from Mark Smith, Advocate, California Builders Alliance
PPI for final demand falls 0.1% in December; goods decrease 0.4%, services unchanged
The Producer Price Index for final demand fell 0.1 percent in December. Prices for final demand goods decreased 0.4 percent, while the index for final demand services remained unchanged. Prices for final demand rose 1.0 percent in 2023.
Calif. to test law expediting infrastructure projects
The proposed $4.5 billion Sites Reservoir in California's Sacramento Valley is facing a legal challenge in what will be the first case to test new state laws to hasten infrastructure development. At issue is the new expedited legal review for projects designated by the governor, including the Sites Reservoir. Full Story: American Society of Civil Engineers
2024 will be big for these 9 civil megaprojects
Unit 4 of Bechtel's $30 billion Vogtel nuclear power plant in Georgia is scheduled to begin operation early this year, making the plant one of nine civil infrastructure megaprojects marking significant advances in 2024. Construction Dive looks at this and the eight other projects, including the $19 billion expansion of John F. Kennedy Airport in New York City. nFull Story: Construction Dive
US construction costs up 1.32% in Q4
Construction costs were up an average of 1.32% in the fourth quarter across the US, according to a report by Rider Levett Bucknall. For the entire year costs rose 5.28% while fourth-quarter construction unemployment edged up to 3.8% from 3.4% a year before. nFull Story: Daily Commercial News (Ontario)
DOL Finalizes FLSA Independent Contractor Rule
The final rule reshapes the test for determining whether a worker is an employee or independent contractor under the Fair Labor Standards Act, creating a complex analysis more likely to support a finding of employee over independent contractor status than the previous test. Read more.
AGC sues to block government-mandated project labor agreements
The Associated General Contractors of America and its Louisiana AGC chapter filed suit this week in federal court to block the Biden Administration's unlawful effort to mandate project labor agreements for major federal construction projects. Association officials noted that President Biden lacks the legal and constitutional authority to impose such sweeping labor policies that undermine current labor agreements for union firms and discriminate against open shop contractors. Learn more about the lawsuit.
Injury audits can help contractors address opioids
Musculoskeletal injuries can be a gateway to opioid abuse among construction workers, so it would behoove contractors to review their Worker's Compensation injury reports to determine what aspects of their operations can be altered to reduce the risk and severity of soft tissue sprains and strains, writes Cal Beyer. He also suggests contractors review laws pertaining to access to naloxone, an FDA-approved medication used to treat narcotic overdoes. Full Story: Construction Business Owner
Funding in doubt for plan to reroute Calif. water
A disputed plan to build a big underground tunnel to reroute much of California's water supply is facing a legal obstacle. At issue is a provision dating back to 1959 that the Department of Water Resources says would allow it to borrow the money minus legislative approval. nFull Story: The Associated Press
Mortenson chair shares mostly upbeat construction outlook
The US construction industry should see sustained activity this year due to population growth in the West and Southeast, stable interest rates and high demand for energy and manufacturing projects, said David Mortenson, chair of Mortenson Construction, during a Federal Reserve Bank of Minneapolis conference. However, Mortenson is concerned about construction's relatively stagnant productivity curve, which needs to change if the industry is to emerge from a tight labor market. Full Story: Construction Dive
What's coming this year in AI for construction
Generative artificial intelligence is poised to make further inroads in the construction industry this year. Lucy Barnard highlights some of the most promising AI developments, including a tool that slashes the time required to search construction documents for needed information and a chatbot that predicts how long a project will last. Full Story: Construction Briefing
Design-build, AI not always ideal for transportation work
Design-build and progressive design-building are becoming increasingly popular delivery models for transportation projects, but despite their economic benefits, they're not always the right choice for a project due to unfamiliarly among contractors, legal risks and a potentially arduous bid process, according to panelists at the recent Transportation Research Board forum. The forum also touched on the potential of AI to make DOT work more efficient, but some panelists expressed concerns about the risks of deepfakes and compromised data quality. Full Story: Engineering News-Record (tiered subscription model)
Report: Global airport construction market still hobbled
The number of airport construction projects globally is down substantially from the pre-pandemic year of 2019, according to the Centre for Aviation and the outlook bodes little improvement. "Airport construction investment is somnambulating as a direct result of the Covid-19 pandemic, inflation, and global tensions ... and there is no sign that any of these pressures will subside in the immediate future."
Full Story: Construction Briefing
Ban urged for asbestos-based cementitious products
Whether being installed or removed, cementitious products containing asbestos pose a significant danger for construction workers, according to Occupational Knowledge International. The organization calls for a ban, citing a study that concludes these products pose an exposure danger that greatly exceeds US occupational safety limits.
Full Story: For Construction Pros
Major dam removal begins on Klamath River
Drawdown began this week for the Klamath River dam removal project, the largest ever of its kind in the US. Four of the river's six dams will be removed this year. Similar projects are taking place across the country for a variety of reasons, such as age and ecological impact, writes Alka Tripathy-Lang. Full Story: Ars Technica
Calif. toll lane completion date pushed back
The first phase of a $1.77 billion project to extend toll lanes from the Los Angeles county line to Redlands has had the anticipated opening date pushed back from their original date of late 2023 to summer this year. The first phase, which broke ground in 2020, will add toll lanes to the 10 Freeway in San Bernardino County. Full Story: Inland Valley Daily Bulletin (Ontario, Calif.)
2 contractors step up to quickly fix part of I-10
Officials reopened a fire-damaged section of Interstate 10 in Los Angeles in just eight days thanks to quick responses from emergency contractors Griffith Co. and Security Paving. Griffith needed just two days to extricate more than 150 truck loads of debris, and Security Paving put together a falsework plan within 10 hours and acquired 30 extra hydraulic jacks, said Caltrans' Ramon Hopkins during a virtual event from BuildOUT California in collaboration with AGC of California and CALINFRA. Full Story: Engineering News-Record (tiered subscription model)
Union workers sought for high-speed rail project
Trade unions are searching for as many as 11,000 construction workers for the high-speed rail line between Rancho Cucamonga, Calif., and Las Vegas. Work can begin as soon as labor is rounded up, with Brightline West's plan calling for work to begin at the stop in Las Vegas and at several sites in California. Full Story: Daily Press (Victorville, Calif.)
Office-to-residence conversions seem likely in San Diego
Converting unused office space to residences presents major challenges, but San Diego can expect to see more conversions over time, according to 13 economic analysts. However, one economist is skeptical of the financial viability of such conversions and the prohibitive presence of asbestos in some buildings. Full Story: The San Diego Union-Tribune (tiered subscription model)
L.A. Metro pares plans for Union Station
Los Angeles Metro has reduced the number of new-build platforms with access to the run-through tracks in its plans for Union Station. The modified plan comes as the cost of the overhaul has more than doubled to an estimated $1.93 billion. Full Story: Urbanize Media/Los Angeles
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Mark Smith
Advocate
California Builders Alliance
5370 Elvas Avenue ǀ Sacramento, CA 95819
Cell: 916.335.5072
Email: mark.smith@calbuilders.org
Email: mark@smithpolicygroup.com
