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The BCANJ hot topics page features new and interesting topics that affect the construction industry. Scroll down to read our most recent Hot Topics.
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INDUSTRY NEWS
March 2010
LOCAL | March 8, 2010
Morris County to Expand Public Safety Academy
A $24.6 million capital expansion of the Morris County Public Safety Academy in Parsippany will add 31,000 sq. ft. and renovate the rest of the 15,500 sq. ft. facility to accommodate planned growth of the county’s emergency communications center. Eventually the center will handle dispatching, 911 response and other services for all 39 towns in the county, a consolidation that should result in significant savings for the 22 towns that currently operate their own dispatch systems. When it opens in 2013, the center's new addition will also house the sheriff’s criminal investigation unit and a new crime lab. To offset some of the project’s cost, the county has arranged $3.2 million in federal and state grants.
NATIONAL | March 8, 2010
Construction Job Losses Jump in February
Nationwide, the construction industry lost 64,000 jobs in February, a loss that pushed the industry's unemployment rate to 27.1%, nearly three times the overall unemployment rate for the country.
NATIONAL | March 4, 2010
2009 Collective Bargaining Increases Lowest In 13 Years
In data collected by the Construction Labor Research Council, almost 10% of the collective bargaining settlements in 2009 reflected a zero increase, causing the average first-year increase in wages and fringe benefits to drop to its lowest point since 1996. At $1.23 – 2.8% – the average in 2009 was closing in on half that of 2008, when it came in at $1.95 – 4.6% – which had been the highest increase since 1999. The average second-year increase negotiated for multi-year agreements was $1.55 – 3.2% – in 2009, as compared to $2.25 – 4.7% – in 2008. Also notable in the negotiations: 49¢ of the $1.23 average first-year increase was designated for pension fund contribution increases. Settlements did not vary as much region-by-region in 2009, and more than half the agreements were negotiated for only a one-year term. Typically, about 40% are for three-year terms.
LOCAL | March 5, 2010
National Park Service Extends Comment Period on Proposed Power Lines
UPDATE to the Hot Topic posted February 17, 2010: The National Park Service, which had hosted three public hearings in mid-February on PSEG’s proposed 146-mile transmission line across New Jersey and Pennsylvania, has extended the public comment period until March 12. The Park Service is gathering the comments for use in its environmental impact statement.
LOCAL | March 4, 2010
$160 Million Cancer Treatment Center Going Up in Somerset
Proton therapy, an alternative cancer treatment to X-ray radiation, is coming to Somerset County, in the first proton treatment facility in New Jersey and the New York metro area. ProCure Treatment Centers, Inc., of Indiana, Princeton Radiation Oncology and CentraState Health System of Freehold are collaborating to build a $160 million proton therapy treatment center in Franklin Township, with groundbreaking planned for April 7, 2010. The 60,000 sq. ft. facility, to be located at 101-103 Cedar Grove Lane, is expected to be open in 2012. The project will create 400 construction jobs and 100 permanent jobs, and New Jersey-based contractors will do the construction.
NATIONAL | March 3, 2010
Bricklayers’ President John Flynn Retires
John J. Flynn, President of the International Union of Bricklayers and Allied Craftworkers, announced yesterday he will retire. Flynn had served as President since 1999. James Boland, previously Secretary-Treasurer, was sworn in as the new President.
LOCAL | March 1, 2010
Governor Proposes UI Fund Solutions
New Jersey’s Unemployment Insurance Trust Fund is insolvent, but Governor Christie doesn’t want an increased employer payroll tax to fund it. The automatic payroll tax increase would be as much as $683 per employee, and the Governor’s proposed suspension of the tax would give New Jersey employers vital relief during the recession. Instead, the proposed plan would impose an average payroll tax increase of $130 per employee, phase in any additional increases to allow employers to prepare for them in advance, reduce the maximum weekly unemployment benefit from $600 to $550, require a one-week waiting period before benefits can be claimed, make the “extended benefit” provision dependent on the continuation of 100% federal funding of benefit costs, and further call on the federal government to continue full funding for the extended benefit.
February 2010
NATIONAL | February 22, 2010
January Construction Stats: Good News & Bad
Reed Construction Data reports January 2010 construction starts, excluding residential contracts, totaled $24.1 billion, 20.1% higher than January 2009, and 6.3% higher than December 2009. In fact, the January starts were 30% higher than the monthly average for the first half of 2009. The value of the starts might have been even higher, but for the exceptionally bad weather experienced across much of the country. Of the January starts, non-residential buildings saw a 10% increase, commercial building jumped 47%, and institutional building increased 4%, with notable gains for nursing homes, libraries and museums, educational facilities and government offices. The bad weather could also be partially to blame for the construction unemployment rate, which hit an unprecedented 25% in January, representing more than 2.19 million construction workers who have been laid off since the recession began.
LOCAL | February 17, 2010
National Park Service to Review Proposed Parkland Power Lines
PSE&G claims the 500,000-volt transmission line, planned for a 146-mile route through North Jersey and Pennsylvania, is essential for reliable power in the region. Environmental groups claim the towers will stand significantly taller than the tree line, ruining the aesthetics at the Delaware Water Gap, along the Appalachian Trail and above the Delaware River – as well as harming the environment and posing health and financial risks for residents. The New Jersey Board of Public Utilities and the Pennsylvania Public Utility Commission have both approved the Susquehanna-Roseland project, which is expected to take just over two years and $900 million to $1.2 billion to complete. But the New Jersey Sierra Club, the Delaware Riverkeeper Network and other opponents have asked the National Park Service to step in and conduct an environmental impact study of the project, which would cross three federal parks: the Delaware Water Gap National Recreation Area, Middle Delaware National Scenic and Recreational River, and the Appalachian National Scenic Trail in Pennsylvania and New Jersey. That study could also take two years. The National Park Service has scheduled three public hearings on the issue this week.
LOCAL | February 11, 2010
Xanadu’s Fate: Savior or Surrender
Named for Samuel Taylor Coleridge’s “stately pleasure dome” in his poem “Kubla Khan,” the Xanadu project in the Meadowlands has been long-delayed and remains desperate for financing. Its fate is still unknown, but if a savior isn’t found, such as developer Steven Ross, as suggested in a recent Bergen Record article, it could be surrendered back to the State of New Jersey, which owns the land.
The Savior: Ross and his firm, The Related Companies, turned Manhattan’s Columbus Circle into the Time Warner Center, a 2.8-million-square-foot vertical mall that features a Whole Foods Market, the Mandarin Oriental New York hotel, upscale Shops at Columbus Circle and the 1,200-seat Jazz at Lincoln Center theatre. It’s not known if Ross would be interested in taking on the Xanadu project.
The Surrender: In a report prepared for Governor Christie’s transition team, the Xanadu business model was labeled a failure. The report called for the land to be surrendered back to the state if the $2 billion project could not be completed and opened.
LOCAL | February 4, 2010
Gov. Christie Creates Panel to Fix NJ Gaming, Sports and Entertainment
Governor Christie’s Executive Order 11, issued today, creates an advisory commission to study and address the financial and structural challenges that are hurting New Jersey’s gaming, professional sports and entertainment industries. The seven-person New Jersey Gaming, Sports and Entertainment Advisory Commission, headed by Jon F. Hanson, a former chairman of the New Jersey Sports and Exposition Authority, will work without compensation under a June 30 deadline to fashion solutions for the issues outlined in Governor Christie’s Transition Subcommittee, including the ongoing financial viability of the NJSEA; advancing or resolving the stalled Xanadu project; improving the competitiveness of the Atlantic City gaming industry and promoting the city as a destination resort; ensuring that horseracing becomes financially self-sustaining; and proper scheduling of entertainment events at the IZOD and Prudential centers to ensure their mutual success.
LOCAL | February 2, 2010
Delaware River Dredging Finally A “Go”
After 30 years of wrangling, the Army Corps of Engineers finally got the go-ahead to start a dredging project that will deepen by five feet a 13-mile stretch of the Delaware River known as Reach C. The federal judge told opponents – Delaware, New Jersey and various environmental groups – that the rest of the proposed 102.5-mile dredging project also should proceed. New Jersey has a lawsuit to block the project pending in US District Court in Trenton.
NATIONAL | February 2, 2010
White House Calls for Army Corps Funding Cut
President Obama’s budget draft for fiscal 2011 proposes $4.81 billion for the Army Corps of Engineers, $630 million less than this year’s appropriations bill. That’s a 12% cut that slashes the construction budget from $2 billion to $1.6 billion.
January 2010
NATIONAL | January 22, 2010
California Mandates Statewide Green Building Code
Earlier we reported the first international green building standard is due to be released in March. The latest green “first” is out of California, which recently became the first to mandate a statewide green building code. The Calgreen regulations are designed to help the state meet its goal of cutting greenhouse gas emissions 33% by 2020. Starting in January 2011, every new building in California will have to reduce water usage by 20% and recycle 50% of its construction waste, rather than sending it to landfills. Commercial buildings will have separate water meters to measure indoor and outdoor water use. And all commercial buildings over 10,000 square feet will have mandatory inspections of air conditioner, heat and mechanical equipment. Hospitals are exempt from the new regulations. The California Air Resources Board claims Calgreen regulations will remove three million metric tons of emissions from the air by 2020.
