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TradeWinds

Industry News List

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Only 9 Out Of 337 Metropolitan Areas Add Construction Jobs Between January 2009 And 2010 As Industry Pain Continues
Phoenix Loses Most Jobs While Steubenville-Weirton, Ohio-West Virginia Experience Largest Percentage Decline, Eau Claire, Wisconsin Has Largest Increase in Construction Employment

Construction employment continued to shrink in most American communities as 313 out of 337 metro areas lost construction jobs between January 2009 and January 2010 according to a new analysis of federal employment figures released today by the Associated General Contractors of America. The figures underscore just how hard hit the construction industry has been nationwide, association officials noted.

“It’s difficult to imagine that many regions will bounce back when so many construction workers are unemployed,” said Ken Simonson, the association’s chief economist. “Worse, with virtually every city suffering significant construction job losses, there’s nowhere to hide from what is clearly a construction depression.”

Simonson noted that Phoenix, Arizona again lost more construction jobs (27,600) than any other city in America. Steubenville, Ohio and Weirton, West Virginia, experienced the largest percentage decline in construction employment (44 percent, 1,600 jobs), followed by Grand Junction, Colorado (34 percent, 3,400 jobs); Las Vegas, Nevada (32 percent, 24,500 jobs); Napa, California (32 percent, 1,100 jobs); and Santa Cruz, California (31 percent, 1,100 jobs.)

Eau Claire, Wisconsin added the most construction jobs (500) between January 2009 and January 2010, and experienced the largest percentage increase (23 percent) Simonson noted. Other cities adding construction jobs included Ithaca, New York (9 percent, 100 jobs); Michigan City, Indiana (6 percent, 100 jobs); Waterbury, Connecticut (5 percent, 100 jobs); and Grand Forks, North Dakota and Minnesota (5 percent, 100 jobs).

The construction economist noted that 230 metropolitan areas experienced double-digit percentage decreases in construction employment while no city experienced a double-digit increase in construction employment. Meanwhile, 18 cities nationwide lost more than 10,000 construction jobs between January 2009 and 2010.

Simonson said the figures underscore the need for new investments in infrastructure as well as new tax incentives designed to stimulate private sector demand. “If we can’t find a way to keep what’s left of the industry working, construction job losses are only going to get worse.”

View construction employment by state and by ranking.

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Pennsylvania Council of the Society of American Registered Architects Announces the 7th Annual Professional Design Awards

The Pennsylvania Council of the Society of American Registered Architects (PA SARA announces the 7th Annual Professional Design Awards (PDA) competition.

This competition is open to the work of all registered architects and is not limited geographically. The entrants do not compete against each other. The jurors judge each entry as to its unique architectural worthiness. The entry forms and additional information can be found on our website, www.sararchitects.org/pennsylvaniacouncil.aspx

The banquet and presentation of awards is to be held at the Glen Foerd mansion in Philadelphia on August 12, 2010.

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California’s Construction Employment And Spending Will Take Years To Return To Pre-Bust Levels, Business Economist Predicts
Bleak Construction Outlook Provides Economic & Environmental Reasons to Change Off-Road Diesel Emissions Rule, Construction Workers, Contractors, Officials Note

California’s construction industry will build fewer projects and employ fewer people compared to its mid-decade peak through at least 2015, a leading business economist told staff of the state’s Air Resources Board today. As a result, the financially hard-pressed industry will generate fewer emissions for at least the same period, giving California time to revise its emissions standards for off-road diesel equipment and still meet and exceed its environmental goals, construction officials explained.

“The state’s construction industry will remain a shadow of itself for years to come,” said Dr. Lynn Reaser, president of the National Association of Business Economics and chief economist for Point Loma Nazarene University. “This means fewer construction projects, fewer pieces of construction equipment in use and, ultimately, fewer emissions.”

Even if the state’s construction industry stabilized and quickly began to grow, Dr. Reaser predicted that the industry would employ fewer than 700,000 people in 2015, compared to more than 900,000 in 2006. Construction spending would also remain well below peak levels, reaching about $60 billion in 2015, compared to nearly $100 billion in 2006.

Contractors, construction workers and construction officials pointed to Dr. Reaser’s outlook as they urged the state’s Air Resources Board to reconsider its current efforts to force businesses to retrofit, repower or replace billions of dollars worth of off-road diesel equipment. They added that the latest analysis of the state’s data confirms that off-road diesel emissions will be below the state’s goal for years to come.

