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- July 15, 2010
- In This Issue:
- Industry
Spotlight
- Construction
Opportunities
- Construction
Economics
- Construction
Disputes
- Construction
Defects
- Construction
Management
- Engineering
Innovations
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Construction Opportunities
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Minnesota Power Breaks Ground For 76MW Wind Farm In
North Dakota
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Energy Business Review
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"Preliminary grading and road-building for the project was started
last fall, and construction on the first phase of Bison Wind I began
about a month ago."
"Minnesota Power plans to install a total of 33 Siemens 2.3MW
turbines on a 12 square miles footprint of farmland. The company expects
the first 16 wind generators to be installed and operational by
December of 2010...."
"The new wind project is line [sic] with Minnesota's strategy to
install several hundred megawatts of wind power installations...and to
reach its '25 by 2025' renewable energy goal."
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Morocco unveils $3.5 billion wind power scheme
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Reuters
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"Morocco unveiled on [June 28] a wind energy project worth 31.5
billion dirhams...."
"The project will involve building five wind farms to increase the
North African state's wind generation capacity to 2,000 megawatts in
2020...."
"Morocco is the only North African country with no oil of its own. It
seeks to cut its dependency on imported oil and coal by expanding power
generation capacity from renewable sources."
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Construction Economics
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Dubai's ambitions soar with new airport
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USA Today
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"Civic boosters envision Dubai World Central-Al Maktoum
International...as one day growing into a mammoth transit hub of five
parallel runways that could trump Atlanta's airport for the No. 1
spot...."
"...Yet the airport and surrounding development - with a projected
price tag of more than $32 billion - are a gamble for a city-state whose
soaring aspirations have been eclipsed by its struggle to pay for
them."
"Much of the debt piled up because of megaprojects that...promised to
be...one-of-a-kind feats designed to make Dubai stand out on the global
stage and bring in cash."
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Nevada misses nationwide building bounce
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Las Vegas Review-Journal
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"But Nevada continues to lead the country in construction jobs lost,
posting a 23 percent decline year over year in May. That's 18,900 jobs
cut...."
"Two of every four Nevadans receiving unemployment benefits are in
construction....Construction employed 12.7 percent of Nevada's workers
before the recession; today, it employs 6.7 percent."
"...industry experts don't expect Nevada's job losses to level off
until 2012. But a few measures could hasten an end to the slump...."
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Toyota revives Brazil and U.S. plant projects: report
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Reuters
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"Toyota Motor Corp is set to resume construction of car assembly
plants in Brazil and Mississippi which were put on hold amid the global
financial crisis...."
"The Brazil plant, which would be Toyota's second in the country,
would produce small vehicles for the local market, with an annual output
capacity of just over 100,000 units. Operations may start next
year...."
"Toyota also plans to bring a factory in Mississippi onstream,
possibly in mid-2011...."
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Construction Disputes
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Documents Shift Attention to Manufacturer in Drywall
Case
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The Wall Street Journal
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"Documents released...in ongoing litigation related to defective
Chinese drywall is shifting more attention to the role played by one
Chinese manufacturer, Knauf Plasterboard Tianjin Co., and its German
affiliate."
"Other documents released earlier in the week appear to establish a
closer link between KPT and its German affiliate than the two companies
have contended...."
"...if the German company controls the Chinese company, as plaintiffs
lawyers argue, that could make it easier for plaintiffs to collect on a
judgment against the drywall maker."
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Lang Walker settles developer claim
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The Australian
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"High-profile Melbourne developer Kevin Hunt, a former consultant to
Walker Corporation's $400 million Kew Cottages development, claimed he
was owed millions of dollars after being dumped from the luxury housing
project in mid-2007."
"...Walker subsequently terminated the Hunt consultancy agreement,
claiming the initial 44 homes built as part of the first 55-property
stage one of the project were behind schedule and over budget."
"They further alleged Mr. Hunt had initially forecast a $5.45m profit
for the houses, while there had been a loss of more than $7m."
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Construction Defects
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Radioactive Leak Linked To Design Flaw At Yankee Plant
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VPR News
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"Entergy Vermont Yankee has released its investigation into the cause
of radioactive leaks discovered this winter at the plant."
"But according to plant manager...the 'root cause' goes back to
'inadequate housekeeping practices' and poor installation of a pipe
tunnel that should have been air tight."
"Entergy has spent about $10 million addressing the leak. Spokesmen
say much more will be invested in improvements indicated by the report."