NATIONAL | January 18, 2010
Construction Unemployment Keeps Climbing
After a loss of 53,000 construction jobs in December, including 7,700 in the nonresidential building sector, unemployment in the industry reached 22.7%, the Bureau of Labor Statistics reports. That’s up sharply from 15.7% at the end of December 2008. Since the recession began two years ago, the construction industry nationally has lost 1.6 million jobs. More than 2 million workers were seeking jobs at the end of 2009.
NATIONAL | January 7, 2010
International Green Construction Code To Be Released In March
The first international code to address sustainable design and green construction practices for all commercial building types is due to be released in March, just in time for St. Patrick’s Day. Authored by the Sustainable Building Technology Committee, the International Green Construction Code is designed to offer flexibility to account for varying local and regional conditions, such as energy resources. It will apply to both traditional and high-performance buildings and both new construction and renovation. The Committee, which is comprised of code officials, sustainability experts, members of the International Code Council and other representatives from the architectural, engineering and construction communities, will seek public comment through August, followed by a second review, comment period and public hearings in 2011. Final publication is scheduled for the 2012 ICC Family of Codes.
NATIONAL | January 6, 2010
EPA Construction Site Stormwater Rules In Effect Next Month
In less than a month, the EPA’s rule on controlling stormwater runoff on construction sites goes into effect. The rule marks the first time the EPA has imposed national monitoring requirements and enforceable numeric limitations on stormwater discharge from jobsites. In effect February 1, 2010, and phased in over four years, the rule requires owners, developers and contractors whose projects cover from one or more acres to use “best management practices” to ensure that soil disturbed during construction doesn’t pollute nearby streams and rivers. In the initial phase, the rule also addresses sites that impact 10 or more acres, calling for the discharges to comply with specific limits. The rule tightens regulations over the four-year phase-in. For rule specifics, visit www.epa.gov/waterscience/guide/construction/.
LOCAL | January 5, 2010
New Jersey Economic Analysis
Wells Fargo Securities’ Economics Group has issued a point-by-point analysis of New Jersey’s economic status as of year-end 2009. Highlights include a review of unemployment figures, the housing market decline, the state’s financial crisis and population drain. The analysis reports a 9.7% unemployment rate, the highest in three decades, with pockets of even steeper unemployment in Cumberland and Atlantic counties that rank among the highest in the nation. The high unemployment rate has correspondingly resulted in decreased tax revenues, a significant budget gap and projections for budget shortfalls well into fiscal year 2012. Housing starts seem to have bottomed out but no growth is expected until late in 2010 or early 2011. And population in the state has only increased 3.2% in the last decade, about a third of the national population growth. Most notable, the median age of New Jersey residents, 38.7, is higher than the national average, and the percent of the population 65 and older is growing, which will adversely affect employment and economic growth. Overall, the analysis concludes that New Jersey’s economic recovery will lag about a year behind the nation’s as a whole. Any good news? Job loss is slowing, economic activity is picking up, New Yorkers are relocating here and home sales are posting positive gains.
For a copy of the five-page report as a PDF file, please contact BCANJ at 732.225.2265 or e-mail dteall@bcanj.com.
December 2009
LOCAL | December 28, 2009
BCANJ Members in Book of Lists Top 10
Every year, the New Jersey Business & Industry Association publishes its Book of Lists. In the 2010 Book, four of the Top 10 Contractors, ranked by number of New Jersey employees, are BCANJ members: URS (#1), Skanska (#5), Epic (#6) and Torcon (#10).
LOCAL | December 15, 2009
ARC Tunnel Dig “Bore-Ready”
On December 14, 2009, NJ Transit awarded the first tunneling contract of the mass transit tunnel across the Hudson. The first of three phases, a mile-long stretch expected to take three years, should begin early next year when the contractors employ massive tunnel-boring machines to excavate under Manhattan’s West Side. The second phase, the Palisades tunnel segment, will go out for bid in the next few weeks, followed by the Hudson River segment, the final phase. The mass transit tunnel is the largest public works project in the country, and should be completed by the end of 2017.
NATIONAL | December 15, 2009
Construction Equipment Shipments Hold Steady
From June through October, construction equipment shipments from US factories have held more-or-less steady, a sign the equipment market has reached bottom. The market fell 55% in four years, since early 2006, and is expected to continue to fall another 5% through Spring 2010, with no significant pickup through all of next year. However, beginning in June, shipments have averaged 6% higher every month than the numbers of May.
NATIONAL | December 15, 2009
Construction Starts Rose in November
Nonresidential building construction starts rose 16% in November over October, which should help stop the downward trend in construction spending. At the same time, construction materials orders, production and sales all dropped, and the numbers for the months leading up to October were also revised lower. The slump is a result of both the decline this year in nonresidential construction spending and the fact that some commercial building projects were suspended after work had started.
NATIONAL | December 14, 2009
ConsensusDOCS Green Building Document Released
In November, ConsensusDOCS 310 Green Building Addendum was released to address the challenges associated with sustainable building. The new contract was developed in response to a surge in green building projects, and was designed to help advise the owner, set up proper expectations, mitigate risk and increase project success by clearly identifying roles and responsibilities for contractors, designers, owners and others involved in the project. For more detailed information, visit www.ConsensusDOCS.org.
NATIONAL | December 14, 2009
E-Verify “Self-Check” Option Planned
Currently only employers can screen employee information to determine employment eligibility via the federal government’s E-Verify system, but the feds plan to add a self-check system for workers to screen themselves. Thus, workers could make sure of their status before applying for new jobs, a move the government hopes will help ease tension between opposing sides in the immigration debate.
NATIONAL | December 07, 2009
Construction Unemployment Still Climbing
While the national unemployment rate – and New Jersey’s – dropped a bit in November, the jobless rate in the construction industry went up nearly a point, from 18.7% in October to 19.4%. The only positive news is the number of jobs lost in November, 27,000, is less than the national average 63,000 lost monthly from May through October, and significantly less than the average 117,000 jobs lost monthly from November 2008 to April 2009.
New Jersey lost 21,700 construction jobs in the 12-month period from October 2008 through October 2009, a 13% drop. All of New Jersey’s largest metropolitan areas lost construction jobs, many in double-digit percentage points. For the most recent data, visit www.agc.org.
LOCAL | December 3, 2009
Pleasantville Redevelopment Project Set to Go
The Pleasantville City Center Redevelopment project now has a signed master developer’s agreement between the city and River Development LLC of Red Bank, allowing the approval process for the project to begin immediately. The first of three phases is a $50 million mix of retail and residential, featuring 300 rental units targeted at Atlantic City casino workers and 20,000 sq.ft. of retail, expected to take two years to complete. Design of the other two phases will continue during construction of the first phase.
November 2009
NATIONAL | November 30, 2009
US Government to Allow ConsensusDOCS Contracts
The US Department of Agriculture’s Rural Utility Service is the first federal agency to allow the use of ConsensusDOCS contract templates. The first jobs to be covered by the templates are for water construction projects worth up to $20 billion each year. The two ConsensusDOCS templates allowed are the Electronic Communications Protocol and the Contractor’s Qualification Statement for Engineered Construction. According to AGC of America’s Brian Perlberg, executive director of the ConsensusDOCS coalition, the federal government joins several other large-scale project owners in using the contract documents. South Dakota, Michigan and North Carolina, along with Habitat for Humanity, all now routinely use ConsensusDOCS.
NATIONAL | November 30, 2009
Union Contractors Urge Healthcare Bill Amendment
In mid-November, a consortium of union contractors pushed for an amendment in the Senate version of the national healthcare bill that would ensure construction industry employers that do not provide healthcare benefits would not benefit from a compliance-relief proposal for small businesses. As written, the proposed Senate bill would require all employers with 50 or more employees to provide healthcare coverage for their workers, or pay penalties. However, the union contractors group claims non-union contractors could fall into the small-business, less-than-50 workers category, and be exempt from providing coverage, gaining a competitive advantage. Therefore, the group wants a construction-specific amendment that exempts only construction companies with less than six employees and payrolls totaling $250,000 or less.
LOCAL | November 24, 2009
New Jersey’s Stimulus Money Is Still Unspent
New Jersey’s “shovel-ready” county road projects are still ready, but the federal stimulus funds – millions of dollars – slated to pay for them won’t be used until next year, according to a story in today’s Star-Ledger. The reason? Detail-laden documentation. For example, cites John Reiser, Middlesex County’s engineer and director of public works, “one project required county workers to photograph sidewalks at 700 intersections to show construction would not adversely affect handicapped-accessible curb cuts.” Similar stories have emerged from Somerset, Morris and other counties across the state. But despite the delays, the State still expects bids to be out by March 2, 2010, the federal deadline, on the $625 million allocated to New Jersey.
