The cost of construction materials took a breather in April, while contractors showed slightly greater ability to roll past price increases into their bids, according to an analysis of producer price index figures released today by AGC. Association officials noted that despite the temporary reprieve from materials price hikes, market conditions for construction remain difficult.
“Contractors caught a bit of a break on major input costs in April, enabling some firms to make up for recent price spikes,” said Ken Simonson, the association’s chief economist. “However, workloads remain uneven by segment and geographical region, leaving many firms very vulnerable to unexpected price hikes for key materials.”
The 2012 Construction Hiring and Business Outlook Report generated by the The Associated General Contractors of America (AGC) indicates that the prospects for the the construction industry is mixed for 2012. According to the report, firms are balancing growing demand for some private sector market segments with continued weakness in other key private market sectors, combined with the phasing out of the stimulus package and declining public works construction.
The main findings of the AGC 2012 outlook are:
Private Sector Market Outlook Improving, Public Sector to Weaken In the private sector, power, hospital and higher education sectors are seeing increases in construction spending. However, large declines in highway and transportation infrastructure projects are expected in 2012.
Construction Employment to Improve… Slightly Thirty-two percent (32%) of firms plan to add staff this year, with only nine (9%) percent planning to lay off staff.
Tight Credit is Delaying or Canceling Many Projects
Conditions tied to lending have become more restrictive, forcing many owners to delay or cancel construction projects. Construction companies themselves have not experienced the tight bank credit conditions directly, but many have indicated that tighter lending conditions have caused their customers to delay or completely cancel construction projects.
Cautious Firms are Quicker to Lease, Instead of Buy, New Equipment
Caution against laying out large amounts of capital is a continuing trend. Firms are concerned about future revenues, and are reluctant to lay out large sums of cash for equipment without more optimistic construction forecasts.
The findings contained in the ACG 2012 Outlook is the result of click here.
The 2012 A/E/P and Environmental Consulting Industry Outlook rated power and energy as the hottest market for 2012. Close behind were healthcare, water, and highways and bridges.
The chart below provides a picture of increases and decreases in construction spending over the last year, and gives an idea of where the National trends are headed in the short term.
There are 2 types of Alabama Mechanic’s Liens – a Full Price Lien or an Unpaid Balance Lien. Those who contracted directly with the owner, or material suppliers who sent preliminary notice before delivering supplies, will have a full price lien upon filing this document. Others will have an unpaid balance lien. Whther it be a preliminary notice or a mechanic’s lien, LienItNow.com can easily help you through this process.
I recently received a request to place a mechanic’s lien against a job located on Indian property. Apparently, there has been a boom in casino construction and tribes are hiring from outside the tribe. With this rise of construction on tribal land come questions as to the rights that suppliers and contractors have. Of the many legal aspects, Sovereign Immunity is what ultimately protects the Indians from the laws of the United States as well as the laws of each individual state. What it all boils down to is that the mechanic’s lien law does not apply since the property is not state or federal land.
Before signing a contract with an Indian Tribe, I suggest reading “Construction Contracts with Indian Tribes or on Tribal Land.”written by Edward Rubacha, an attorney with Jennings, Haug, & Cunningham, LLP.
The existing provisions of Cal. Civ. Code § 2923.3, which impose the $1,000 per day fine, are set to expire on January 1, 2013. The newly-enacted law extends the operation of the law indefinitely. Click Click here for the California Homeowner Bill of Rights Anti-Blight Bill”. for the California Homeowner Bill of Rights Anti-Blight Bill”.
The Multi-Employer Pension Plan Amendments Act (MPPAA) contains certain special exceptions and considerations for the construction industry:
1) If you have an obligation to contribute to a plan in the building and construction industry, a complete withdrawal occurs when
(2) the majority of the employees for whom you are contributing work in the building and construction industry, except when
(3) the PLAN principally covers employees in the building and construction industry, but only if
(4) the construction or building company continues to work
a) in the jurisdiction of the collective bargaining agreement of the type for which contributions were previously required, or
b) resumes such work within 5 years after the date on which the obligation to contribute under the plan ceases, and does not renew the obligation at the time of the resumption.
Before withdrawing from a collective bargaining agreement, make sure you have gone through these steps to ensure that you will not be hit with an unfunded liability charge.
The law firm of Vedder Price has a detailed primer on MPPAA withdrawal liability that may of use to anyone considering pulling out of a CBA.
How do you determine when it is time to place a mechanic’s lien on a job on which you just can’t seem to collect the amount due? Do you have certain policies set? I constantly have customers ask me when they should begin the process.
Several begin the lien process immediately following the end of a job. Some send a pre-lien notice hoping that will encourage their customer to pay. Other clients send a notice of intent stating that a lien is just around the corner should they not receive payment. Others wait until two weeks before the deadline to file a lien.
At what point do you begin the mechanic’s lien process? What other tactics do you use to collect past due amounts? What policies have you set in place and why?
The Federal Center South project in Seattle, along with two other Federal buildings undergoing mechanical-system upgrades, are on a fast track. The Federal Center South project is a performance based, design-build model, which puts at risk 0.5% of the $66 million contract award. In other words, the design build team will not receive $330,000 until the building meets the energy use targets that were promised for the structure.
In order to verify that the building will hit the energy savings targets, the money will be held back for at least 12-months after occupancy. The conditions imposed by the U.S. General Services Administration Northwest/Arctic Region are the first of their kind. Sellen Construction Co. of Seattle is performing the work on the project.
According to GSA’s website: “The building is expected to attain gold certification in Leadership in Energy and Environmental Design from the U.S. Green Building Council. Among the many green features of the new building is extensive use of natural daylight, conversion of existing hardscape into low-impact sustainable green space, use of recycled timbers and other building materials, and an energy-efficient heating, ventilation and air conditioning system that uses under-floor air distribution. The project is expected to be completed by fall 2012.”