An Upward Trend in Commercial Construction? (News Note)

Year-end economic indicators demonstrate that private commercial construction may be increasing in 2012, primarily as demand grows for new projects built in the United States.

According to an article in Businessweek, the Architecture Billings Index held at 52 in December, indicating a modest expansion in the market. The American Institute of Architects said that the commercial and industrial component of the number climbed to 54.1 in December, the highest in 10 months.

The monthly survey of U.S.-based architecture firms is one of the main indicators of nonresidential construction, and these numbers suggest that modest improvement may be on the horizon.

The information is confirmed by data from the Census Bureau that shows that spending on lodging, office, commercial and manufacturing buildings grew 8.2 percent in November to $9.2 billion from a year ago. These types of commercial and industrial projects are historically canaries in the mine and are usually the first part of the industry to improve as the economy expands.

Other indicators, including vacancy rates, are also pointing towards recovery. U.S. office vacancies fell in the fourth quarter to 17.3 percent, the lowest since 2009, from 17.4 percent in the prior period and 17.6 percent a year earlier.

The architecture association’s billing index historically has been ahead of improvements in building activity by about nine to 12 months; because this recovery has been so weak, a construction rebound is coming later in the economic cycle, according to leading economists.

What about you– do you think construction is on the upswing?  Are clients still shy to pull the trigger on ambitious projects?  Share your thoughts on what these numbers mean to you in the comments section, below. 

And if you haven’t already, sign up to get your free copy of the white paper, “7 Critical Mistakes that Engineers & Architects Make During Contract Negotiation and Execution that Sabotage their Projects & Invite Litigation”.  You can download your copy by going to the form on the right hand side of the blog.

Photo (c) freefoto.com

Specialized Certification for Structural Engineers: a necessity?

States with Certification RequirementsIn North Carolina, as in 39 other states, there is no special certification for structural engineers.  As structural engineering becomes more complex, is specialized certification an idea whose time has come?

“Increasingly, structural engineers, architects and construction firms work together at the earliest stages of a project,” says Jon Schmidt, Associate Structural Engineer and Director of Antiterrorism Services at Burns & McDonnell and Chair of the Editorial Board of STRUCTURE Magazine. “In today’s world of complex structures and 3D modeling, structural engineering is a partnership among architects, contractors and engineering firms. The structural engineer must be able to offer insightful and pragmatic suggestions, and doing that requires strong technical knowledge, depth of experience and problem-solving abilities that have been well-honed over time.

“To this day, only ten states actually license structural engineering as a unique discipline; among these ten states, the requirements vary substantially. This has made it very challenging for contractors to determine what skills and experience structural engineers bring to the table,” says Schmidt.  “In the 40 states that do not specifically license structural engineers, they are typically licensed as Professional Engineers. This is a generalist license that does not distinguish between structural engineering and related disciplines such as civil engineering. As such, engineers in these states are allowed to perform structural engineering tasks, yet there is no formalized way to know if they possess the in-depth skills and experience that can make all the difference in a major project.”  (For a state-by-state look at the 10 states which do license structural engineering, click on the map above to enlarge the image).

SECB certification is the structural engineering profession’s self-imposed benchmarking process that was initiated in 2003, when the National Council of Structural Engineers Associations (NCSEA) voted to establish an independent entity to develop a process of certification. One of the biggest challenges the structural engineering profession faced, until SECB was formed, was that there were no clear benchmarks by which to evaluate the skill levels of professionals in the discipline.

Eight years after its formation, and over 1,752 certifications later, the goals of SECB remain, since there is still no national licensing process for evaluating the discipline-specific skills and expertise of structural engineering professionals. SECB hopes to transform its certification process into the basis for national licensure.

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What do you think?  Should a national licensure program be established?  What about other disciplines within the engineering umbrella– should there be separate certifications for those disciplines too?  From a legal standpoint, if an engineer has the SECB designation, he may be seen as holding himself out to a higher standard of care.  With a higher standard of care may come increased liability.  Is this fair for an engineer who voluntarily studies for additional certification?

Share your thoughts on certification and specialization in the comments section, below.

Duke’s Power Lines Project & Native American Sacred Mounds (News Note)

Tuckasegee RiverDuke Energy has been cleared to update power lines near the Eastern Band of the Cherokee’s reservation in the western North Carolina mountains.

Late last month, the North Carolina Utilities Commission handed down their ruling, allowing Duke’s project to continue despite protests from the Cherokee tribe and other residents of the Kituwah Valley. The Valley is home to a sacred site for the Cherokee and fear of damage being done prompted their reaction against the plans floated by Duke. The Valley is located along the Tuckaseegee River east of Bryson City.  