NATIONAL | November 24, 2009
EPA Rules to Reduce Construction-Site Pollution
The Environmental Protection Agency issued a final rule this week imposing management practices designed to reduce pollution on construction sites, thereby improving water quality. The EPA estimates the rule will cover nearly 82,000 homebuilders, commercial and industrial building contractors, and civil-engineering companies, and cost those builders $953 million in annual costs, at a time when the construction industry is suffering a terrible economic recession. The rule will be phased in over four years, and will require contractors and owners to use soil stabilization and erosion control. Contractors on sites that disturb 20 or more acres will be subject to federal monitoring and limits on stormwater discharge; that acreage parameter will eventually drop to 10 acres.
LOCAL | November 20, 2009
New Brunswick Gateway Project Gets Go-Ahead from Rutgers
The Rutgers University Board of Governors ceded ownership of an Easton Avenue property to the New Brunswick Development Corporation (DevCo), clearing the way for the Gateway Transit Village Project in downtown New Brunswick. The mixed-use Gateway project, estimated at $150 million, will connect the New Brunswick train station with the Rutgers campus, and will include a Barnes and Noble bookstore and other retail stores, the Rutgers University Press, 200 condominiums and a 650-space parking facility to be run by the New Brunswick Parking Authority. The site had been occupied by a Rutgers public safety garage, now demolished.
NATIONAL | November 9, 2009
Construction Unemployment Climbs to 18.7%
The national unemployment rate rose nearly a half a percentage point from September to October, 9.8% to 10.2%, but the construction industry’s unemployment rate hit 18.7%, up 1.6% from September’s rate of 17.1%. Construction unemployment remains the highest among major industries. October’s construction job losses were concentrated in the nonresidential specialty trade contractors sector, which lost 30,000 jobs, and in heavy construction, which lost 14,000 jobs.
A glimmer of good news is the slowing pace of job losses among nonresidential building contractors, which lost 3,200 jobs in October, compared to 12,000 lost in September.
NATIONAL | November 5, 2009
New Fed Tax Bill Would Provide Homebuyer, Business Tax and Jobless Benefits
On November 3, 2009, the US Senate voted unanimously to renew the $8,000 tax credit for first-time home buyers, and add a tax credit of $6,500 for many people who purchase a new primary residence. The measures were attached to a bill that would benefit strapped businesses and unemployed workers with these two provisions:
--Businesses that had operating losses in 2008 and 2009 could seek refunds for taxes paid on profits over the last five years. This measure complements New Jersey’s law that increases the carryover period of the net operating loss deduction under the corporation business tax.
--In states with a jobless rate above 8.5%, the federal government would provide 20 weeks of unemployment benefits, and would provide 14 weeks of benefits to states with rates lower than 8.5%. New Jersey’s current unemployment reached 9.8% in September.
LOCAL | November 3, 2009
Atlantic City Walk to expand
Plans for the next two phases of The Walk, the Atlantic City retail and entertainment project, were announced by the Casino Reinvestment Development Authority and Cordish Company, the Baltimore developer. With a November groundbreaking, phase 3 will include 45,078 square feet of new factory outlet space on Christopher Columbus Boulevard and Fairmount, Mississippi and Artic Avenues. Phase 3 could create as many as 400 construction jobs and 400 new permanent jobs; the Development Authority will provide a $9 million loan toward the project, while Cordish will fund the remainder of the $15 million development cost. Phase 4 will focus on Atlantic City Live, a restaurant and entertainment district with a capital investment expected to exceed $100 million.
NATIONAL | November 3, 2009
Nonresidential building construction drops in September
In the latest figures from Reed Construction Data, jobsite spending on nonresidential building construction fell 1.6% in September. Since its peak in early 2008, spending for commercial buildings has fallen 34%, but RCD’s Jim Haughey feels most of the deep decline is now over. However, Haughey expects no improvement in the market until well into 2010.
October 2009
LOCAL | October 29, 2009
State Unemployment Matches National Level
New Jersey’s unemployment rate climbed to 9.8% in October, matching the national rate.
NATIONAL | October 27, 2009
Legislation Introduced to Provide Pension Funding Relief
Rep. Earl Pomeroy (D-ND) and Rep. Pat Tiberi (R-OH) introduced new legislation to provide pension funding relief that would meet the challenge of sky-high pension costs and enable employers to retain or even grow their workforce. The Preserve Benefits and Jobs Act is designed to restore defined benefits plans to financial soundness over time, so that employers would not have to freeze their pension plans or cut the workforce to make up for pension losses. The Act would cover multiemployer pension plans. We will track the progress of this legislation as it proceeds through Congress.
LOCAL | October 22, 2009
Mechanical Contractor Lawsuit Halts NJ School Construction
The Mechanical Contractors Association of NJ is suing the NJ Schools Development Authority for trying to change the bidding process for five New Jersey schools. The lawsuit has shut down work on the projects for months. The SDA would like to move from a design/bid/build process to a design/build method, claiming that combining design and construction phases would cut costs and speed construction. The Mechanical Contractors Association says the process would be unfair to small contractors and more costly for taxpayers. The SDA wants to test the process on five of the 25 school projects it has slated for this year: Newark’s Elliott Street School, New Brunswick’s Redshaw Elementary School, Keansburg’s Lorraine Place Elementary School, and Jersey City’s Elementary School No. 3 and Early Childhood Center No. 3. After the suit was filed, the state Appellate Division halted work on the Elliott Street School. Both sides filed arguments on October 22, 2009, but may wait months for a decision.
We will continue to track the issue and report developments as they occur.
NATIONAL | October 22, 2009
McGraw-Hill Projects 14% Increase in 2010 Public Works Construction
Stimulus funds for water and wastewater projects hit a snag with the Buy American provisions, but McGraw-Hill Construction predicts that public works such as these will pick up in 2010 and increase construction activity by 14%. That prediction came simultaneously with the news from Reed Construction Data that the year-to-date value of construction starts declined 12.8% in September over September 2008 levels. However, the construction starts for the quarter July through September 2009 averaged 5% higher than the same period in 2008.
LOCAL | October 20, 2009
Groundbreaking for Aviation Park in Egg Harbor Township
Ground was broken for the Federal Aviation Administration’s Aviation Research and Technology Park, a seven-building project on 55 acres adjacent to the Atlantic City International Airport and the FAA’s William J. Hughes Technical Center. Expected to create more than 2,000 jobs, the Park will be a high-tech aviation facility for research, development, testing, integration and verification of new technologies. Private firms will be able to enter into agreements with the FAA to conduct research projects. The Aviation Park is a non-profit corporation governed by a Board of Trustees, which will send out requests for Development Interest and Qualifications within the next 60 days.
LOCAL | October 15, 2009
1,600 Finance Jobs Coming to Jersey City
Gov. Corzine announced the Depository Trust & Clearing Corporation will move 1,600 finance jobs from Manhattan to the Newport Office Center at 570 Washington Blvd. in Jersey City. Those 1,600 jobs will generate $300 million in taxes and other spending during the 20-year lease, according to the governor. New Jersey’s Economic Development Authority offered close to $90 million in incentives to persuade DTCC to make the move, including $14.6 million in grants to help the firm with renovation costs and $74.6 million in tax incentives. The incentives come via the Economic Redevelopment Growth Grants, part of the New Jersey Economic Stimulus Act of 2009 signed into law in July.
NATIONAL | October 14, 2009
"No Match" Rule Officially Ends
After a two-year court battle, the US Department of Homeland Security officially withdrew the "No Match" rule on October 7, 2009. The rule threatened employers with fines and criminal prosecution if they didn't fire workers whose Social Security numbers didn't match entries in the Social Security Administration's database. Also this past week, a House-Senate conference committee voted to extend the DHS E-Verify program for three years. E-Verify uses the same SSA database to confirm worker eligibility, although the program doesn't include prosecuting employers. E-Verify is currently voluntary except for the 170,000 firms holding federal contracts and their subcontractors.
LOCAL | October 8, 2009
Six NJ Sites Designated as Brownfield Development Areas
The NJ Department of Environmental Protection has designated six contaminated properties in Lodi, Kearny, Plainfield, Rahway, Somerville and Woodbridge as Brownfield Development Areas, and pledged up to $5 million in annual funding for each site. There are approximately 10,000 brownfields in New Jersey, but only 31 have been designated development areas, allowing them to be remediated and redeveloped in a joint effort by the state, municipalities, private-property owners and environmentalists.
· Lodi plans to recreate a downtown district between the borough hall
and Route 46 with retail and office space.
· Kearny's plans include mixed senior-citizen housing, commercial
facilities and a riverfront walk along the Passaic River.
· Plainfield wants to revitalize its central business district with
small-scale commercial establishments.
· Rahway looks to add a 1,100-seat amphitheater and black-box theater
within walking distance of the train station.
· Somerville hopes to redevelop an old landfill and parking lots near
the Raritan River with mixed-use properties with access to NJ
Transit's Raritan Valley rail line.
· Woodbridge, with the largest site, wants to clean up industrial
contamination along the Raritan River and create an eco-park that
allows companies to use each others' waste as resources, as well as
a resource-recovery park for recycling, compost processing and
other resource reuse.