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Construction Management
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Contractors Who Build Office Interiors Face Inquiry on
Possibly False Bills
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The New York Times
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"The industry is coming into public focus...as investigators from the
Manhattan district attorney's office expand their investigation into
possible corruption by contractors suspected of stealing hundreds of
millions of dollars using false invoices from electrical, drywall,
plumbing and mechanical contractors."
"They are among roughly 70 companies that the district attorney's
office is looking at as part of its inquiry."
"Corruption in construction drives up the already daunting cost of
doing business in New York...."
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BP Relied on Cheaper Wells
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The Wall Street Journal
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"In recent years, oil giant BP PLC used a well design that has been
called 'risky' by Congressional investigators...significantly more often
than most peers...."
"The design was used on the well that exploded in the Gulf of Mexico
on April 20....The only other major well design, which is more
expensive, includes more safeguards against a natural-gas blowout of the
kind that destroyed the Deepwater Horizon."
"A long-string design is cheaper because a single pipe runs the
length of the well and can be installed in one step. But it also can
create a dangerous pathway for natural gas to rise unchecked outside the
pipe."
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Engineering Innovations
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Starchitecture: A Modest Proposal
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Newsweek
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"...The phenomenon of using iconic architecture to promote a city, an
institution, or a real-estate development was a product of the economic
boom that began in the late 1990s and ended with the recession in
2008."
"...extravagant, eye-popping architecture is giving way to a subtler
new aesthetic....Innovation and experimentation are increasingly
directed at sustainability and new technology...."
"Projects begun before the recession were among the first to feel the
shift. New York's Whitney Museum wanted Renzo Piano to slenderize his
design for a downtown expansion to save costs...."
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Industry Spotlight
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Stadium Construction Projects
Present Challenges Worldwide
As excitement surrounding the 2010 FIFA World Cup starts to settle,
sports venues under construction across the globe are preparing for the
next big-ticket event, whether it’s the 2014 Olympics or future World
Cup games. While some planners tackle long-term questions like what to
do with the highly engineered stadiums once events are over, other
projects face more immediate issues such as schedule delays. Read on to
learn more about these challenging projects currently under construction
across the globe.
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Russia World Cup Bid Faces Stadium Construction
Challenge in Race for 2018
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World Football Insider
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"The huge challenge facing Russia in its quest to secure the 2018 or
2022 World Cup was laid bare...when the bid team revealed details of its
proposed 16 stadiums in 13 host cities."
"The Russian government is preparing to invest billions in developing
the country's football stadium infrastructure...."
"Luzhniki Stadium, located at the centre of Moscow's 145-hectare
Olympic complex, would be the showpiece venue, hosting the opening
match, a semi-final and the final."
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London organizers ponder future of Olympic venues
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Reuters
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"As the soccer World Cup in South Africa builds up to a climax,
questions are being asked about what will happen to its new stadiums
once the fans have gone home."
"Similar questions have already been put to the London 2012 Olympic
organisers. They have been planning what to do with their venues ever
since they launched their bid in 2005."
"However, lawmakers have already put the white-elephant tag on
London's 533-million-pound ($803-million) showpiece, so doubtful are
they that a tenant will be found."
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Finding a fitting future for stadiums
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CNN
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"...white elephant stadiums could be an endangered species as
architects, event organizers and governments put sustainability at the
heart of their plans."
"At a recent lecture delivered at the Australian Embassy in London,
[Architect John] Barrow described a vision of a 'stadium in a box,' --
flexible, modular arenas, which could be tailored to the needs of an
event."
"Barrow thinks modular designs could also make it easier for
'emerging nations' to tender bids for global sporting events."
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Sao Paulo's Morumbi Stadium Cut From 2014 World Cup
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Bloomberg
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"Sao Paulo's Morumbi stadium has been excluded from hosting any games
during the 2014 World Cup after Brazil's largest city missed a deadline
to present financial guarantees for the venue's required renovation."
"Jerome Valcke, secretary-general of FIFA... said...that construction
delays for projects related to the 2014 tournament are 'incredible' and
Brazil is 'very late' in preparing for a tournament the country was
awarded in 2007."
"The committee will meet with FIFA after the South Africa World Cup
comes to discuss alternative venues...."
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China the master stadium builder
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The Africa Report
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"...China has already constructed 52 stadiums [in Africa]. It is a
way for China to win over football-lovers but also gives Africa the
opportunity to set itself up with the infrastructure it is so
desperately lacking...."
"...The 20,000-capacity Essipong (Sekondi-Takoradi) and Tamale
Stadiums cost $38.5m each and were built in less than two years by
Shanghai Construction Co. Ltd...."
"China is extending its influence in Africa, but is still far from
competing with historical partners France, Britain and the European
Union in terms of absolute value...."
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