Associated Builders and Contractors (ABC) reports that its Construction Backlog Indicator (CBI) remained unchanged at 8 months from the third quarter through the fourth quarter of 2012; however, it is up 2.4 percent compared to a year ago. CBI is measured in months and reflects the amount of construction work under contract, but not yet completed by nonresidential contractors.
“As with the broader economic recovery, the rebound of the nation’s nonresidential construction industry remains sporadic and stymied by a myriad factors, including tight credit, heightened caution among private developers and public policymakers, and a still struggling global economy,” stated ABC Chief Economist Anirban Basu.
“Because a growing number of projects are now in various stages of planning, the expectation is that backlog will expand moderately later in 2013, but construction volumes will be roughly flat for the balance of the year,” Basu said.
“Certain nonresidential construction segments, such as energy generation, infrastructure, retail and lodging, appear to be doing well,” remarked Basu. “But, this activity alone is not enough to counter the poor performance of other construction sectors, and is unable to expand rapidly in the absence of a dynamic economic recovery.

Four safety leadership training groups within Skanska recently challenged one another to fill a bin with toiletries to benefit Skanska’s neighbor James W. Ray Orion Center for Youth.

The Orion Center is part of YouthCare, which provides shelter/housing, outreach, basic needs, education and employment training for homeless youth.

The friendly competition resulted in two carloads of toiletries for the nonprofit. Way to go Skanska!

The old adage is that contractors are slow to adapt to new technology. That may have held true in the past, but go to any job site now and you’re likely to see iPads and other mobile devices hard at work.

Just how these devices speed productivity is the subject of two articles in the DJC’s Construction & Equipment special section. In one article, Skanska discusses how it’s moving toward a paperless job site. In the second, Howard S. Wright profiles its high-tech “Big Room” that is outfitted with various high-tech devices to streamline collaboration and communication between all of the project team members.

Even with all those high-tech gizmos in the Big Room, HSW still designed in a glass wall for posting sticky notes.

Legislation to reauthorize and revise the State’s alternative public works contracting procedures has been passed by both the House and Senate and awaits the Governor’s signature, which is expected.

The bill (ESHB 1466) is necessary as the law authorizing the use of GCCM, Design-Build (DB) and Job Order Contracting (JOC) on certain public projects is set to sunset at the end of June, 2013.  This bill reauthorizes the statute for eight more years while making a few tweaks.

Even though the bill had broad support in the Legislature, industry groups had to work hard to ensure that the popular measure did not become a vehicle for amendments that would have endangered its path to enactment.  The bill ultimately passed without controversial changes.

The bill was endorsed unanimously by members of the Capital Projects Advisory Review Board (CPARB), the body that advises the State on alternative public contracting issues.  CPARB had been working on the legislation for months. Its Reauthorization Task Force gathered input and made recommendations on any changes.  All of the changes included in ESHB 1466 were unanimously approved by CPARB.

Changes include:

• Allows certified public bodies to use GCCM on any size project without going to CPARB’s Project Review Committee (PRC) for approval, and DB on no more than five projects between $2 million and $10 million during the certification period.
• Changes the number of DB projects between $2 million and $10 million that the PRC may approve from 10 to 15 projects, and requires the PRC to report annually to CPARB on these projects and recommendations for further use.
• Increases the maximum total dollar amount that may be awarded through JOCs in counties with a population of more than 1 million to $6 million.

The Legislature is working on a new 2013-2015 State Capital Budget passed that will positively affect every segment of the construction industry.  Current proposals include hundreds of projects like Edmonds’ fishing pier renovation, Yakima’s Toppenish family housing project, Enumclaw’s water system replacements and Kent’s SE 256h St. widening.

Currently there are competing House and Senate versions, but the total funding in each is not far apart:  The House plan, coming in at $3.6 billion is about $130 million more than the Senate version.

To check out the list of projects that are being considered in the two plans, click House Capital Budget proposal and Senate Capital Budget proposal.

It’s crunch time in Olympia as the Legislature is taking action on many fronts that will impact funding for all types of construction. Today’s focus is the Public Works Trust Fund.

A proposal in the State Senate would PERMANENTLY redirect existing funding sources out of the PWTF — endangering dozens of infrastructure projects such as water, sewer, stormwater and some local roads and bridges.

The PWTF provides grants and low-interest loans to local governments for public works projects – many that could not otherwise be financed and built by small communities themselves. Dozens of proposed construction projects — such as the City of Port Orchard Marina Pump Station, City of Omak Sewer System Improvements, and the City of Washougal Stormwater Decant Facility — are in danger should the Legislature adopt a proposal that would gut the Public Works Trust Fund.

In addition to loan repayments—at interest rates ranging from 0.25 to 2 percent per year—the PWTF receives revenue from four state tax sources related to the types of infrastructure aided by the fund: 6.1 percent of the revenue from the real estate excise tax, 20 percent of the revenue from the water utility excise tax, 60 percent of sewerage collection tax revenues, and all the revenue from the state tax on solid waste service.

The State Senate’s budget plan would redirect all of the tax streams — except for two percent of the real estate excise tax — away from the public works trust fund and into other government accounts.

PWTF projects facilitate private economic growth and provide jobs for the hard-hit construction industry which, in turn, supports jobs in industries from material supply to food service and a variety of small businesses. Plus, many of the projects funded by the PWTF protect the environment and improve the quality of life in the state.