NATIONAL | October 5, 2009
September Construction Unemployment Up
The construction unemployment rate increased in September to 17.1%, up from 16.5% in August, with the industry losing 64,000 jobs. The Bureau of Labor Statistics reports a total construction job loss of 1.5 million since the recession began in December 2007.
September 2009
NATIONAL | September 28, 2009
ConsensusDOCS Releases New Federal Subcontract
ConsensusDOCS 752, the "first and only" standard subcontract for federal construction projects, has just been released and is available for American Recovery and Reinvestment Act work. ConsensusDOCS 752 is FAR-compliant and includes all the federally mandated flow-down provisions. Order it online at www.consensusdocs.org or the AGC of America Bookstore, www.agc.org (Click the BOOKSTORE link on the home page).
LOCAL | September 24, 2009
Refreshed Website for Tracking State Economic Recovery
Live in late September, New Jersey has revamped the State's Economic Recovery Website with more user-friendly navigation. Visitors can track county-by-county use of federal stimulus funds, link to employment opportunities, and sign up for e-mail alerts as new information is added to the site. The next scheduled update will follow the quarterly reporting to the federal government on October 20. View the site at www.nj.gov/recovery.
NATIONAL | September 8, 2009
E-Verify Rule Finally in Effect
After ten months and four delays, the rule requiring federal contractors to use the Dept. of Homeland Security's E-Verify database to confirm worker eligibility is finally in effect. The Federal Acquisition Regulatory (FAR) Council issued the rule in November 2008, but implementation was postponed on four separate occasions in response to legal challenges from labor and management groups and requests for review from the Obama administration. The rule requires contractors to verify eligibility for all new and current employees assigned to work on a federal project with a contract above $100,000 or performance terms of 120 days or longer.
NATIONAL | September 4, 2009
August Unemployment Figures Still Grim
The national unemployment rate rose to 9.7% in August, up 0.3% over last month, reflecting the highest rate since the last deep recession in 1983. Across the country, construction lost 65,000 jobs, approximately the same monthly drop since May. Job losses in nonresidential and heavy construction represented the largest share
August 2009
NATIONAL | August 31, 2009
LEED Group to Collect Energy-Use Data from Certified Buildings
When a building certifies for LEED, is it truly energy-efficient? Not always, apparently. As a result, the US Green Building Council will begin collecting information about energy use from all LEED-certified buildings. Starting this year, owners of all newly constructed LEED-certified buildings will be required to submit energy and water bills for the first five years of operation. If the data isn't provided, the certification could be rescinded.
LOCAL | August 28, 2009
NJ Slated for $6.7 Million for Transit, Energy-Efficiency and Safety
Sen. Frank Lautenberg announced that New Jersey will receive $6.7 million in federal stimulus funding for one energy-efficiency project $3.45 million to revamp the Peter Rodino Federal Building in Newark; two transit projects in Garfield and Morristown (more than $3 million); and one safety project, improving the state traffic safety highway alert information system ($574,000). The money for the Rodino building is an initial payment on $146 million in stimulus funding to convert the building into a high-performance green energy facility. Only three other federal buildings in the nation received a higher grant for energy-efficient conversions.
LOCAL | August 28, 2009
New Jersey Towns Awarded Affordable Housing Subsidies
More than $6.5 million will go to 16 cities and towns in the state to subsidize the development of 650 affordable homes. The subsidies, through the Federal Home Loan Bank of New York's Affordable Housing Program, will go to Basking Ridge, Bordentown and its Hopewell section, Bridgewater Township, Delanco, Florence, Galloway Township, Jersey City, Lower Township, Newark, Orange, Paterson, Pleasantville, Red Bank, Roebling, Stanhope and West Cape May. This is the 20th anniversary of the Federal Home Loan Bank's program to spur the development of affordable housing projects across the country.
LOCAL | August 28, 2009
NJ Transit Properties Go to Paterson
The City of Paterson bought and leased more than three acres near the Paterson train station for future residential and commercial development. The purchase of 2.3 acres of vacant property on Railroad Avenue, envisioned for residential development, will generate $1.3 million in revenue for NJ Transit. An adjoining acre next to the station, leased for a 50-year term, is slated for commercial use.
NATIONAL | August 20, 2009
Construction Workplace Fatalities Decrease in 2008
The latest numbers from the Bureau of Labor Statistics indicate the construction industry had 969 fatalities in 2008, down 20% from 2007's total of 1,204. However, the industry still continues to have the highest number of jobsite deaths among US industries, and it's likely the decrease mirrors the 9.9% drop in total construction hours worked in 2008 over 2007.
NATIONAL | August 18, 2009
AIA Studies Job Creation in Clean Energy Act
The American Institute of Architects has released results of its study to determine job creation within the design and construction industries if the American Clean Energy Security Act (HR 2454) is passed. The study looked at two provisions of the bill the State Energy and Environment Development (SEED) program and the Green Resources for Energy Efficient Neighborhoods (GREEN) program and determined that as many as 270,000 jobs could be created or saved if those provisions in the bill become law. HR 2454 passed in the House and is slated for further action in the Senate.
LOCAL | August 14, 2009
Two New Jersey Solar Technology Firms Win Federal Funds
Two of the five solar energy firms selected to receive financial investments from the US Department of Energy call New Jersey home. Through the DOE's Solar Energy Grid Integration Program, known as SEGIS, Petra Solar of South Plainfield and Princeton Power Systems of Princeton were awarded substantial funds for their solar energy technology development programs.
In other solar energy news, Quick Check, with 120 food stores in New Jersey and New York, installed a 110-kilowatt solar system on the roof of its customer support center in Whitehouse. The system is expected to generate more than 20% of the electricity used at the company's corporate headquarters.
NATIONAL | August 14, 2009
Construction Unemployment Climbs While Overall Numbers Drop
As economists begin to hail the recession's end and the national unemployment picture improves, unemployment in the construction industry leaped nearly a percentage point from June to July, hitting 18.2%. That's up from 17.4% in June, more than 10 percentage points higher than July 2008, and nearly double the country's overall rate in July of 9.4%.
NATIONAL | August 14, 2009
Former US Public Buildings Service Chief Returns
From December 1995 to January 2001, while President Clinton was in office, Robert A. Peck served as commissioner of the General Services Administration's Public Buildings Service. Now he's returned from private practice to take up the chief role again. His top priority will be to turn the $5.55 billion in stimulus funds slated for public buildings into jobs.
LOCAL | August 7, 2009
Woodbridge FedEx Center to Install Largest Rooftop Solar Energy System
FedEx in Woodbridge goes solar, with plans to install the nation's largest rooftop solar panel array. About 12,400 solar panels will cover 3.3 acres of roof on the FedEx Ground distribution center on Industrial Avenue, providing 30% of the facility's energy demand and generating 2.6 million kilowatt-hours of electricity, equivalent to 250 homes. Installation by BP PLC is expected to start this month and be completed in November.
NATIONAL | August 7, 2009
Unemployment Finally Declines in July
July layoffs hit 247,000 jobs, the smallest job loss in a year, dropping the unemployment rate to 9.4%, the first decline in 15 months. Worker hours and paychecks also grew slightly, another first over the last 12 months. According to the Labor Department, 14.5 million people were out of work in July.
July 2009
NATIONAL | July 31, 2009
Stimulus Funds Saving Jobs, But Not Creating New Ones
Industry analysis from AGC of America shows that stimulus funds released to date appear to be helping save construction jobs, but aren't having much impact on creating new ones. The report finds 60% of construction firms with stimulus-funded work have save or retained jobs because of the stimulus, and plan to make larger equipment purchases than those firms without stimulus-funded projects. However, of the firms with stimulus-funded work, only about 36% plan to hire new employees the same percentage as those firms without stimulus-funded work. For the survey results and analysis, click here or visit www.agc.org.
NATIONAL | July 31, 2009
Obama Picks New OSHA Chief
President Obama announced he plans to nominate David Michaels to lead OSHA. Dr. Michaels, an epidemiologist, is currently interim chair of the Department of Environmental and Occupational Health at the George Washington University School of Public Health. If approved, Dr. Michaels would replace acting head Jordan Barab.
NATIONAL | July 23, 2009
New LEED Website Guides Users Credit-by-Credit
A new website, developed by BuildingGreen and sanctioned by the US Green Building Council, helps LEED teams work through the new LEED 2009 process credit-by-credit. It includes clear descriptions of credit requirements, tips to streamline submissions, online calculators, online user forums to research specific credits and much more. The site, www.LEEDuser.com, is available in beta release until the end of September.
NATIONAL | July 23, 2009
FAR Issues Proposed PLA Rulemaking
In response to President Obama's Executive Order 13502 encouraging but not requiring the use of Project Labor Agreements on federal projects, the Federal Acquisition Regulation (FAR) Council has issued a notice of proposed rulemaking, creating new FAR contract clauses to be included in federal contracts. The proposed rule would provide a new FAR Subpart 22.5, Use of Project Labor Agreements for Federal Construction Projects, as well as add a new provision and a new clause pertaining to bid solicitations and contracts when a PLA is required. For more details, visit the AGC of America website, www.agc.org.
