Bridging the Gap Between Old and New Schools of Construction

September 16, 2019
Adam Quiñones - Construction Executive

It is undeniable that the construction industry is experiencing a period of expansion and success since the gloomy years of the great recession. This rapid growth in the volume of new construction has created unique opportunities for millennials to enter an industry in which entry-level positions are bountiful and the compensation is enticing.

However, young construction professionals are entering a workforce with one of the highest age gaps between senior-level managers and fledging graduates who are seeking life-long careers in construction. Studies show that the construction industry has surpassed all other industries in age gap from the beginning of the great recession to the present-day boom by about two years. The average age of construction professional currently sits at about 40, which means the industry is facing an era of transition where experienced project managers and superintendents are phasing out of their careers—and the void is being filled by a new generation of skilled workers.

Reprinted courtesy of Adam Quiñones, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Avoid Tax Trouble by Ensuring Construction Workers Are Correctly Classified

September 10, 2019
Gregory Seador - Construction Executive

With the recent increase in the number of federal and state task forces aimed at curbing tax fraud in the construction industry, construction companies would be wise to ensure their businesses are in compliance with the tax laws. One area in particular that has drawn increased scrutiny by federal and state tax authorities is the misclassification of construction workers as independent contractors instead of as employees of the business. Construction companies can reduce the risk of an audit and incurring costly penalties by accurately classifying its workers at the outset of the relationship.

Reprinted courtesy of Gregory Seador, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


From Duct Taping to Reinventing Construction – an Interview with Steve Holzer

September 4, 2019
Aarni Heiskanen - AEC Business

Construction tech is hot. The question is: Are the dollars are invested in contech reinventing the industry or are they merely adding patches to outdated processes? Steve Holzer, an industry expert and Product Evangelist at BIMobject, shares his views in this interview.

Steve Holzer’s LinkedIn profile details industry experience that starts from 1976 when he became the president and owner of Holzer Construction Company. Since then, he’s been on the cutting edge of AEC technology and, today, is an acknowledged tech expert and visionary.

Mr. Heiskanen may be contacted at aec-business@aepartners.fi


Eco-Friendly Mansions Can Hold Hidden Bargains for Home Buyers

August 26, 2019
James Tarmy - Bloomberg

In 2012, Dani Mouawad purchased a 1.55-acre piece of property in Chapel Hill, NC, then spent 10 months constructing a “sustainable, natural, health-promoting” house.

The building was made out of straw, clay, plaster, and lime, with a living roof made from topsoil displaced by the building’s foundation. Construction on the first of the property’s two buildings cost Mouawad, a pediatrician, “three times the cost of conventional materials,” he says, but what he spent in construction costs has more than paid off.


Drones Do Deadly Work So You Don’t Have To

August 20, 2019
Jack Pitcher - Bloomberg

Here’s a job any worker would be happy to pass off to a drone: Imagine crawling down a ladder into the vast darkness of a 20-story-high storage tank filled with toxic chemical fumes to spend hours searching for corrosion.

More than a thousand U.S. laborers have been killed working in confined spaces like that in the past decade. One of them was 43-year-old Clinton Miller, an AkzoNobel NV employee who passed out after entering a tank to retrieve a piece of trash at a North Carolina chemical plant last year. Oxygen levels were found to be just 11% inside the structure, according to a federal incident report.


The Top 50 Construction Law Firms™: Keeping a Sharp Eye on the Contract

August 13, 2019
Cybele Tamulonis - Construction Executive

With the explosion of new technologies in construction, changes to contract documents, and the growing challenge posed by an ever-increasing number of state and federal laws and regulations, contractors need expert legal advice more than ever to manage risk and protect profits.

Law firms specializing in construction have the unique industry experience essential to guide their clients through a complex maze of compliance and contracts to ensure the health of the construction enterprise.

Reprinted courtesy of Cybele Tamulonis, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


DOD Awards Border Fence Contracts, Has Plans for More

August 6, 2019
Tom Ichniowski - Engineering News-Record

About $1 billion in federal contracts have recently been awarded to modify sections of barriers on the U.S. border with Mexico, and the Dept. of Defense is seeking to follow up with more contracts in coming months. But at ENR press time, DOD had yet to decide which military construction projects it will seek to hold over until 2020 to free up funds for some of that future border work.

Mr. Ichniowski may be contacted at ichniowskit@enr.com


NYC Green Bill Requires Major Retrofits on Largest Buildings

July 30, 2019
Eydie Cubarrubia & Pam Radtke Russell - Engineering News-Record

New York’s largest buildings will have to be retrofitted to produce fewer carbon emissions under one of the first laws passed by the city council as part of the city’s sweeping Green New Deal. Under the law approved April 18, all buildings 25,000 sq ft or more must reduce their emissions 40% from 2005 levels by 2030 and 80% by 2050.

ENR may be contacted at ENR.com@bnpmedia.com


Building TWA Hotel's Quiet Space in the Middle of JFK Airport

July 22, 2019
Eydie Cubarrubia - Engineering News-Record

To hear is to see, proclaims the title of a 1969 jazz album — and in building a quiet hotel in the middle of an airport, that phrase rings true.