“The evidence is overwhelming: contractors can’t afford to comply with the current rule and the state doesn’t need it,” said Michael Kennedy, general counsel for the Associated General Contractors of America during a public hearing convened by the Board’s executive officer. “Given the choice between clean air and more jobs, or clean air and fewer jobs, it’s pretty clear which way the state should go.”

Kennedy urged the Board’s staff to delay the implementation of certain fleet average requirements until at least 2015. He noted that by then a new generation of cleaner construction equipment will be available that won’t require costly and potentially unsafe retrofits.

View Dr. Reaser’s full presentation to the California Air Resources Board.

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Construction Employment Declines In Every State, D.C. Between January 2009 And January 2010; 38 States, D.C. See Double-Digit Drops
California Loses the Most Construction Jobs, Nevada Has Highest Percentage Decline & North Dakota Loses the Least Jobs, Has Smallest Percentage Decline in Construction Employment

The construction workforce was smaller in every state and the District of Columbia in January 2010 than it was just 12 months earlier, according to a new analysis of federal data released today by the Associated General Contractors of America. The data indicated just how widespread the construction downturn is, association officials said, noting that 38 states and D.C. experienced a double digit percentage drop in construction employment.

“Construction employment is dropping everywhere and plummeting almost everywhere,” said Ken Simonson, the association’s chief economist. “Looking at this data, it is quite clear that the construction industry has yet to hit bottom.”

Simonson noted that California lost more construction jobs, 128,700, while North Dakota lost the least jobs, 200, over the past twelve months. The five states with the largest percentage decline in employment were Nevada (29.9 percent); Arizona (26 percent); Colorado (22.2 percent); Idaho (21 percent); and Florida (20.4 percent). Meanwhile, North Dakota (1 percent); Nebraska (4.1 percent); Alaska (4.2 percent); South Dakota (5.9 percent); and Arkansas (6.2 percent) experienced the smallest decline in construction employment.

Even the monthly employment changes reflect the tough construction conditions, said Simonson, noting that 31 states lost construction jobs between December and January. He added that most of the states adding jobs for the month lost jobs in December, often more than they gained back in January. The economist said this suggested the monthly data was affected by unseasonable weather conditions that also are likely to affect February’s state employment figures.

Association officials cited the new state employment data in urging the Senate to pass a ten month extension to the nation’s surface transportation program and for the administration to accelerate stimulus-funded construction projects. “As privately-funded construction activity continues to decline, federal investments in infrastructure are often the difference between a job and unemployment for what’s left of the industry.”

View the state-by-state employment data.

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Continued Weakness in Housing Market Prompting Shift Away from High-end Kitchen and Bath Features
Homeowner preferences lean to energy efficiency and simplicity in design

Without the rapid appreciation in home values seen between 1995 and 2005, design of kitchens and bathrooms has recently been somewhat more modest. Functionality is now preferred to more and larger kitchens and bathrooms within U.S. homes. Households are placing a premium on products and features that promote energy efficiency, and adaptability in the use of space for seniors and those with accessibility concerns.

Residential architects continue to report declining business conditions, indicating that the housing market is not yet entering a full recovery phase. These findings are from the American Institute of Architects (AIA) Home Design Trends Survey for the fourth quarter of 2009, which focused specifically on kitchen and bathrooms.

“The general consensus is that homes will continue to be smaller on average than they were in the past decade,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “But since kitchens remain the nerve center of the home, doing more with less space is a key consideration. Integrating kitchens with family space remains a design priority, as does including areas devoted to recycling, pantries, computer workstations, and spaces devoted to recharging laptops, cell phones and PDAs.”
Popular kitchen products and features*               
2009               
2008
Recycling center:                                           
52%                
48%
Larger pantry space:                                      
47%                
50%
Renewable flooring materials:                      
46%                
54%
Renewable countertop materials:                 
46%                
49%
Computer area / recharging stations            
43%                
48%
Integration with family space:                       
41%                
40%
Drinking water filtration systems:                 
30%                
31%
Adaptability / universal design:                     
28%                
32%
Double island:                                                
20%                
19%

* Index score computed as % of respondents reporting increasing minus those reporting decreasing popularity

Baker added, “Homeowners are moving away from glitzy features such as steam showers and towel warming drawers/racks, and instead looking for water-saving toilets, radiant heated flooring and LED lighting options to manage utility costs.”