NATIONAL | July 23, 2009
Construction Employment Still Taking a Hit
The June numbers, compared to June 2008, are not reassuring. Construction employment rose only in two states North Dakota, up 5%, and Louisiana, up 4%. The hardest hit states were Arizona (-26%), Nevada (-23%), Connecticut (-22%) and Tennessee (-20%). New Jersey lost 24,100 jobs over the 12-month period, a drop of nearly 15%.
NATIONAL | July 23, 2009
Construction Materials Price Up in June
Overall, construction materials prices rose 1% in June, signaling the beginning of another period of rising materials costs. In particular, structural steel prices were up 2.5%, ready-mix concrete rose 0.6% and concrete block rose 0.5%. AGC of America Chief Economist Ken Simonson predicts that steel and concrete prices will run into resistance because of the drop-off in building activity expected for the rest of 2009, but will increase again in 2010.
LOCAL | July 16, 2009
Corzine Signs Misclassification Bill
On July 10, Gov. Corzine signed the worker misclassification bill (A3569) approved by the NJ Senate in May. The legislation makes willful worker misclassification and failure to provide worker's compensation criminal offenses punishable by up to 18 months in prison and $10,000 in fines. In addition, the NJ DOL is required to issue a stop-work order within 72 hours when it determines an employer has knowingly violated the law.
LOCAL | July 16, 2009
Lautenberg Announces $30 Million for NJ Military Construction
In legislation to be considered by the full US Senate, New Jersey would receive more than $30 million for military construction, announced US Senator Frank Lautenberg (D-NJ), a member of the Senate Appropriations Committee. If the bill is approved, $21 million would build a new Armed Forces Reserve Center in Camden, and $9.7 million would go for the Base Civil Engineering Complex of the 108th Air Refueling Wing at McGuire Air Force Base.
LOCAL | July 16, 2009
BCANJ Member to Receive Alliance for Action Eagle Award
The NJ Alliance for Action will present the Ellis S. Vieser Lifetime Achievement Award to Ben Torcivia Sr., founder of Torcon, Inc., of Red Bank and past president of BCANJ. One of five Eagle Awards, the Lifetime Achievement Award will be presented at the 35th annual dinner on October 14, 2009, at the Hyatt Regency New Brunswick.
LOCAL | July 16, 2009
BCANJ Names 2009 Construction Man of the Year
BCANJ will honor Joseph McNamara as the 2009 Construction Man of the Year at the Association's annual gala dinner on October 22, 2009, at The Palace in Somerset. McNamara is Director of the NJ Laborers-Employers Cooperation and Education Trust (LECET) and NJ State Laborers Health and Safety Fund.
NATIONAL | July 8, 2009
E-Verify Confirmed for Federal Contractors
The Obama administration announced that Homeland Security's E-Verify system to determine the legal status of workers will be required for federal contractors beginning Sept. 8, 2009. The E-Verify system had been voluntary, used by a very small percentage of US companies. Now as many as 170,000 firms receiving government business or federal stimulus funds will have to use E-Verify to a) enter the names of new hires, and b) check the status of current employees.
Republican senators, who want to make the program permanent by law, won approval for such an amendment to the Homeland Security budget bill.
A lawsuit brought by the US Chamber of Commerce to halt the E-Verify program is still pending in federal court in Maryland.
NATIONAL | July 8, 2009
SSAs No-Match Program Ends
At the same time it confirmed the E-Verify requirement, the Obama administration officially put an end to the Social Security Administration's program. Fraught with problems and on hold because of lawsuits, the program was designed to target illegal workers whose names and Social Security numbers didn't match their W-2 earning reports.
NATIONAL | July 6, 2009
Immigration Shift: Going After Employers, Not Workers
The Obama administration has announced a key shift in immigration policy, going after employers suspected of hiring undocumented workers rather than raiding workplaces and rounding up suspected illegals. As of last week, US Immigration and Customs Enforcement (ICE) had begun an audit of 652 companies to verify if their employees were eligible to work. This move marks a significant shift from the Bush administration, which pursued high-profile raids that captured hundreds of illegal immigrants. ICE hasn't made clear what punishment the violations might bring; in the case of American Apparel Inc., in Los Angeles, which was told 1,600 workers could be working illegally, ICE appears to be taking a collaborative approach, asking the company to conduct its own investigation into the legal status of its suspected workers.
NATIONAL | July 6, 2009
I-9 Immigration Form Remains Valid
The current I-9 form was scheduled to expire on June 30, 2009, but Homeland Security's Citizenship and Immigration Services announced that employers should continue to use the form for all new hires until the Office of Management and Budget finishes its review of a new version of the I-9.
NATIONAL | July 6, 2009
IRS Issues Audit Guide for Contractors
In late June, the IRS published an Audit Technique Guide for the construction industry, offering help for contractors, subcontractors, commercial project owners and a host of others as they prepare tax audits. The 12-part guide, also to be used by examiners conducting audits of construction-related businesses, contains some valuable information, including a glossary of the terminology used in an audit, and charts of contractor costs per square foot for several types of jobs, including site work, foundations, framing, exterior walls, roofing, interiors, specialties, and mechanical and electrical work. Find the Construction Industry Audit Technique Guide online at:
http://www.irs.gov/businesses/small/industries/article/0,,id=208324,00.html
LOCAL | July 2, 2009
EDA To Invest in Private Energy Projects
The NJ Economic Development Authority has launched a program offering interest-free loans and grants of up to $5 million to businesses that invest in energy-efficient projects. Through the Clean Energy Solutions Capital Investment Loan/Grant program, commercial, industrial and institutional organizations can qualify for 10-year loans, to be used to purchase fixed assets, real estate or equipment. The funds are capitalized through the Regional Greenhouse Gas Initiative's Global Warming Solutions Fund, in partnership with the NJ Department of Environmental Protection. For more information, visit www.njeda.com.
June 2009
LOCAL | June 17, 2009
$82 Million for Security in New Jersey
The federal government is sending more than $82.6 million to New Jersey this year for Homeland Security programs, an 11.5% increase over last year's allotment. About half the money will be spent on equipment, training and security infrastructure in the seven counties closest to New York City, Bergen, Essex, Hudson, Middlesex, Morris, Passaic and Union. Another $25.5 million will be spread among all 21 New Jersey counties, representing a decrease of 8% from last year. The rest of the funds will be divided among the State Police ($7.5 million for emergency management), infrastructure security ($3.6 million), and the Citizen Corps Program ($358,000 to help communities plan for emergencies). Across the country, the federal government is distributing more than $3.1 billion for Homeland Security efforts, an increase of $52 million over last year.
REGIONAL | June 17, 2009
Camden and Philadelphia PATCO Stations To Get $9.6 Million Facelift
The Delaware River Port Authority approved a $9.6 million project to upgrade two Camden and four Philadelphia Port Authority Transit Corporation subway stations. Camden's City Hall stop and the Walter Rand Transportation Center, along with the four stations in Philadelphia, will receive concourse improvements, including state-of-the-art design and engineering to minimize installation, maintenance and operational costs while improving reliability. As part of the Authority's Green Initiative, improved lighting will use low energy and LED light fixtures that require very minimal maintenance. Phase I, which includes the City Hall improvements, could go out for bid late this month, while Phase II is expected to go out for bid in August.
LOCAL | June 17, 2009
Funding Sought for Clean Water and Wastewater Projects
Through the sale of bonds, the New Jersey Environmental Infrastructure Trust is seeking to finance between $800 and $900 million to be used for clean water and wastewater projects in fiscal year 2010. Added to $200 million in federal stimulus funds and $450 million in state funds, this will nearly double the Trust's typical annual program.
LOCAL | June 17, 2009
Former Linden GM Plant to Become Multi-Use Development
The former General Motors site on Route 1 in Linden is slated to become Legacy Square, a 99-acre commercial/industrial/residential development that could bring more than 1,000 new jobs to the area. Construction is expected to begin this summer on the $148 million project, pending approval from the NJ Department of Transportation on intersection improvements the developer, Duke Realty, is required to make.
LOCAL | June 10, 2009
NJ Utilities to Spend Billions on Capital Projects
At a conference on June 2, New Jersey utility executives, electric, gas and water, reported they will spend billions on capital projects over the next five years. Here's the breakdown: PSE&G will invest $6.7 billion, including $1 billion this year; Verizon NJ will spend somewhat less than $500 million per year on FIOS installations; South Jersey Gas will spend $103 million in the next two years on accelerated investments; United Water will invest $179 million from 2010 to 2014 in underground equipment, treatment and facility upgrades, and water storage; New Jersey Natural Gas will spend $71 million on 16 accelerated projects; Elizabethtown Gas will spend $42.5 million this year on distribution and system improvements; and New Jersey American Water has invested $630 million in capital improvements.
LOCAL | June 10, 2009
Energy Stimulus Funds Coming to NJ
Gov. Corzine announced that New Jersey will receive $73.6 million in federal stimulus funds slated for investments in energy efficiency as well as conservation and expansion of renewable energy generation. The projected spending will help meet the Governor's Master Energy Plan to reduce energy consumption by 20% by 2020 and increase use of renewable energy to 30% of the state's consumption by 2020.
