Residential and commercial construction has kicked into high gear in the last year, driving up the price of everything from lumber to labor, as the economy has begun to recover from a recession that started in 2008. For taxpayers throughout the Lowcountry, that's meant schools and a new county jail will cost millions of dollars more than was anticipated when they were initially planned. Grace Beahm/staff

Lowcountry residents will be paying millions more for a new jail and getting fewer frills in the next generation of schools because of rising construction costs rolling across the country as the economy emerges from years of recession.

Dorchester District 2, which is building three new elementary schools and a middle school with $179 million in bonds approved by voters two years ago, was surprised when bids on the first two elementaries came in around $20 million apiece. That was about a third more than originally predicted, forcing the district to cut out upgraded heating and air-conditioning systems, LED lighting, landscaping and some classroom sinks.

"We were quite shocked on bid day because the bids came in higher than expected," said Bob Folkman, Dorchester District 2's capital improvements facilitator.

Construction costs have been on the rise nationally since the housing recovery went into high gear in 2013. The improved housing market has been among the driving forces that have helped the economy emerge from the recession that began in 2008, creating more jobs for electricians, plumbers, carpenters and related manufacturers.

But the higher demand for skilled workers and building materials has driven up the price tags for some public works projects whose costs had been figured when the economy was still struggling.

Dorchester County took a hit recently when bids for its new jail came in about $5 million higher than expected. When planning started in 2012, the building was estimated to cost about $14 million, but the low bid came in at $18.8 million. County Council voted in July to increase the budget rather than try to cut corners.

"Right now everybody's coming out of the gates wanting to build, and that's driving prices up to pre-2009 levels," Folkman said. "That's a big hit on budgets that were developed in 2012."

When Folkman worked for the Pickens County School District during the recession, the opposite was true, even through last year.

"In Pickens, people were taking work just to stay in business," he said. "When I came down here, I was amazed to see how much was being built, and it's been reflected in the prices."

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Economic recovery driving up construction costs

A major redevelopment of the former Allegheny County Health Department building in Oakland has undergone big changes, with nearly all office space eliminated in favor of more apartments.

MWK Forbes LLC, the team behind the redevelopment, has ditched plans for 50,000 square feet of office space as part of the Forbes Avenue development and will add another 59 apartments instead, bringing the total number of units to 389.

Gary Wilson, one of the partners in MWK Forbes, said the team decided to drop the office space when it was unable to find anyone willing to sign on in advance of construction despite the tight Oakland office market. MWK wanted such a commitment before it got started on the work.

Tenants wont lease before the space is completed. We werent willing to be speculative on the office space, he said.

With the extra space, MWK decided to increase the number of apartments to be built as part of the project. It is partnering with Ambling University Development Group a Valdosta, Ga., firm that specializes in student housing to construct the units.

Mr. Wilson said the demand for apartments appears to be strong. Market studies indicated that the biggest audience for the units could be graduate students and others in the 22- to 30-year-old age group.

MWK is leaning toward luxury with the apartments. Plans call for a sky lounge and a terrace deck with grass, trees and planters. There also will be a fitness center, but plans for a swimming pool were dropped. Rental rates have yet to be established.

The overall redevelopment, expected to cost in excess of $50 million, also will feature a 138-room limited service hotel and a 363-space parking garage, with another 131 spaces dedicated to bicycles. Mr. Wilson said MWK is looking at an extended stay hotel, particularly given the nearby hospitals and universities in Oakland.

City planning commission members will be briefed on the project at their meeting next week.

The development they will review differs markedly from the one presented at a community meeting in Oakland last spring. At that time, MWK was proposing a 330-unit apartment building, a 50,000-square-foot office building, and a 125- to 150-room hotel, plus 5,000 square feet of retail space and parking for 400 cars.

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More apartments planned at former Allegheny County health building site in Oakland

Experts in the construction industry are being contacted by the Commission on Audit (COA) to assist its audit examiners in conducting a special audit of the parking building constructed in 2007 by the Makati City government.

Interviewed in a television morning show yesterday, COA Chairperson Grace Pulido Tan disclose that her office has already contacted experts to help the audit agency determine whether or not the city government paid more than what the 11-storey Makati City building actually costs.

The alleged overpricing of the construction of the building is now the subject of a Senate Blue Ribbon Committee probe. A plunder case has also been filed against Vice President Jejomar Binay and his son, incumbent Mayor Junjun Binay, on the same issue.

Although the disbursements have already passed regular audit, Pulido-Tan said COA has decided to take a second look through a special audit after accusers of the former and incumbent Makati mayors claimed that the city government paid for more than double the real cost of the building at P2.3 billion.