Popular bathroom products and features*
2009               
2008
Water saving toilets: 
63%                
57%
Radiant heated floors:
52%                
50%
Accessibility / universal design:                    
50%                
52%
LED lighting:               
49%                
41%
Doorless showers:     
47%                
50%
Hand showers:           
36%                
45%
Linen closet / storage:
29%                
25%

* Index score computed as % of respondents reporting increasing minus those reporting decreasing popularity

Housing market business conditions
AIA Home Design Survey Index for Q4 2009 (any score above 50 is positive

  • Billings: 32 (down from 38 in Q3 2009)
  • Inquiries for new projects: 45 (down from 46 in Q3 2009)

“It’s still too early to think the residential market has fully recovered, but there are two encouraging signs – overall business conditions are far better than they were a year ago at this time, and we are seeing improvement in those housing sectors that need to lead a broader improvement in the housing market: remodeling and alterations of existing homes, and at the entry-level of the new construction market.” said Baker.

Specific construction segments (index score computed as % of respondents reporting improving minus those reporting weakening conditions)

  • Kitchen and bath remodeling: 28
  • Additions / alterations: 21
  • First-time buyer / affordable home market: -4
  • Move-up home market: -31
  • Custom / luxury home market: -44
  • Townhouse / condo market: -46
  • Second / vacation home market: -71

About the AIA Home Design Trends Survey
The AIA Home Design Trend Survey is conducted quarterly with a panel of 500 architecture firms that concentrate their practice in the residential sector. Residential architects are design leaders in shaping how homes function, look, and integrate into communities and this survey helps to identify emerging trends in the housing marketplace. Business conditions are also monitored on a quarterly basis. Future surveys will focus on overall home layout and use (June 2010) specialty rooms and systems (September 2010) and community design trends (December 2010).

About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org

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Construction Unemployment Rate Hits 27.1 Percent As Another 64,000 Construction Workers Lost Jobs In February 2010
With Nearly 2 Million Construction Jobs Lost Since December 2007, Construction Sector Continues to Drag Down Overall Employment Figures

The construction unemployment rate jumped to 27.1 percent and construction employment dropped to a 14-year low as another 64,000 construction workers lost jobs in February, according to federal employment figures released today. The economy would have added jobs had it not been for the declines in construction employment for the third time in four months, the Associated General Contractors of America noted.

“While the broader economy may be recovering, the construction industry continues to decline at an alarming rate,” said Ken Simonson, the association’s chief economist. “If these trends don’t change soon, millions of American families will continue to suffer.”

Simonson noted that industry’s job losses in February were consistent with the prior six months and not mainly attributable to exceptionally bad weather. He added that construction unemployment is at the highest level recorded since the federal government began making the data available in 1976. And he noted that nonresidential construction experienced significantly more job losses than the residential sector in February, 53,500 jobs lost versus 10,600.

Overall declines in construction activity, however, have cost 2.2 million construction workers their jobs since industry employment peaked in June 2006, a 28 percent drop, Simonson noted. Construction has accounted for 1,936,000 of the 8,425,000 nonfarm payroll job losses since the recession began in December 2007, or 23 percent of the total, even thought the industry employs only 4.3 percent of all workers, he added.

The construction economist noted that job losses appeared widespread across construction sectors, with nonresidential specialty trade contractors experiencing the largest monthly decline of 1.7 percent. He noted that even heavy and civil engineering construction, the sector most likely to be boosted by stimulus funded projects, experienced a 1.1 percent monthly employment decline.

“The industry has gone from being a symptom of our economic problems to a victim of them,” said Stephen E. Sandherr, the association’s chief executive officer. He noted that while the current Jobs Bill prevents declines in federal highway funding, it does little to boost overall infrastructure investments. “Until we see meaningful increases in demand for new infrastructure and private sector construction projects, our economy will continue to suffer.”

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The AIA Elevates 134 Members and 11 International Architects to the College of Fellows
AIA Fellowship Recognizes Significant Contributions to Profession of Architecture and Society

The 2010 Jury of Fellows from the American Institute of Architects (AIA) elevated 134 AIA members to its prestigious College of Fellows, an honor awarded to members who have made significant contributions to the profession.