Ms. Cubarrubia may be contacted at cubarrubiae@enr.com


Midwest Floods are Hampering River Projects

July 15, 2019
Engineering News-Record

The Midwest’s waterways have been hit hard by an unusually rainy and snowy spring. Since March, the Mississippi River has maintained high water levels and crested at near-record levels on May 1. The flooding is also impacting construction operations along the river.

ENR may be contacted at ENR.com@bnpmedia.com


Number of Women in Construction Rises, but Underrepresentation Persists

July 9, 2019
Joanna Masterson - Construction Executive

The number of women working in construction trades increased 17.6 percent between 2017 and 2018, rising to more than a quarter of a million women (276,000), according to new analysis by the Institute for Women’s Policy Research. This is five-fold better than the 3.7 percent job growth in construction occupations overall.

Reprinted courtesy of Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


How Performance Bonds Work in Construction

July 1, 2019
Todd Bryant - Construction Executive

Contractors who are awarded a contract are frequently required to obtain several surety bonds before they can begin the project. One of these bonds is the performance surety bond.

A performance bond basically guarantees a contractor's performance under a contract. Yet, there are a number of important details that contractors need to know about performance bonds when they are required to obtain one.

Reprinted courtesy of Todd Bryant, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Four Ways Contractors Can Prepare for the Emergence of Smart Cities

June 25, 2019
Annalisa Enrile & Oliver Ritchie - Construction Executive

The world is becoming a global metropolis with an estimated 60% of the population living in cities by 2050. The “Smart Cities” movement envisions the quality of life in urban areas are sustainable, efficient and humane. Generally, a smart city is one that incorporates information and communication technologies (ICT) to meet this goal. Smart city development includes the use of smart initiatives that leverage technology investments. They are reliant on the Internet of Things (IoT), sensors and software to collect data from every imaginable aspect of infrastructure and community. The construction industry is literally building these cities, so contractors play a pivotal role in the smart city movement reaching its potential.

Reprinted courtesy of Annalisa Enrile & Oliver Ritchie, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Construction Fire Safety Practices: What Superintendents Need to Know

June 18, 2019
Raymond O’Brocki - Construction Executive

Fire safety in buildings under construction is a hugely important topic due to the devastating impact large construction fires can have. While rare, the consequences of construction fires are attracting more attention in the public and private sectors, pointing to the need for more accountability on construction sites and greater enforcement of existing fire and building codes.

A variety of best practice manuals and training videos are available on www.constructionfiresafety.org to help reduce the frequency and severity of construction fires. These materials are designed to educate and inform construction crews, including site superintendents, local building and fire regulators, and responding fire departments on how to prevent fires, reduce losses and ensure overall safety at large construction sites.

Reprinted courtesy of Raymond O’Brocki, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Construction M&A Activity to Remain Strong Following Record 2018

June 10, 2019
Joanna Masterson - Construction Executive

In 2018, 534 mergers and acquisitions were announced in the engineering and construction industry, a 26.5% increase over 2017, and by far the highest level of activity recorded by FMI. This year, M&A activity should remain strong but return to more normal levels (i.e., 390-440 deals).

In FMI’s 2019 survey, nearly 60% of all respondents indicated that acquisitions were a part of their current strategy, down from 70% in last year’s report. And while more than half of respondents indicated they are less likely to make an acquisition this year compared to 2018, nearly two-thirds said M&A activity will increase in 2019 and 33% believe it will stay the same.

Reprinted courtesy of Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Construction Employment Surges to Start Year, Says ABC

June 3, 2019
Associated Builders and Contractors - Construction Executive

Construction employment expanded by 52,000 net new jobs in January, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics. Industry employment is up by 338,000 net jobs on a yearly basis, which represents an increase of 4.7 percent. Nonresidential construction employment grew by 28,600 net new positions on a monthly basis, although the nonresidential building sub-sector lost 800 net positions.

Reprinted courtesy of Associated Builders and Contractors, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Contractor and Equipment Distributor Optimism Remains Strong

May 27, 2019
Joanna Masterson - Construction Executive

Contractors and equipment distributors believe construction industry expansion is more likely than contraction this year, according to the 2019 Wells Fargo Equipment Finance Construction Industry Forecast. Ninety percent of respondents expect net profits to remain the same or rise in 2019, and Wells Fargo’s optimism quotient remains very strong at 122, compared to 133 in 2018, 123 in 2017 and 108 in 2016.

The vast majority of contractors (96 percent) plan to purchase new or used equipment this year; of those, three-quarters plan to maintain or increase their 2018 buying level. Similarly, 92 percent plan to maintain or increase their rental activity, and 46 percent say flexibility is the dominant reason they rent equipment.

Reprinted courtesy of Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


The Intersection of Risk Management, Safety, Technology and the Workforce

May 20, 2019
Sean Martell - Construction Executive

The construction space looks attractive in 2019, given its solid economic position, consistent job growth expectancy, and the promises made to boost infrastructure spending in the United States.

