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.

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.

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 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.

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.

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.

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.

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.

A joint venture led by Spanish construction company Actividades de Construccion y Servicios SA won a $3.3 billion contract to build a bridge-tunnel project in Virginia.

The Hampton Roads Connector Partners venture, 67 percent owned by ACS subsidiaries Dragados USA and Hochtief AG, will design and build improvements along 9 miles (14.5 kilometers) of the I-64 highway connecting Hampton and Norfolk, ACS said in a statement released Friday.

Following 5 percent growth in total U.S. engineering and construction spending in 2017 and 2017, FMI predicts another increase of 3 percent this year. Primary growth segments (of 5 percent or more) are expected to include office, educational, public safety, transportation, conservation and development, and manufacturing. Most other segments should roughly match the rate of inflation and therefore be considered stable, but look for the multifamily, lodging and religious markets to experience declines.

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

In a survey of more than 500 members of Associated Builders and Contractors, 98 percent said they were less likely to bid on a taxpayer-funded construction contract if the bid specifications required the winning firm to sign a project labor agreement with labor unions. Additionally, 97 percent stated that a construction contract mandating a PLA would be more expensive compared to a contract procured via free and open competition.

There was near unanimous consent that a PLA would result in worse local hiring outcomes for a project, and almost 90 percent of respondents agreed that a PLA would decrease the hiring of women, veterans and disadvantaged business enterprises.

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