The 2010 Fellows will be honored at an investiture ceremony at the 2010 National AIA Convention and Design Exposition in Miami.

The Fellowship program was developed to elevate those architects who have made a significant contribution to architecture and society and who have achieved a standard of excellence in the profession. Election to fellowship not only recognizes the achievements of architects as individuals, but also their significant contribution to architecture and society on a national level.

2010 Jury of Fellows
Allan W. Kehrt, FAIA, Chair, KSS Architects LLP, Princeton, N.J.; Henry C. Alexander, Jr. FAIA, Rizo, Carreno & Partners, Coral Gables, Fla; Jeffrey A. Huberman, FAIA, Gantt Huberman Architects, PLLC, Charlotte, N.C.; Paula J. Loomis, FAIA, US Army Corps of Engineers, Norfolk, Va.; Robert D. Loversidge, FAIA, Schooley Caldwell Associates, Columbus, Ohio; Gregory S. Palermo, FAIA, Iowa State University, Ames, Iowa and Jim W. Sealy, FAIA, Jim Sealy Architect/Consultant, Dallas.


2010 Fellows

Out of a total AIA membership of nearly 83,000, there are fewer than 2,872 distinguished with the honor of fellowship and honorary fellowship. The elevation to fellowship is conferred on architects with at least 10 years of membership in the AIA in one or more of the following nomination categories:

1. Promoted the aesthetic, scientific, and practical efficiency of the profession

2. Advanced the science and art of planning and building by advancing the standards of architectural education, training and practice

3. Coordinated the building industry and the profession of architecture through leadership in the AIA and other related professional organizations

4. Advanced the living standards of people through an improved environment

5. Made the profession of ever-increasing service to society

You can see a list of these architects with pictures here: http://www.aia.org/practicing/awards/AIAB082298

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Significant Drop in Architecture Billings Index
Tight credit markets and weak demand for new projects continue to be main challenges for design and construction industry

Beginning its third year of negative conditions, the Architecture Billings Index (ABI) had a drop of almost three points in January. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lag time between architecture billings and construction spending. The American Institute of Architects (AIA) reported the January ABI rating was 42.5, down sharply from a revised reading of 45.4 in December. This score indicates a continued decline in demand for design services (any score above 50 indicates an increase in billings). The new projects inquiry score was 52.5, down more than seven points.

* Every January the AIA research department uses a procedure from the Department of Commerce that re-estimates ABI data based on seasonal patterns, resulting in a recalibration of recent figures.

“Projects are being delayed or cancelled because lending institutions are placing unusually stringent equity requirements on new developments. This is even happening to financially sound companies with strong credit ratings,” said AIA Chief Economist Kermit Baker, PhD, Hon. AIA. “This serious situation is being compounded by a skittish bond market, decreased tax revenues for publicly financed projects and declining property values – all which serve as deterrents for construction activity. Until these factors are resolved, the design and construction industry -- which accounts for roughly 10 percent of GDP and is facing unemployment figures in excess of 20 percent -- will continue to face deteriorating market conditions.”

Key January ABI highlights:
  • Regional averages: Midwest (48.0), Northeast (45.7), South (41.32), West (40.5)
  • Sector index breakdown: multi-family residential (50.1), commercial / industrial (44.9), institutional (43.1), mixed practice (40.3)
  • Project inquiries index: 52.5

About the AIA Architecture Billings Index
The Architecture Billings Index is derived from a monthly “Work-on-the-Boards” survey and produced by the AIA Economics & Market Research Group. Based on a comparison of data compiled since the survey’s inception in 1995 with figures from the Department of Commerce on Construction Put in Place, the findings amount to a leading economic indicator that provides an approximately nine to twelve month glimpse into the future of nonresidential construction activity. The diffusion indexes contained in the full report are derived from a monthly survey sent to a panel of AIA member-owned firms. Participants are asked whether their billings increased, decreased, or stayed the same in the month that just ended. According to the proportion of respondents choosing each option, a score is generated, which represents an index value for each month. The regional and sector data is formulated using a three-month moving average.

About The American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org

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Turner Partners Architecture, LP Announces its Transition to Turner Duran Architects, LP.

 

 

R Gregory Turner AIA LEED AP   Jack Duran

Turner Partners Architecture, LP of Houston, Texas is pleased to announce its transition to Turner Duran Architects, LP. The name change recognizes the contribution of Jack Duran to the firm’s successes, and reflects his increased role in the company’s operations. Turner and Duran are the senior partners in the firm, which specializes in projects in the institutional and corporate facilities areas.