However, according to McKinsey Global Institute’s 2018 research report, “Reinventing Construction Through a Productivity Revolution,” the industry is slow to adopt technology, and has been struggling with stagnant productivity levels for decades. One reason for this is companies continue to use various older systems instead of integrating technologies to consolidate methods and increase overall efficiency.

Reprinted courtesy of Sean Martell, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Surety Bonding in 2019: What Should Contractors Be Ready For?

May 13, 2019
Vic Lance - Construction Executive

This year will see a number of new surety regulations taking effect across the country. These will require contractors to obtain construction bonds or contractor license bonds in different amounts and adjust to new compliance standards implemented by sureties. Moreover, questions about the state of the economy and what contractors can expect in terms of government spending are also on the table and require attention.

Reprinted courtesy of Vic Lance, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


A Digital Transformation Report: Five Emerging Trends in Construction

May 6, 2019
Stephanie Viers - Construction Executive

The construction industry is in a moment of enormous change. Business is booming — and so is the number, complexity and duration of projects. Concurrently, a serious shortage of affordable, skilled labor means that many companies are operating short-staffed.

Increasingly, construction companies are turning to technology to improve their productivity, make the most of limited resources, improve safety and document and coordinate every step of their projects. According to McKinsey, investment in construction technology has doubled in the past decade. The most innovative companies are integrating technology into their daily processes, choosing technology partners that provide intuitive tools that every team member can use. By doing so, these companies are able to remain competitive and grow revenue, reaping the benefits of more comprehensive real-time reporting, resulting in savvier asset allocation and project planning.

Reprinted courtesy of Stephanie Viers, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.

Ms Viers may be contacted at stephanie.viers@smartsheet.com


Report Predicts 4.8 Percent Rise in Construction Spending This Year

May 1, 2019
Joanna Masterson - Construction Executive

2019 construction spending is expected to continue rising, up 4.8 percent, although at a slower pace than 2018’s 6.5 percent growth, according to Atradius’s annual Market Monitor for the global construction industry. As the U.S. economic expansion slows down, commercial construction growth should decline slightly this year due to higher office vacancies.

Residential construction is expected to grow modestly on the back of wage growth, low unemployment and low inventories, while higher interest rates have an adverse effect. Nonresidential construction is projected to continue improving, largely supported by the $305 billion Fixing America’s Surface Transportation Act.

Reprinted courtesy of Joanna Masterson, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Five Ideologies That Need to Change for Construction to Advance

April 22, 2019
Matt Mann - Construction Executive

While it may seem as though the construction industry has stuck to the status quo for some time, peering beneath the surface reveals much more is changing than actually meets the eye. Despite an estimated 11 percent increase in commercial construction in the United States, the percentage of young construction workers has declined by 30 percent in the past decade. With more projects and fewer workers, the landscape of the construction industry must adapt if it hopes to advance.

1. Construction Sites Are Prone to Delayed Information
Historically, construction sites have been operating comparably to a game of telephone: inaccurate information travels slowly by word of mouth to each party operating different portions of the jobsite. However, with the emergence of artificial intelligence (AI), there is reason to believe a solution is on the horizon. Often, all parties involved in a project have different pieces of information. Fifty-two percent of rework is the result of poor project data or miscommunication, costing more than $31 billion in 2018 alone. Having a common and consistent understanding is crucial to the success of a jobsite to generate more trust and improve decision-making. Tools such as AI establish newfound workplace transparency and are rapidly improving the efficiency of construction and development.

Reprinted courtesy of Matt Mann, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Four Trends to Watch for the Construction Industry in 2019

April 17, 2019
Mike Sobolewski - Construction Executive

By most accounts, 2017 and 2018 were successful, but balanced, years for the industry. Many companies recognized the benefits of strong backlogs and growth in a number of the industry sectors, while also seeing challenges in cost containment, product availability, talent and preparing for an anticipated overall downturn.

Engineering and construction firms often are the hardest hit when economic conditions change. Some strategies that could help position construction firms for success include using technology to improve efficiencies, renegotiating contracts with clients and suppliers and using M&A to increase market share. Even with the best-laid plans, however, unanticipated political and economic events can require organizations to change course. Agile strategies are key to managing capital projects and infrastructure.

Reprinted courtesy of Mike Sobolewski, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.


Trends in Commercial Real Estate Contractors Need to Know

April 10, 2019
James Segil - Construction Executive

Commercial real estate stakeholders are finding it more important than ever to upgrade their buildings’ infrastructure and embrace new technologies. However, it can be tough to distinguish between which tech trends are passing fads and those that are worth investing in. As tenant needs shift, making the right investments can greatly impact the long-term health and prosperity of a building and can help attract and retain tenants.

One of the biggest trends to look out for in CRE tech is a growing focus on user experience. This will be the overarching theme for CRE tech trends in 2019 and beyond. As new generations enter the workforce, more tenants will demand a better user experience as new office technologies capable of simplifying their workdays emerge. Building owners need to listen to these desires and provide their tenants with technologies that improve their everyday experiences at the office. Here are just a few ways to do this.

Reprinted courtesy of James Segil, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.



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