LOCAL | June 10, 2009
Development of Former Ford Site in Edison Continues
Secausus developer Hartz Mountain Industries has made the first of two installments of a $1.5 million payment to Edison, and announced it plans to break ground soon on the 98-acre former Ford Motors plant site on Route 1 in Edison. The first phase of the project, a mixed-use redevelopment to be called Edison Town Square, will include a 140,000-square-foot Sam's Club with a gas station. In addition to the cash payment, Hartz has donated 7.5 acres of land to Edison on the site's Vineyard Road border.
NATIONAL | June 10, 2009
Feds Contribute to Camden Development Around Campbell Soup HQ
The US Economic Development Administration is contributing $2.7 million toward sewer line construction in the area that surrounds the Campbell Soup Company headquarters in Camden. The total cost for the sewer project, more than $15 million, was already covered by an agreement among city, county, state and federal governments; the US EDA funding represents the federal share. Campbell broke ground on its $90 million headquarters expansion late last year, part of a broader redevelopment project the company plans in the city where it was founded in 1869. Campbell's redevelopment centers on an office park near the headquarters to attract other companies to the area.
NATIONAL | June 10, 2009
Obama Promises 600,000 Jobs from Stimulus Spending
Frustrated that the $787 billion in stimulus funds is taking so long to make a dent in the country's recession, Pres. Obama promised to ramp up efforts this summer and create or save 600,000 jobs. Federal agencies plan to respond to Obama's push by accelerating spending on 10 major projects, including waste and water systems in rural areas, and maintenance and construction projects at airports, highways and national parks. AGC of America Chief Economist Ken Simonson explains that the delay in getting the stimulus funds working is due in part to the "Buy America" provisions in the American Recovery and Reinvestment Act, which require contractors to obtain manufacturer certification that most of a piece of permanently installed equipment was made in the US. Other delaying factors include the tremendous paperwork and confusing record-keeping required before the feds can dole out the money, and states and communities can hand out contracts.
NATIONAL | June 10, 2009
Federal School Funding Emphasizes "Green Buildings"
A proposed measure passed by the House on May 14 would authorize $6.4 billion in fiscal year 2010 for modernizing, renovating and repairing public schools. The projects would emphasize the use of green building techniques such as green roofs, renewable energy generation, and alternative heating systems like solar, photovoltaic, wind, geothermal and biomass. Specifically barred in the legislation is using the money for building athletic stadiums and administration offices or purchasing carbon offsets. The bill passed 275-115 in the House, but has now been referred to the Senate Committee on Health, Education, Labor, and Pensions.
NATIONAL | June 9, 2009
Yes, Again E-Verify Rule Delayed
Without announcing a reason, the Department of Homeland Security has delayed implementation of the E-Verify rule, supposed to go into effect June 30, until Sept. 8. This is the fourth delay since the rule was finalized in November 2008. The rule will require federal contractors to use the online E-Verify system to verify worker Social Security numbers and immigration status.
May 2009
LOCAL | May 20, 2009
First ARC Tunnel Contract Awarded
BCANJ member Ferreira Construction of Branchburg won a $13.6 million contract to build an underpass at Tonnelle Avenue in North Bergen, the first contract for NJ Transit's $8.7 billion ARC tunnel between New Jersey and New York. The Tonnelle Avenue site marks the spot where the tunnel tracks will go underground.
LOCAL | May 20, 2009
Executive Order Creates South Jersey Economic Development Group
Governor Corzine signed an executive order creating the Atlantic City Regional Implementation Group for Housing and Transportation (AC RIGHT). The group will "coordinate and facilitate" transportation infrastructure and workforce housing needed because of casino development, and will have the authority to coordinate multi-agency and regulator review of projects, among other responsibilities.
LOCAL | May 20, 2009
Rail Line in South Jersey
Last week we told you about NJ Transit's new rail line across North Jersey (see HOT TOPIC for May 14, 2009). This week we move south, as the Delaware River Port Authority announced plans for a new commuter rail line and new stations from Camden to Glassboro. Possible stops could include Woodbury and Pitman, and the Glassboro station will be on or near the Rowan University campus. The State has committed more than $500 million from two transportations funds for the project, estimated at $1.3 billion, and plans to apply for federal funding. The line will be built on existing rail right-of-way; construction will begin in 2010 or 2011.
NATIONAL | May 15, 2009
After Delay, E-Verify May Receive More Funding
The E-Verify deadline was postponed twice to give the Obama administration time to review it. Apparently, the review revealed the program needs more money: The administration asked for an additional $12 million in the 2010 budget for E-Verify, a 12% increase that would bring the total budget to $112 million. At the same time, Homeland Security Secretary Janet Napolitano promised that the department is "committed to making it better" in response to criticism that the system's massive database is full of glitches. The National Immigration Law Center reports that just over 1% (124,000) of the country's employers use E-Verify.
LOCAL | May 14, 2009
Executive Order Mandates $3.6 Billion in AC Transit Projects
Atlantic City's transit plan totals $3.6 billion in road, rail and airport improvements, from the smallest -- a bike path on the Boardwalk -- to the largest, a billion-dollar monorail system. Governor Corzine's executive order will make it all happen. Signed May 14, 2009, the order directs 15 governmental agencies to work together to ensure the projects are built. The Governor also told the South Jersey Economic Development Forum that a combination of private investment and public transportation funds, including highway tolls, would cover the cost of the projects, adding, "Most of them will be financed privately."
LOCAL | May 14, 2009
Rail Line to Cross North Jersey
New Jersey Transit will begin work this spring on a rail line and nine new stations across North Jersey. The 8.3-mile project from Hackensack to Hawthorne is estimated to cost $150 - $200 million and will take about three years.
LOCAL | May 7, 2009
ARC Tunnel on the Fast Track
A call went out from US Secretary of Transportation Ray LaHood to New Jersey Senator Frank Lautenberg on May 7, 2009, announcing that President Obama's proposed 2010 budget includes $200 million for construction of the new rail tunnel under the Hudson. Just as exciting, the budget also recommends the tunnel project for an "Early Systems Work Agreement," signaling a long-term funding commitment from the federal government.
LOCAL | May 7, 2009
New Jersey's First Stimulus Project Breaks Ground
Vice President Joe Biden was on hand in Lodi for the ceremonial groundbreaking that marked the State's first construction project funded by the $787 billion stimulus program approved in February. This first contract, worth an estimated $67 million and projected to create 500 jobs, will widen Route 46 and replace bridges over the Saddle River and Main Street in Lodi. About $48 million comes from stimulus funds.
LOCAL | May 7, 2009
NJ Turnpike Sells Build America Bonds for Stimulus Reimbursement
The New Jersey Turnpike Authority is the first transportation agency in the country to sell Build America bonds and qualify for a 35% reimbursement from the federal government, under the American Recovery and Reinvestment Act. The authority's sale of more than $1 billion in taxable Build America bonds will raise $1.375 billion toward the authority's 10-year, $7 billion capital program, along with $375 million sold in traditional tax-exempt bonds.
NATIONAL | May 4, 2009
Another Delay for E-Verify
Already delayed twice, implementation of the E-Verify rule for federal contractors has been postponed again, this time until June 30, 2009. Thus, contracts and solicitations for bids issued prior to June 30 will not contain the mandate to use the employment verification process. BCANJ will continue to monitor developments.
April 2009
REGIONAL | April 28, 2009
Ellis Island Gets Stimulus Money
The National Park Service released its list of projects slated for $750 million in stimulus funds. In one of the larger allotments, New York's Ellis Island will receive $8.8 million to stabilize the baggage and dormitory building.
REGIONAL | April 28, 2009
Port Authority Takes Over Transit Hub at World Trade Center Site
Construction of the transit hub at the World Trade Center site will now be managed by the Port Authority of New York and New Jersey, rather than by Phoenix Constructors, a joint venture of Bovis Lend Lease, Skanska USA Building, Granite Construction and Fluor Corp. The Port Authority will bid out pieces of the $3 billion PATH station, designed by Santiago Calatrava, to individual contractors. Phoenix Constructors will complete their existing work, and the four members of the consortium can bid on future project elements.
LOCAL | April 22, 2009
Rebuilding the Roads to Revel
The Casino Reinvestment Development Authority has approved $20 million in funding to rebuild the roads that lead to the new Revel Entertainment Group casino. Revel had originally agreed to pay $33 million to widen the narrow streets into the casino, as well as contribute another $33 million for community projects, but now is facing funding shortages because of the credit crisis. In addition to the $20 million from CRDA to fix the roads, $17 million will come from New Jersey Department of Transportation and $4.5 million from Revel. That makes Revel's total pledge $42 million, reflecting compliance with the law that requires Atlantic City casinos to contribute 1.25% of their gross annual revenue for housing construction and economic development projects controlled by the CRDA.
In a separate vote, the CRDA also approved plans to ease congestion along Route 40 and stimulate new casino development at Bader Field.