Turner Duran celebrated its silver anniversary in 2009, marking 25 years since its founding in Houston. The business has seen consistent growth through the intervening years, and now ranks among the top firms in Texas, particularly in the Worship/Cultural category, according to McGraw-Hill’s Texas Construction magazine.

Recently completed projects include the Notre Dame Catholic Church in Houston, Seabrook United Methodist Church, the BP Americas Child Development Center, the St. Agnes Academy Center for the Sciences, and many others throughout southeast Texas.

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New PPG white paper helps architects, owners evaluate coatings warranties
Document covers terms, conditions, performance issues

PPG Industries (NYSE:PPG) has published a new white paper that helps architects, specifiers, consultants and building owners evaluate and compare extrusion coatings warranties from architectural coating suppliers.

The six-page document examines warranty terms and conditions, and details performance variables such as film integrity, weathering and corrosion resistance as they relate to industry-standard specifications from the American Architectural Manufacturers Association (AAMA) and Qualicoat.

Henry L. Lowman, PPG global director of extrusion coatings, said the white paper helps building professionals thoroughly understand warranty issues so they can more effectively protect their coatings investment.

“The metal coating industry is constantly evolving and there are many suppliers in different parts of the world issuing different kinds of warranties,” he explained. “This document will help people who buy metal coatings ask the right questions and negotiate the right warranty terms before they commit to a purchase that can costs millions of dollars.”

For more information, or to download a copy of the white paper, visit www.ppgideascapes.com or call 1-888-PPG-IDEA.

About PPG
Pittsburgh-based PPG is a global supplier of paints, coatings, optical products, specialty materials, chemicals, glass and fiber glass. The company has more than 140 manufacturing facilities and equity affiliates and operates in more than 60 countries. Sales in 2008 were $15.8 billion. PPG shares are traded on the New York Stock Exchange (symbol: PPG). For more information, visit www.ppg.com.

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Garland/DBS awarded US Communities Government Purchasing contract

Garland/DBS, Inc. has been awarded a contract for Roofing Supplies and Related Products and Services by Cobb County, Georgia, which will be administered as an offering within the U.S. Communities Government Purchasing Alliance™ program nationwide. A jointly owned subsidiary of The Garland Company, Inc., a full-service roofing manufacturing, distribution, and service organization, and Design-Build Solutions, Inc., an innovative building maintenance, repair, and restoration general contractor, Garland/DBS, Inc. is headquartered in Cleveland, OH. Under the terms of this nationally solicited and competitive contract award, participating agencies of U. S. Communities will be able to purchase materials and services from the entire Garland/DBS, Inc. catalog at the best available government pricing.

Cobb County, Georgia, initiated the solicitation as an Invitation To Bid (ITB) in May, 2009. Seven organizations responded to the bid, of which four were deemed responsive and responsible to requirements that included the ability to distribute and install products and deliver services nationwide. Garland/DBS, Inc. was ultimately awarded the contract based on the lowest price offer.

Founded in 1895, the Garland organization has evolved from being a local manufacturer and distributor of oils, greases, and paints to a worldwide leader in manufacturing high-performance roofing and building maintenance systems for the commercial and institutional markets. Garland is a one hundred percent employee-owned organization with one of the lowest warranty adjustment rates in its industry. The company strives to ensure performance-based outcomes by offering an integrated suite of products and services directly to public institutions through its network of over 200 locally based employee-owner field representatives throughout the United States, Canada, and the United Kingdom.

Under the terms of its U.S. Communities contract, customers may purchase materials only or a fully designed, engineered, and installed roofing project through Garland/DBS, Inc., with single-source accountability, using a locally based Garland representative to manage their projects and Garland approved local contractors to install them.

U.S. Communities is a nationwide government purchasing cooperative designed to be a procurement resource for state and local government agencies, school districts (K-12), higher education, and nonprofits. There is no fee to participate in the program. It is comprised of over 40,000 registered participants that have access to a broad line of competitively solicited contracts providing quality products, services, and solutions.

Chris Robb, Program Manager for U.S. Communities explains, ”Regional and local statutes generally allow one government agency to purchase from contracts competitively solicited by another government agency for the purpose of increasing efficiency or reducing administrative expenses.”