Pulido-Tan said a special audit is conducted if there are suspicions of irregularities due to observations that normal and logical processes in pursuing them have not been followed. She said the holding of the bidding for the construction contract was also suspiciously fast and completed in just two months. Had the Makati City government followed the provisions of the procurement law, she said, it would have taken local officials at least 130 days to conduct the bidding and award the contract.

NANCY SLAMS SENATE PROBE

Meanwhile, Sen. Ma. Lourdes Nancy Binay said the ongoing investigation of the Senate Blue Ribbon Committee on the Makati City Hall Building II isnt a search for truth, but a search for free publicity.

This is about media mileage for people who have intentions for 2016, Binay said in an interview after the committee hearing last Thursday.

Even after being dragged into the controversy, Binay said she is not inclined to appear at the hearing to defend herself and her family from the accusations hurled by their staunchest critics, namely Senators Antonio Trillanes IV and Senate Majority Leader Alan Peter Cayetano.

During the resumption of the Senate probe, a former Makati government official handling the citys Bids and Awards Committee (BAC) said that bidding for the edifice and other city projects were rigged to favor Hilmarcs Construction Corp. Mario Hechanova, who also headed Makati City Halls General Services Department, told the Senate investigators that this was upon the instructions given by the Vice President who was then the city mayor.

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COA asks industry experts to help in special audit of Makati building; Nancy slams Senate probe

Construction is well underway and on time for the $100 million expansion at Jackson National. The project is expanding the dining and conference facility, and adding a whole new office building.

"The conference facility's already enclosed. There's a green roof on it. It's on, the exterior walls are on, so weather delays are a minimal impact now. The main building's the steels going up, the first tower's almost complete and it's a little more sensitive to winter construction, but again they're ready for it," explained Jackson National's CEO, Mike Wells.

The new building allows the company to hire more employees, but CEO Mike Wells said it'll continue hiring while the building is constructed.

"It's not dependent on this building. But, the building will give us capacity for about another thousand here, but this year for example we'll hire an excess of 500 in Lansing," Wells said.

The finished expansion project is also encouraging growth of businesses in the area, which means even more jobs.

"A lot of the support industry that'll be here, that's a result of the investment that Jackson and other companies continue to makes - we'll continue to see that supplier base as well," said Tim Daman, President and CEO of the Lansing Regional Chamber of Commerce.

The Chamber of Commerce is pleased with Jackson's decision to expand in Lansing.

"We're topping $500 million in economic investments and these are companies that could choose to grow and invest in other parts of the country," Daman said.

Which is an endorsement for the city.

"It's a clear statement of our confidence in the market long term and I think in the people in the community long term," Wells said.

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Jackson National Expansion Endorses Lansing Area

New York, NY (PRWEB) September 04, 2014

The Commercial Building Construction industry struggled immensely during the recession. The collapse of the housing market and its subsequent strain on the financial sector set the stage for a stifled business sector with little need for new commercial space. A tightened credit market, high unemployment and low consumer spending also contributed to the industry's decline as businesses downsized or closed shop, which halted demand for new office, retail and warehouse construction. Stagnant growth in per capita disposable income also cut into demand for the hotel and recreation market. As a result, industry revenue is expected to fall over the five years to 2014.

Commercial construction typically lags behind the overall economy by one to two years, due in part to the length of construction contracts and the pipeline of projects that general contractors keep on the books. Industry revenue began to shrink in 2009 and continued through 2010. During those years, most contractors' backlogs dried up, and many operators cut prices to stay competitive, leading profit margins to narrow significantly. Additionally, strong demand from key downstream markets has caused an increase in demand for new commercial construction. While improving economic indicators are excepted to benefit the industry, the Producer Price Index states that materials for warehouse and office construction have gone up, bumping up operators fixed costs. According to IBISWorld Industry Analyst Danielle Karvess, overall improvements across the US economy will boost strong industry growth during the next five years, with the need for new construction returning as businesses expand to meet growing consumer demand. Over the five years to 2019, industry revenue is anticipated to grow.

The Commercial Building Construction industry has a low level of market share concentration, with the four largest companies holding a relatively small share of industry revenue. The largest players are multinational general contractors (GCs) with the resources and staff to handle massive, lucrative contracts for state-of-the-art structures like super skyscrapers and professional sports arenas. However, most participants in the industry are small-scale GCs that serve a narrow, local geographic region, Karvess says. As such, more than one-half of industry enterprises employ fewer than five people and often work as subcontractors for larger firms.

For more information, visit IBISWorlds Commercial Building Construction in the US industry report page.

Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189

IBISWorld industry Report Key Topics

The Commercial Building Construction industry includes companies that are primarily responsible for work on the construction (i.e. new work, additions, alterations, maintenance and repairs) of office, retail, hotel, agricultural and entertainment buildings. Participants are general contractors or project managers. This industry excludes institutional buildings (e.g. hospitals and schools), heavy industrial buildings (e.g. factories and power plants) or infrastructure (e.g. communications towers or oil pipelines).

Industry Performance Executive Summary Key External Drivers Current Performance Industry Outlook Industry Life Cycle Products & Markets Supply Chain Products & Services Major Markets Globalization & Trade Business Locations Competitive Landscape Market Share Concentration Key Success Factors Cost Structure Benchmarks Barriers to Entry Major Companies Operating Conditions Capital Intensity Key Statistics Industry Data Annual Change Key Ratios

About IBISWorld Inc. Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Commercial Building Construction in the US Industry Market Research Report from IBISWorld Has Been Updated

Right after Louis Laberge was elected president of the Fdration des travailleurs et travailleuses du Qubec (FTQ) in 1964, the unions headquarters moved into an office building on Mtropolitain Blvd. E. where, within months, a soon-to-be notorious figure would settle in down the hall.

Nicolo Rizzuto Sr., who became patriarch of the Montreal Mafia a decade later, incorporated Grand Royal Asphalt Paving Inc. in 1965, and listed its headquarters in room 509 of 3333 Mtropolitain E. in St-Michel.

Its unknown whether he ever crossed paths with his neighbour, Laberge, whose FTQ office was in room 500 of the same building during the years that Rizzuto had Grand Royal Asphalt Paving and other companies registered in number 509.

However, the overlapping address is just one of the links uncovered by The Gazette between a cast of characters from Quebecs union, construction and criminal worlds whose names have come up at the Charbonneau Commission this week.

Former construction magnate Tony Accurso, whose father, James, launched the Louisbourg Construction empire in the 1950s, is one of the last and most anticipated witnesses to appear before the commission, which has spent two years wading into collusion, kickbacks and dirty political financing involving Quebecs construction industry and public contracts.

Accurso testified on Tuesday that he didnt think his father had known Laberge, when asked directly by commission lawyer Sonia LeBel.

Testifying on Wednesday, Accurso identified Laberge, his mentor when he took over the family construction business following his fathers death in 1981, as a spiritual father.

And Accurso called Vito Rizzuto, who died of cancer in December, and son Nick Rizzuto Jr., who was gunned down in 2009, minor contacts. He added he never met Nicolo Sr., father of Vito, who was assassinated in 2010.

Yet Laberge, who died in 2002, and most of these individuals intersect in Montreal municipal contracts.

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Accurso details link to Rizzuto

Senators on Thursday criticized as exorbitant Makati City's P350-million allocation for the transfer of its urban planning office and data center to the allegedly overpriced P2.7-billion Makati City Hall Building 2.

The construction of the controversial office and parking complex started when Vice President Jejomar Binay was mayor of the city. He and his son, incumbent Mayor Junjun Binay, are facing plunder raps before the Ombudsman in connection with the allegedly padded construction cost.

"So, yan na po yata ang pinakamahal na paglipat ng isang opisina sa buong mundo. P350 million. Ni hindi na nga po magpapamasahe diyan eh, he added.

Lorenza Amores, head of the city's budget department, said the allocation was for the transfer of the Urban Development and Planning Department but no money has been disbursed yet.

Engineer Merlina Panganiban, urban development officer, said the amount was for the transfer of the office which was composed of many divisions. Panganiban, however, said the bulk of the amount would be for the transfer of the citys data center.

Lahat ng transaction sa Makati ay doon nanggagaling sa data center. Lahat ng connections ay nandito. Ang idea ay kailangan mong paandarin mo muna ito bago patayin ang old data center. You need to buy new equipment, yun ang dapat ilagay sa bagong data center, Panganiban said.

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Senators question Makati's P350-M budget for office relocation

A new $10 million project will bring a four-story, 50,000 square-foot office building to downtown Castle Rock.

Companies that have wanted to move into town have had problems finding contiguous space, and downtown boosters hope this will help.

Frank Gray, CEO of the Castle Rock Economic Development Council, said his organization has struggled to help companies find more than than 2,000-3,000 square feet. Companies already in town had to move out if they wanted to expand.

"This will provide a much needed jolt to Castle Rock in attracting a younger talented work force that is look for a more urban setting, where they can walk to restaurants, coffee shops and some kind of entertainment," Gray said in an e-mail.

The new building at Sixth and Jerry Streets will be called the Move. It is still in the design phase and there is no date for groundbreaking, although it will be soon, said Jill Dustman-Coe, marketing coordinator for White Construction Group.