Urge your Senator NOT to redirect funding out of the Public Works Trust Fund!

As construction activity continues to rebound, staying focused on workplace safety and preventing injuries is more important than ever. Construction industry workers, owners and supervisors have an opportunity to focus on industry-specific training at the sixth annual Construction Safety Day, on Wednesday, May 8. This year’s event will be held from 7 a.m. to 3:45 p.m. at the Puyallup Fairgrounds Pavilion.

Construction Safety Day is co-sponsored by the Governor’s Industrial Safety and Health Advisory Board and the Department of Labor & Industries to promote safety in the construction industry. Despite improvements in equipment and training, construction remains a hazardous occupation. Last year, eight workers died in Washington State due to construction-related accidents. Many more were seriously injured.

In addition to demonstrations on cranes, job-site equipment and tools, an exhibit hall, and health and wellness booth, this year’s Construction Safety Day will have workshops for workers, owners and supervisors on:

· LEAN for construction

· Communication and leadership for safety

· Safety rule update, including the newly revised Fall-Protection rule

· Accident Prevention Plan (APP)

· Aerial lift and reach truck safety

· Scaffolding

See the Registration Brochure for more information about the workshops. Registration is $55 in advance or $65 at the door. There is a $10 per person discount for groups of five or more. Visit www.regonline.com/wagovconf-csd to register online.

For more information, send an e-mail to GovSafetyConf@Lni.wa.gov or call 360.902.5446.

During the Legislature’s current budget battles, two significant proposals have been released that include raids on the State’s Public Works Trust Fund (Gov. Inslee’s budget proposal and SB 5895, just-introduced education funding bill).

Raiding this trust fund is counterproductive to any jobs agenda. How so?  The Public Works Trust Fund (PWTF) is one of the most important sources of infrastructure funding for local governments and special purpose districts in Washington State. The PWTF is a revolving loan fund that provides low-interest loans for basic infrastructure projects like water, wastewater, stormwater, and roads – the foundation for homes and businesses in our growing communities.

State investment in basic infrastructure is a strong and necessary foundation for economic growth, and the construction industry has yet to fully recover from the recession.  The mission of the PWTF is a vital part of the state’s overall economic-development strategy. According to the Department of Revenue, every dollar invested by the PWTF in basic infrastructure yields an additional $3.60 in statewide economic activity. The more than $2 billion total investment by the PWTF has generated $10.7 billion in gross construction-related economic activity.

These projects mean jobs because they help facilitate private economic growth and they provide construction work.  Keep in mind that for each $1 million invested in construction, an additional 16 jobs are created, not just in construction but also through “spin off” effects on material suppliers, retailers, etc.

There’s still time to head this off, but those who are concerned about raids on these infrastructure investments should let their legislators know how they feel right away.

The UW’s Pacific NW Center for Construction Research and Education is hosting its semi-annual Construction Industry Research Conference on Friday, April 19 fro 11:30 am-4:00 pm at their Magnusson Park facility at Sand Point. I went last time and plan to attend this one, too. While we are all busier than we really want to be, sometimes it is worth it to stop and look up. We need to work on what’s in front of us (bid’s due Tuesday!) but also to see what’s come at us and we can’t do that unless we look up every once in a while.
This half-day event will include a panel discussion on three UW-industry partnership research projects, and a research expo on topics such as pre-fab modularization, BIM, sustainable design, transportation design-build, life cycle costs of solar in schools, and technology in safety. There will be ample time for networking with others in the industry and UW construction faculty and construction management students.
It’s only $100 and a few hours on a Friday afternoon when you are too tired to start a new project anyway. As an industry leader, you have to look ahead. We are fortunate to have the Center for Construction Research at the UW and it deserves industry support. Hope to see you there!
To register, go to http://engage.washington.edu/site/Calendar?id=109362&view=Detail.

Last week’s brazen yet ultimately unsuccessful attempt by thieves to yank copper wire out of ten street lights along a busy Olympia highway — causing $5000 worth of damage — was one more reminder that metal theft continues to be a significant problem for contractors, utilities, government agencies and others.  According to insurance industry data, 25,000 insurance claims due to metal theft were filed in 2012 alone.

To combat metal theft Rep. Roger Goodman of Kirkland introduced ESHB 1552.  Goodman leads an informal Metal Theft Work Group composed of scrap industry, law enforcement, utility representatives and other stakeholders, and this bill is based on the group’s recommendations.

Goodman says that we’ve tried criminal penalties, but the problem has gotten worse, and that the market is insufficiently regulated.

The bill:

• Creates a scrap metal license for scrap metal businesses.
• Expands criminal penalties for metal theft and malicious mischief.
• Allows for civil forfeiture for any property used in the commission of a crime involving the theft, trafficking, or unlawful possession of commercial metal property.
• Creates a database by which scrap metal businesses may determine if a potential customer has a criminal conviction which makes him or her ineligible to sell property to a licensed business.
• Establishes a grant program to support special law enforcement emphasis targeting metal theft.

The bill passed the House and awaits further action in the State Senate.

Do you have a metal theft “horror story” to share from your jobsite?  Talk about it in a comment; I’ll make sure Rep. Goodman hears about it as further evidence of the need for his bill.