadline set by the stimulus measure, the American Recovery and Reinvestment Act. The first contract—$2.1 million—was awarded to American Infrastructure, Worcester, Pa., to grind, patch and resurface a 1.1-mile section of Route 650 in Silver Spring, Md. State highway departments say they have identified more
President Obama’s ambitious $3.55-trillion budget outline for fiscal year 2010 is the latest salvo in his administration’s efforts to revive and reshape the nation’s economy. The proposed budget blueprint, unveiled Feb. 26, aims to cut the federal deficit in half by 2013 but doesn’t slash construction accounts to reach that g oal. Instead, it would boost funding for water infrastructure and create a National Infrastructure Bank. Photo: AP/Wideworld OMB’s Orszag (left) delivers plan to Rep. John Spratt (center) and Sen. Kent Conrad Meanwhile, Congress still needs to approve final spending numbers for fiscal 2009. Lawmakers approved a stopgap measure this
Two large government-owned utilities have announced that they will use some of the funding in the president’s $787-billion stimulus package to move forward with "smart grid" transmission projects. Portland, Ore.-based Bonneville Power Administration announced Feb. 19 that it would move forward with a $246-million, 500-kV transmission line that will provide more than 870 Mw of energy, including 700 Mw of wind capacity. Work on the project begins this spring and is expected at its peak to create 700 jobs. Lakewood, Colo.-based Western Area Power Administration also plans to build "smart" transmission lines, although it has not yet identified any specific
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