Two teams, one led by Fluor Corp. and the other with CH2M Hill Cos. Ltd. as a partner, were competitively awarded huge task orders on July 8 by the U.S. Army to provide construction, operations and other logistical support to troops in Afghanistan. The awards, made under the teams’ existing Logistics Civil Augmentation Program (LOGCAP) IV contracts, could total more than $13 billion over the next five years. KBR Inc., a third LOGCAP IV contractor that vied for the task-order work, was not selected. Photo: U.S. Army Work covers construction, troop logistics. Under the awards by the Army Sustainment Command
A construction team led by Spanish contractor Sacyr Vallehermoso SA has won the Panama Canal expansion’s largest contract to date, the design-build job to build a third set of locks on both the waterway’s Atlantic and Pacific openings. Photo: ACP Current Panama Canal facilities are a tight fit for ships. Related Links: Panama Widens Horizons Ten Minutes with CH2M Hill’s Mike Kennedy The team, which includes two U.S. engineers, proposes to construct the locks, a job estimated by owner Panama Canal Authority (ACP) to cost $3.48 billion, for $3.12 billion, ACP said on July 8. � ACP says that the
A move by a Hawaii Democratic congressman to insert labor provisions into the House version of the 2010 military spending bill that would affect Guam's multibillion-dollar troop redeployment facility expansion program is raising concern among U.S. officials and potential contractors about big cost impacts. Photo: CDM DOD-funded projects would pay Hawaii wage rates. The bill, enacted late last month, includes language added by Rep. Neil Abercrombie, a member of the House Armed Services Committee. It would require contractors involved in the estimated $15-billion Guam military facility expansion to pay construction workers prevailing wages equivalent to those paid in Hawaii, and
Looking to expand its stake in the expanding U.S. and global water-resources market, Dutch engineering giant ARCADIS NV will acquire one of the sector’s few remaining midsize players, 114-year-old Malcolm Pirnie Inc. The White Plains, N.Y., engineer would become a wholly owned subsidiary of ARCADIS’ Denver-based U.S. arm, adding 1,700 employees and $392 million in 2008 revenue to its $2-billion-plus parent’s girth. ARCADIS, based in Arnhem, the Netherlands, said on June 25 it will finance the transaction with a combination of stock and $135 million in cash. The purchase price was not disclosed, but the deal is set to close
A 32-year veteran of Parsons Brinckerhoff Inc., one of the industry�s oldest and most prestigious firms, Hawksworth was named CEO in January, 2008, succeeding Thomas J. O�Neill. ENR business editors Debra K. Rubin and Richard Korman sat down recently with Hawksworth in PB�s Manhattan headquarters and talked about how the engineer and program manager is reorganizing and restrategizing. Among the topics covered: a recent merger deal PB seriously considered; the company�s push for improved marketing; the ramifications of the financial crisis and the legacy of the Big Dig. Keith J. Hawksworth Related Links: Video: Parsons Brinckerhoff’s Future O'Neill Sheds CEO
Reports of solid profits and prospects by some of the construction industry’s largest publicly traded power, environmental and infrastructure giants had to be music to Wall Street’s ears. The good news was delivered at Credit Suisse’s engineering and construction conference, held on June 4 in New York City. Fluor Corp. has a strong balance sheet and $2.3 billion in cash, Vice President Kenneth Lockwood told analysts and investors. “We think we’re doing well in a challenging environment,” he said. The firm reported $5.5 billion in first-quarter project awards, a $29.1-billion backlog and very little debt. Lockwood is optimistic about winning
Even as the Obama administration looks to pump more stimulus money into the marketplace, contractors are pointing to challenges of turning existing funds into new or saved jobs. Firms report some stimulus progress in stabilizing their workforce, but nonresidential construction job losses won’t end in 2009. While construction job losses slowed last month to 59,000, industry unemployment is now at 19.2%, compared to 9.4% overall in the U.S., says Ken Simonson, Associated General Contractors’ chief economist. “Homebuilding has hit bottom, but nonresidential still has a ways to fall,” he adds. Simonson points to “ominous signs,” such as architect-engineer employment, down
In an effort to jump start building projects in New York City and put idle union construction workers back on the job, the leaders of more than 40 different building trades and union employer groups announced on May 29 what they termed a “historic compact” to cut wages of both labor and management and end expensive work rules. Proponents claim the citywide project-labor agreement will cut costs by as much as 21% on the first 12 high-rise and other commercial projects that it covers, representing $2 billion of construction and 10,000 jobs. But some are less enthusiastic about the cost
Contractors are feeling the impact of the changing economy, but many are failing to prepare for what may not be just a normal recession, according to industry management consultant FMI Corp. in a new report. In its survey conducted in February of 230 executives of U.S. construction firms in various revenue categories and market segments, Raleigh, N.C.-based FMI says respondents anticipate much uncertainty ahead. Three-quarters of respondents foresee workforce cuts, and 77% expect profits to drop. While 74% of firms have boosted business development in the last six months, only 56% are formally evaluating their capabilities and constraints and only
Five contractors have submitted proposals to build the $523-million National Bio- and Agro-Defense Facility at Kansas State University in Manhattan, project sources confirm. Construction of the megalab, to be the center of U.S. anti-bioterror and agricultural defense research, is being managed by the U.S. Dept. of Homeland Security. It will replace the 50-plus-year-old Plum Island Animal Disease Center in New York state and is being designed by a Perkins & Will-led team. DHS would not disclose details of the ongoing procurement, but according to company executives, those who submitted proposals earlier this month to build the facility include: a joint