Many Castle Rock residents work for high-tech companies in the Denver Tech Center, said Bill Detweiler, Castle Rock's director of development services. He hopes the new space will attract those high-tech companies and their younger workers.

"This building represents an opportunity to keep high-tech businesses in the town of Castle Rock and so they can expand," her said.

Detweiler said part of the financing agreement requires completion of the building a year from the date the agreement was signed, which was in April.

Council approved a loan of $900,000 for developer White Construction only when the building is finished and occupied next year. About half of the 100 or so parking spaces must be available to the public.

One company looking to expand and stay in Castle Rock is Where Food Comes From, a high-tech food verification company. CEO John Saunders said his company currently operates out of 3,500 square feet downtown and would like to expand to 5,000-10,000 square feet, adding 1015 jobs.

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The Move building adding major office space to downtown Castle Rock

Austin, TX (PRWEB) September 03, 2014

Austin construction dumpster rental company, At Your Disposal (AYD) Waste Services, Inc. has recently signed on with JE Dunn to provide dumpster rental services on site for the construction of a LEED-certified commercial office building located in Downtown Austin.

Scheduled to be a 12-month-long project, this new nine-story building will be located at 1301 San Antonio Street in Downtown Austin. AYD has just delivered one 20-yard dumpster with plans to add three to four more dumpsters in the upcoming months.

This LEED project requires sustainable solutions across all aspects of construction. As a LEED-AP certified waste management company, AYD is able to facilitate the recycling of all construction debris and will provide detailed reports to the general contractor to fulfill all LEED expectations and obligations.

LEED certified buildings have aided in reducing greenhouse gases and waste by consuming 25% less waste than their traditional counterparts, making these projects role models of social responsibility leadership. As Austin strives to decrease the amount of waste generated by new construction projects and minimize their carbon footprint, it is crucial for new projects to follow these standards and utilize the expertise of companies such as AYD.

The majority of construction projects we handle in the Austin area are LEED certified or have other requirements to fulfill the zero waste initiatives put in place by the city, said Chuck Herb, owner of AYD Waste Services. We are LEED certified and capable of working closely with contractors and everyone on the job site to minimize waste while maximizing efficiency.

About At Your Disposal (AYD) Waste Services, Inc.: At Your Disposal (AYD) Waste Services, Inc. provides recycling and refuse haling to the greater Austin, TX area. The company offers roll-off dumpster rental, waste disposal services, compactor rentals, construction debris removal, and hauling of recyclables, junk and more. AYD offers same-day service. Committed to protecting the environment, AYD is a LEED-certified waste collection company and participates in the Texas Environmental Quality Initiatives Program as well as local community beautification projects. To learn more about AYD and the services offered, please visit http://www.aydwaste.com.

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Austin Dumpster Rental Company Providing Dumpsters for LEED Construction of New Office Building Downtown

VOL. 129 | NO. 171 | Wednesday, September 03, 2014

The West Tennessee Home Builders Association has paid $4.4 million for an office building at 5400 Poplar Ave. in East Memphis that will house the organizations new headquarters.

We wanted to make a statement about our commitment to Memphis by purchasing an office within the city limits, said Kim Grant Brown, president of the association. The location is convenient for most of our members and we are looking forward to having a permanent space to call our own for years to come.

The association closed on the property Friday, Aug. 29. Holice Jeffries of Sperry Van Ness represented the association in the deal, while Shane Soefker of Cushman & Wakefield/Commercial Advisors represented the seller.

Brown said the organization is looking to move into the new space around Sept. 18, and then it will begin construction on the building to transform it into a high-quality property that will be a central location for its members to meet and work.

We want this to be a Class A property by the time we get done with our renovations, Brown said. Were going to build out our space, make some repairs and renovate the lobby, so we think its going to be a very nice property by the time we get done with it.

Brown said the association, which has been leasing a space at 7990 Trinity Road since it sold its old headquarters building at 776 Germantown Parkway four years ago, thought long and hard about where it should place its new flagship building.

It was a long labor of love, Brown said. With the recession, we decided to wait and find the perfect property and I think we found that.

The new location gives the association an asset along the most highly sought after corridor for office space in the Memphis area. Including the roughly 5,000-square-foot space for the organizations new headquarters, the 42,000-square-foot building has only 4,000 square feet of available space. Tenants include Paragon Bank, Roebuck Auctions and Borland, Heflin, Alvarez, Minor & Matthews PLC.

Its going to be a nice income-producing asset for our association, Brown said. We think it will give us some stability for the future.

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Home Builders Group Buys Building for Headquarters