To obtain additional information on the benefits of cooperative purchasing or to become a U.S. Communities participant, visit www.uscommunities.org or call (866) 472-7467. For more information, or to initiate a relationship with Garland/DBS, Inc., visit www.garlandco.com, contact your local Garland representative at 1‑800‑321‑9336, or contact Karl Sooy at uscommunities@garlandind.com

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Portland Cement Association to Recognize Public Officials for Sustainable Development with Concrete

The Portland Cement Association (PCA) announces a call for entries for the 2010 Sustainable Leadership Awards. Now in its third year, the Sustainable Leadership Awards program recognizes public officials that employ the use of concrete and cement-based products for sustainable, long-lasting benefits. In administering these awards, PCA helps to educate and inform decision makers and those in the construction industry on how concrete is a vital and versatile part of the greening of America’s infrastructure.

The Awards recognize projects in four categories. The Leadership in Sustainability Policy Award honors public officials who enact policies that promote the concept of sustainable development by advocating for and promoting the use of concrete and cement-based products in their communities. The Homes and Residential Building, Non-Residential Building and Infrastructure awards honor public officials who utilize concrete or cement-based products to achieve sustainable benefits for projects in each of these categories.

PCA began the Sustainable Leadership Awards in 2008 to create awareness around the importance of concrete to our infrastructure and communities. By recognizing public officials across the nation, the Awards serve to heighten state and local decision makers’ understanding of the many ways in which building with concrete creates a long-lasting and positive impact on the community and the surrounding environment.

“As the voice of America’s cement and concrete industry, PCA created the Sustainable Leadership Awards to inform decision makers and their communities about the many benefits of using these products,” said Brian McCarthy, president and CEO of the Portland Cement Association. “The awards honor those who employ the use of concrete and cement-based products for sustainable and long-lasting results.”

To be eligible for consideration, construction and planning activities must have occurred between January 1, 2008, and December 31, 2009. The deadline to submit final entries is May 3, 2010. For more information and to access the nomination form, visit www.cement.org/SustainableLeadership

Recipients of the Sustainable Leadership Award can be found in communities, big and small, across the nation. Nominations go through rigorous screenings by a team of industry professionals to identify the most appropriate and innovative projects as recipients of the Award. Past winners have employed sustainable technologies such as; full-depth reclamation with cement; insulated concrete forms wall systems; and pervious concrete among others.

2009 Leadership in Sustainability Policy Award
> Coweta County, Ga.: Wayne Kennedy, County Engineer was recognized for use of full-depth reclamation with cement in road construction.
> Camp Rapid, S.D.: Dale Ludens, Engineering Manager was recognized for use of pervious concrete in parking lot construction.
> Fairfield County, S.C.: James McGraw, Transportation Committee Chairman, was recognized for use of full-depth reclamation with cement in road construction.

2009 Homes and Residential Building Projects Award
> Philadelphia, Pa.: Mayor Michael Nutter was recognized for use of insulated concrete forms in home building.

2009 Non-Residential Building Projects
> Highland, Calif.: The City of Highland was recognized for use of insulated concrete forms in public library construction.

2009 Infrastructure Projects Award
> Queen Anne’s County, Md.: Queen Anne’s County Board of County Commissioners recognized for use of pervious concrete in parking lot construction.

Winners of the 2008 Sustainable Leadership Award can be found in Chicago, Ill.; Lubbock, Texas; Salem, Ore.; Dallas, Texas; Fort Worth, Texas; Leawood, Kan.; Hancock, N.H.; and Glendale, Ariz. To learn more about the Sustainable Leadership Awards, view past winners and download an entry form, please visit www.cement.org/SustainableLeadership.

About PCA
Based in Skokie, Ill., the Portland Cement Association represents cement companies in the United States and Canada. It conducts market development, engineering, research, education, and public affairs programs. More information on PCA programs is available at www.cement.org.

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The American Institute of Architects and AIA California Council Announce Positive Results in Integrated Project Delivery Case Studies
National study of Integrated Project Delivery method demonstrates efficiencies and cost effectiveness

The American Institute of Architects (AIA) and The AIA California Council, (AIACC) today announced the results of a joint project focused on real building projects that utilized and implemented Integrated Project Delivery (IPD), during the building process. IPD is a construction project model in which owner, design professional and builder jointly share a project’s risk and reward. These studies demonstrate the successful application of IPD in a variety of building types and scales in diverse regions of the country, and are the first installment of an ongoing evaluation process of how the IPD model might be incorporated nationwide to protect against project losses. In particular, all six participants in the study delivered projects on time and within budget using the IPD model, thus demonstrating the effectiveness of its use.