The state utilities commission decided that Duke had not acted illegally by beginning construction on a 161-kilovolt transmission line upgrade. The upgrade is intended to help with increased demand in the area, specifically from the Harrah’s Hotel and Casino and surrounding development in Murphy, North Carolina.

The tribe and local citizen groups argued that the construction project would damage property values by destroying the natural beauty of the area. They requested that either the project be stopped entirely or that they be compensated for their predicted loss in property value.

The Commission ruled that the complainants had not met their burden of proof and had failed to show that Duke Energy had acted unreasonably or inappropriately in their planning of the power upgrade. The Commission also said that it was not empowered to order any compensation for loss in property value. “The complainant’s members will need to pursue that remedy in the appropriate court,” the Commission said.

This isn’t the only issue the group has had with Duke’s planned project. The original complaint filed by the Cherokee included an objection to Duke’s plans to locate an electrical tie station in the area. Duke subsequently voluntarily relocated that station. Duke plans to build a tie station, which steps power down from high-voltage transmission to lower levels needed to serve distribution stations for residential and commercial customers, to serve growth in the bustling casino area.

Duke says it has found two alternative sites for a power station so the company can avoid construction near the sacred mound which Michell Hicks, chief for the tribe, says is the home for the tribe’s mother town. One option is 13 acres in the Swain County Industrial park that is almost 4 miles from Kituwah, says Duke Spokesman Jason Walls. That site would cost $400,000. The second site is about 12 acres at Sheppard’s Creek, and would be about 1.4 miles from Kituwah. Because that is private property, Duke is not disclosing the cost.

The necessary improvements should be completed in 2012.

Have you followed this dispute?  Have comments or questions about the decision? Drop me a line in the comments section, below.

SourceDuke Energy cleared to build high voltage line near reservation,” by John Downey.  Photo (c) Kevin Dobo-Hoffman via CC.

Welcome to a whole new year!

train tracks to the future

Well, folks, it’s happened.  One minute we’re rushing around like chickens with our heads cut off trying to find that elusive gift for the hard-to-buy-for-cousin; the next, we’re drinking in the new year.  Is it really 2012 already?  Yes, Virginia, it is a new year!

As we look forward to our adventures in the year ahead (hence the train tracks!), let me again thank all of you who have invited me into your email boxes each week!  Here’s to a happy and prosperous new year. (And to hoping the Mayans were not correct!).

Photo: (c) Barry Hunter via CC license.

NCSU’s Huge New Home (News Note)

the pointWolfpack Chancellor Randy Woodson is likely having a great holiday season as he settles into his new pad at North Carolina State University. Construction was recently completed on the new chancellor’s residence at the school.

Known as “The Point,” the Chancellor’s new home is an 8,500 square feet behemoth. Though it sounds hulking, 5,500 of those square feet will serve as public use space, accommodating receptions as well as events for alumni and students. The downstairs area will also serve as a place for the chancellor to host events, as often as once a week, and to build relationships. It can hold up to 200 people inside or on the back patio. The remaining 3,000 square feet, all of the second floor, will be used as living quarters for the chancellor and his family.  [Still a pretty roomy living quarters, in my opinion!]

No expense was spared during the 18 month construction. Green features like geothermal heating and cooling, sustainable materials, and LED lighting were installed throughout The Point.  The house is located on North Carolina State’s Centennial Campus, near Lake Raleigh and the Park Alumni Center and is fittingly made of Wolfpack-red brick.

The Point came with a  $3.5 million price tag, which was funded entirely by private donations. When asked how the university justifies spending that much money on a house when the school is cutting jobs and eliminating courses, Associate Vice Chancellor for Facilities Kevin MacNaughton said the house will be a hub for the university’s efforts to build relationships with private donors.

Chancellor Randy Woodson and his wife moved in Oct. 28. The first fundraiser they hosted in the new home was Nov. 16. Since, they have hosted about a half-dozen fundraising events, officials said.

The original chancellor’s residence for NC State was constructed in 1928. Back then the school had a grand total of 1,500 students in attendance. Today that number has risen to more than 34,000. With such a huge change in the student body it was about time for the chancellor himself to be movin’ on up to appropriately grand digs. Thankfully, the original residence won’t be torn down. Instead, plans have been drawn to convert it into the future home of the university’s Gregg Museum.

If you’d like to drool over photos of Woodson’s new home click here.  Be warned, however, that doing so could cause you to turn green with envy.

Source:Construction complete on NCSU chancellor’s residence,” by Jason deBruynPhoto:  NCSUnewsdept via Creative Commons license.

What do you think of the new residence?  Thoughts, comments, or questions?  Post in the comment section, below.