LOCAL | April 17, 2009
NJM Orders New Operations Center
Private projects may be hard to find these days, but New Jersey Manufacturers Insurance Company is starting construction on its new regional operations center on a 56-acre site in Hammonton. The 146,000-sq. ft., three-story office building will hold administrative offices, a call center, multi-purpose spaces, a large cafeteria, a central utility plant and a retail bank with drive-up ATM. The building will feature energy-efficient cooling, heating and lighting systems, and is expected to be completed by fourth quarter 2010. The building's three-story atrium could eventually interface with a 100,000-sq. ft. office building, planned if NJM decides it needs expanded facilities.
NATIONAL | April 17, 2009
March Shows New Jersey Gained Most Jobs
In state-by-state data released by AGC of America, New Jersey came out ahead, gaining 500 construction jobs in March, more than any other state. Only two other states gained jobs -- Vermont and New Hampshire -- and together those two picked up only 300 jobs. In year-over-year statistics, New Jersey's construction employment is down 10.7% from March of 2008, with a total loss of 18,100 jobs during the period. That puts the state at the bottom end of the top third states, with about two-thirds of the states showing worse job retention, and about one-third doing better.
LOCAL | April 15, 2009
NJ Energy Projects Get Boost
At Governor Corzine's request, New Jersey's State Board of Public Utilities approved $956 million in accelerated energy infrastructure projects from five state utilities. Gov. Corzine encouraged approval of the spending with the hope it will create jobs and stimulate the economy. The largest piece of the pie goes to PSE&G, which will spend $694 million on electric and gas distribution system capital projects.
LOCAL | April 15, 2009
Stimulus Funds for Superfund Sites
More than $100 million in federal stimulus funds will flow into New Jersey for Superfund site cleanup. The 26-acre Cornell Dubilier Electronics site along Bound Brook in South Plainfield is one of three sites that will receive more than $25 million. The other two are the former Roebling Steel site in Florence Township and the Welsbach site in Camden and Gloucester City. As much as $5 million of the federal allocation will help finish the remaining cleanup at the Horseshoe Road Superfund site in Sayreville, which has seen more than two decades of federal EPA work to remediate pollution damage from the former Atlantic Development Corp. and a pesticide and chemical drum dump. The remaining $20 million or so will go to Superfund site cleanup in Vineland, Morganville, Galloway Township and Pleasantville.
LOCAL | April 15, 2009
Stimulus Funds Fly Into Morristown Airport
Morristown Airport will receive $5 million from American Recovery and Reinvestment Act funding to help pay for runway upgrades and safety improvements. The money is part of $1.1 billion allotted to the Federal Aviation Administration, which will distribute it to as many as 3,400 US airports.
LOCAL | April 8, 2009
Oyster Creek Licensed for Another 20 Years
Lacey Township's Oyster Creek nuclear reactor, the country's oldest, will operate for another two decades. Its next 20-year license was approved by the US Nuclear Regulatory Commission and is expected to be granted this week. By extending the license, the NRC upheld the recommendation of the Atomic Safety & Licensing Board and rejected the appeal filed by a coalition of environmental groups that had opposed Oyster Creek's continued operation. Chicago-based Exelon Corporation owns the nuclear reactor, which went online 40 years ago.
LOCAL | April 8, 2009
Somerville Train Station Upgrades On Track
Groundbreaking in late March at the Somerville train station signaled the start of NJ Transit retrofits at 130 rail and light rail stations to bring them into compliance with the Americans With Disabilities Act within the next year to 18 months. The Somerville station will get new platforms level with train doors, along with two service elevators adapted for customer use to provide access from the pedestrian tunnel to the street and platforms. The $26 million Somerville "accessibility" project is being funded by the American Recovery and Reinvestment Act.
LOCAL | April 8, 2009
Coming Soon: Trans-Hudson Train Tunnel Construction
Plans for a new tunnel under the Hudson into Manhattan were first proposed 15 years ago. Now, with funding lined up if not all received, NJDOT Commissioner Stephen Dilts says construction will start this spring on the 10-year project. New Jersey and the Port Authority of New York & New Jersey have committed $5.7 billion to the project. The state expects the federal government to provide $3 billion, and has already received some of it. In March, advertising for bids was approved on the first two construction contracts, which include an underpass in North Bergen adjacent to where the two rails leading into the tunnel will descend. Ultimately, the rail tunnel will increase the number of rush-hour trains traveling from New Jersey to Manhattan from 23 to 48, and provide direct service into Manhattan on five lines. Construction during the 10 years is expected to sustain 6,000 jobs.
LOCAL | April 3, 2009
Rutgers Approves Two New Dorms
Rutgers University has approved a $272 million project to build two dorms on the Livingston and Busch campuses, to house 2,000 undergraduate students. Construction should begin early next year, with the dorms open to residents for the fall of 2011. With 10,600 students applying for the 8,000 available rooms next years, Rutgers will be housing undergrads in hotel rooms for the second consecutive year.
NATIONAL | April 2, 2009
Construction Declines Again, But Not As Much
Construction news continues to be bad, but the US Commerce Department reports it wasn't as bad in February as expected. When the latest numbers were released, construction activity had dropped 0.9% -- less than the 1.5% decline predicted. And non-residential construction actually rose 0.3% in February, good news after the 4.3% drop in January that reflected the biggest drop in 15 years. While economists generally agree construction hasn't hit bottom yet, they acknowledge the pace of the decline is slowing.
March 2009
LOCAL | March 31, 2009
AirTran Airways Flies Into AC Airport
Beginning June 11, 2009, AirTran Airways will provide non-stop daily service between Atlanta and the Atlantic City International Airport, a result of the efforts of the South Jersey Transportation Authority to attract new air service. In addition, the airport is undergoing a number of enhancements, including a $23 million Federal Inspection Station for international flights, a $30 million Airport Rescue & Fire Fighting Station and a $10 million Airfield/Apron Expansion.
LOCAL | March 31, 2009
State Launches Economic Recovery Website
As states receive federal stimulus funds, the American Recovery and Reinvestment Act requires they post key information online, including funding criteria and the process for making funds available. Therefore, the Governor's Office has launched an economic recovery website: www.recovery.nj.gov. Visitors to the site can tap into Frequently Asked Questions, explore funding opportunities, follow the latest news on stimulus funds and even report fund mismanagement.
LOCAL | March 30, 2009
AC Convention Center Features Largest Solar Array
It's the largest installed solar panel array in the US, and maybe in all of North America. Completed in December and officially dedicated in March, Atlantic City's Convention Center has a rooftop solar power system comprised of 13,486 mono crystalline solar panels, capable of pumping out 26% of the Convention Center's annual electrical consumption. At peak capacity, the system produces 2.4 megawatts, equivalent to the energy used by 280 homes.
LOCAL | March 21, 2009
Xanadu Opening Delayed
No new date has been set, according to the Star-Ledger, but Xanadu will not celebrate its Grand Opening in August, as previously planned, because Xanadu Mezz Holdings LLC, a lender and "non-bankrupt affiliate" of Lehman Brothers, has refused to fund its share of the construction loans. Xanadu officials plan to file suit against the lender. In addition, Cabelas, the hunting and fishing outfitter and a major anchor of the complex, has delayed its opening until Spring 2010, and the developer of an 18-screen cinema is in financial default.
LOCAL | March 10, 2009
Utilities to Accelerate $1.3 Billion in Capital Investments
The New Jersey Alliance for Action reports, "NJ utilities will accelerate plans to spend nearly $1.3 billion on capital projects in response to Governor Jon Corzine's desire to stimulate utility providers to invest and create jobs." The projects represent a projected four-year plan shrunk into a two-year time span. The estimated breakdown is as follows: PSE&G, $888 million; South Jersey Gas, $120 million; Jersey Central Power & Light, $98 million; New Jersey Natural Gas, $71 million; and Atlantic City Electric, $62 million.
LOCAL | March 9, 2009
WTC Work Will Add 26,000 Jobs
The Port Authority of New York and New Jersey projects that more than 26,000 jobs and $3.7 billion in income will be generated over the next seven years by construction at the 16-acreWorld Trade Center site. The plans include construction of office towers, a September 11 memorial (requiring an estimated 8,210 workers) and a transit hub (requiring an estimated 8,420 workers). In addition, developer Larry Silverstein says 30,000 jobs would be created by the construction of three other office towers planned for the site by private owners. Work proceeds at the site even as the economic crisis shuts down projects in other parts of New York City.
NATIONAL | March 4, 2009
Silver Lining: Materials Are Available, Prices Are (Somewhat) Lower
Concrete and steel were expensive and hard to find 18 months ago, but now they're readily available, and steel, at least, costs less, according to a report in the Arizona Daily Star. Steel prices are down 6% to 7% -- not as far as they soared, but the good news is that steel is available, primarily because the demand from China has dropped abruptly. The availability also means steel prices aren't nearly as volatile as they were. During the building boom, a structural steel bid might be good only for 24 hours. Concrete prices haven't dropped significantly, mainly because the price of its key ingredient, cement, hasn't come down. But cement, which the US was forced to import in 2007, is now being produced again domestically in plentiful supply.