Inefficiencies and waste in the construction industry, coupled with new technologies such as Building Information Modeling (BIM) and owner demand for better quality and cost controls, have created a need for a collaborative approach to design and construction. The participants in this project openly discuss the pros and cons of IPD as a collaborative building and design effort.

According to the case studies, advantages of IPD include:
  • Owners enjoy improved cost control and budget management, as well as the potential for less litigation and enhanced business outcomes.
  • Contractors are provided with the opportunity for stronger project pre-planning, more timely and informed understanding of design, the ability to anticipate and resolve design-related issues through direct participation in the design process, construction sequencing visualization to improve methods prior to the start of construction, and improved cost control and budget management.
  • For architects and designers, IPD provides more time for design, reduces documentation, allocates more appropriate sharing of risk and reward and improves cost control and budget management.

According to Jonathan Cohen, FAIA, who conducted the study, “Based on these initial reports, IPD is proving to be a solution that frees parties from the processes that often weigh a project down. It allows for creativity and innovation in the way stakeholders approach a project – avoiding a ‘one size fits all’ formula and instead, finds solutions unique to the specific building issues. We are excited to continue this research and see if this methodology provides the boost to the bottom line of businesses that are desperately needed.”

About the Case Studies
The six case studies in the report include Autodesk Inc., AEC Solutions Division Headquarters in Waltham, MA; Sutter Health Fairfield Medical Office Building in Fairfield, CA; Cardinal Glennon Children’s Hospital Expansion in St. Louis, MO; St. Clare Health Center in Fenton, MO; Encircle Health Ambulatory Care Center in Appleton, WS; and Walter Cronkite School of Journalism, Arizona State University in Phoenix, AZ.

All participants were selected based on their compliance with the criteria of IPD, which include:

  • Mutual trust and respect among participants
  • Collaborative innovation
  • Intensified early planning
  • Open communication within the project team
  • Building Information Modeling (BIM)
  • Lean Principles of design, construction and operations
  • Co-Location of teams
  • Transparent financials

Because the IPD process is new, it was important that all parties agreed to these terms. Additionally, projects had to be completed in the United States. Finally, Cohen visited all of the projects and interviewed the major participants at length, including one or more representatives of the owner, architect and builder. In most cases, the major engineering consultants, specialty subcontractors, building users and other stakeholders were interviewed, and project data was self-reported by the participants.

Steps have been taken across the AIA to support the use of IPD in future projects. While the projects in the current report were implemented prior to the availability of standard IPD Agreements, AIA Contract Documents now offers several documents specifically for IPD projects, including the C191™-2009, Standard Form Multi-Party Agreement for Integrated Project Delivery; C197™–2008, Standard Form of Agreement Between Single Purpose Entity and Non-Owner Member for Integrated Project Delivery; and C197™–2008, Standard Form of Agreement Between Single Purpose Entity and Non-Owner Member for Integrated Project Delivery. Information on AIA’s IPD Agreements and other standard contract documents and software can be found at www.aia.org/contractdocs and at http://www.IPD-CA.net.

The AIA and AIACC continue to study the ongoing effort to apply IPD as a business model and will document results in future reports. To download the IPD case studies, visit http://info.aia.org/aia/ipdcasestudies.cfm.

About the AIA California Council
The AIACC represents the interests of more than 11,000 architects and allied professionals in California. Founded in 1944, The AIACC's mission supports architects in their endeavors to improve the quality of life for all Californians by creating more livable communities, sustainable designs and quality work environments. Today, The AIACC is the largest component of the national AIA organization. For more information, visit www.aiacc.org.

About the American Institute of Architects
For over 150 years, members of the American Institute of Architects have worked with each other and their communities to create more valuable, healthy, secure, and sustainable buildings and cityscapes. By using sustainable design practices, materials, and techniques, AIA architects are uniquely poised to provide the leadership and guidance needed to provide solutions to address climate change. AIA architects walk the walk on sustainable design. Visit www.aia.org

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