February 2009
LOCAL | February 24, 2009
NJ Schools Development Authority Posts Projects
Available on the SDA website is a list of projects slated for 2009, along with the anticipated start date (by quarter). To download the list, visit the SDA website at http://www.njsda.gov/Schools/SchoolsList/PDF/2009_Projects.pdf
NATIONAL | February 20, 2009
AGC Predicts 2 Million Jobs Saved With Stimulus
AGC of America's Chief Economist, Ken Simonson, and George Mason University's Stephen Fuller, an AGC consultant, predict that the stimulus package's $135 billion in construction and infrastructure will create or save nearly 2 million jobs during the next two years. The two economists broke the numbers down like this: 650,000 construction jobs saved or created; 300,000 jobs in related fields saved or created; and 970,000 jobs created to support the investments. Simonson also said that because of the construction package, personal earnings would increase by $75 billion, adding $230 billion to the gross national product.
NATIONAL | February 20, 2009
Another Record-Breaking Month for Unemployment Figures
The unemployment news only gets worse. For the fourth consecutive week, unemployment figures reached record levels. In the first week of February, the number of unemployed workers receiving unemployment benefits reached almost 5 million, and new jobless claims surpassed 600,000, bringing the percentage of unemployed workers to 7.6%, according to the AP Wire Service. The numbers were higher than originally projected, and the Federal Reserve reports unemployment will continue to rise for the rest of 2009, reaching 8.5% to 8.8 %.
In related news, Reed Construction Data announced that commercial construction starts in January fell 23% over January of last year. Institutional starts declined 28%, offset by an "exceptionally high" December total.
NATIONAL | February 17, 2009
President Signs Economic Stimulus Plan
On February 17, 2009, President Obama signed the American Recovery and Reinvestment Act of 2009, which includes approximately $140 billion in construction spending and $8.8 billion for schools. The construction funds will mostly be distributed to state governments, and the school funds will only be allocated for renovation, modernization and repair, no new construction. In addition, the bill imposes a one-year delay in implementation of the 3% withholding tax on federal projects. Davis-Bacon, the federal prevailing wage law, applies to all funds. For updates, visit AGC of America at www.agc.org/stimulus.
LOCAL | February 17, 2009
Woodbridge Plans "Green" Industrial Corridor
In January, the Woodbridge Town Council approved a plan to develop an ecologically friendly industrial corridor on 107 acres of land that runs between the New Jersey Turnpike, the NJ Transit North Jersey Coast Line and the Woodbridge River. The vision, still a few years from reality, is to attract businesses that focus on developing and manufacturing "green" products. Plans also call for a green-business "incubator" to help foster new companies, a solar array that could feed electricity to the area, and even an onsite partnership with an educational institution.
NATIONAL | February 6, 2009
President Overturns Ban on Federal PLAs
As promised during his campaign, President Obama issued an executive order on February 6, 2009, allowing project labor agreements as an option on federally funded projects of $25 million or more. In addition, the executive order could eventually expand the use of PLAs, as it calls for a recommendation in six months from the Office of Management and Budget whether broader use of PLAs would help "promote the economical, efficient and timely completion" of federal and federally funded projects. The order overturns the ban imposed by former President George W. Bush, and reinstates much of the policy in place during the Clinton administration.
NATIONAL | February 6, 2009
Construction Unemployment More than Double the National Average
The national unemployment figure has climbed to 7.6%, but in construction and other fields the number is much worse. With 1.7 million construction workers jobless, the rate is 18.2%. The leisure and hospitality industry rate is 11.5%, with nearly 1.5 million people out of work.
NATIONAL | February 5, 2009
State E-Verify Laws Challenge Businesses
While the US government lagged behind, 12 states have enacted laws since 2006 requiring businesses to check employee eligibility via the Department of Homeland Security's E-Verify system. As a result, about 107,000 of the country's 7.4 million employers use the system, up from 11,000 in 2006, according to DHS. The effect has been to highlight the flaws in the E-Verify database, including giving preliminary rejections to workers who should be approved. When Intel, one of the largest US employers, had 143 rejections (12%) of 1,360 workers hired between January and July 2008, it challenged DHS, and all the workers were found to be legal US residents. Lawsuits are pending against state regulations in Arizona, Oklahoma and Rhode Island. The US Chamber of Commerce sued DHS in December to block the proposal requiring federal contractors to use E-Verify, which resulted in an extension of the deadline to February 20, 2009. However, the House version of the federal economic stimulus package requires use of E-Verify by any company receiving stimulus funds.
January 2009
NATIONAL | January 26, 2009
Interactive Map Reveals New Jersey's Slice of the Economic Stimulus Package
The Center for American Progress has created an interactive map of the US, revealing how much each state is projected to receive from the federal economic stimulus package, scheduled for a Senate vote this week. Click here and click on New Jersey, which is slated to receive $15.8 billion. You'll find a brief description of how the monies will be used, and you can click on other states to see how our state compares.
NATIONAL | January 22, 2009
AGC Advocate Tells Congress of Economic Stimulus Impact on Construction
George Mason University economist Stephen Fuller, speaking on behalf of AGC of America, told Congress on Thursday, January 22, 2009, that, if implemented now, the proposed federal economic stimulus package would provide more than 600,000 new construction jobs by the end of 2010. Fuller also told the House Committee on Transportation and Infrastructure that another 300,000 would be created in industries that supply construction, and 930,000 jobs across other industries.
NATIONAL | January 15, 2009
E-Verify Rule Applicability Extended
As we announced in our National Labor News insert in the December 2008 Update, the federal government issued a final rule on the use of the E-Verify system to determine worker employment eligibility. The rule was to go into effect January 15, 2009, but that date has now been extended to February 20, 2009, because of a lawsuit filed by the US Chamber of Commerce, which seeks to have the rule declared invalid. A US District Court will hold expedited hearings on the challenge.
NATIONAL | January 15, 2009
Construction Spending in the Proposed Economic Stimulus Bill
According to reports from ENR and AGC of America, construction spending in the proposed federal economic stimulus bill could exceed $160 billion, with an approximate breakdown as follows:
Transportation -- More than $48 billion, including $30 billion for highway and bridge construction, $9 billion in mass transit systems (rail and bus), and the rest for Army Corps of Engineers and US Forest Service projects.
Housing/HUD -- More than $13 billion for public housing, block grants and other community development projects.
Schools -- $20 billion for K-12 and higher education facilities
Other Buildings -- More than $10 billion on federal buildings, Fish and Wildlife Service, National Park Service and other federal projects.
Defense/Veterans -- More than $11 billion for facilities improvements, including barracks, medical centers, troop housing, childcare centers, base realignments and closings.
Energy -- $36 billion for grid investment, renewable energy loan guarantees, energy grants and loans, home weatherization assistance and carbon-reducing measures.
Health and Human Services -- Nearly $4 billion on community and public health projects.
Water and Environment -- More than $14 billion for EPA projects and others.
For more information, visit www.enr.com and www.agc.org
LOCAL | January 13, 2009
Governor Calls for Moratorium on COAH Fees
As we announced in B-#09-09, Governor Corzine has called for a one-year moratorium on the COAH 2.5% developer's fee, as well as an exemption for projects that were in the pipeline before the fee was instituted. Please click here to read the bulletin. We will continue to update you on this issue.
LOCAL | January 13, 2009
NJ State College Projects Ready for Stimulus Package Worth $500 Million
The New Jersey Alliance for Action reports that New Jersey's nine state colleges and universities have "immediately ready" $500 million in facilities improvement projects that could benefit from national and state economic stimulus packages. According to the NJ Association of State Colleges and Universities, these projects could "create or help support about 10,000 new jobs in the region."
NATIONAL | January 2, 2009
School Construction Part of Obama's Stimulus Plan
A study of New York City schoolchildren found they score lower in math and reading if they're stuck in crowded classrooms. President-elect Obama proposes to start fixing that by providing money for school repairs, renovation and construction in his economic stimulus package. No one knows an exact figure yet, but Obama has said that schools and roads would benefit from an immediate infusion of $25 billion. According to the American Federation of Teachers, schools need more than 10 times that amount in maintenance, new construction, renovation and retrofitting for computer technology. The National Education Association says the estimate is much higher, more like $360 billion. At the moment, even if the federal government contributes funds, financially strapped state and local governments can't begin to match them.
NATIONAL | January 2, 2009
MIT Announces Top Materials of 2008
Not all the news is bad. MIT's Technology Review reports 2008 saw the strongest material ever tested -- graphene, carbon sheets that are a mere one atom thick. It's an exciting development for the wireless world, as graphene can be used for things like ultrahigh-frequency transistors. In other technology news, nanoparticles shaped like bacteria can efficiently deliver drugs to the right place in the body at the subcellular level (although scientists are also studying the side effects, as carbon nanotubes could prove carcinogenic in lung tissue). Carbon nanotubes were also used to create a stretchy electronic circuit that could evolve into computers that wrap around furniture (picture thin, transparent, flexible speakers encircling your head as you relax in your favorite lounge chair). Scientists in 2008 invented a new ceramic that's tougher than nacre, the material that lines abalone shells; it could ultimately be used for buildings and vehicles. Check out all the cool stuff at www.technologyreview.com.
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