Industry Spotlight

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Construction Opportunities

Minnesota Power Breaks Ground For 76MW Wind Farm In North Dakota

Energy Business Review

"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."

Morocco unveils $3.5 billion wind power scheme

Reuters

"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."

Construction Economics

Dubai's ambitions soar with new airport

USA Today

"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."

Nevada misses nationwide building bounce

Las Vegas Review-Journal

"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...."

Toyota revives Brazil and U.S. plant projects: report

Reuters

"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...."

Construction Disputes

Documents Shift Attention to Manufacturer in Drywall Case

The Wall Street Journal

"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."

Lang Walker settles developer claim

The Australian

"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."

Construction Defects

Radioactive Leak Linked To Design Flaw At Yankee Plant

VPR News

"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."

Construction Management

Contractors Who Build Office Interiors Face Inquiry on Possibly False Bills

The New York Times

"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...."

BP Relied on Cheaper Wells

The Wall Street Journal

"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."

Engineering Innovations

Starchitecture: A Modest Proposal

Newsweek

"...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...."

Industry Spotlight

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.

Russia World Cup Bid Faces Stadium Construction Challenge in Race for 2018

World Football Insider

"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."

London organizers ponder future of Olympic venues

Reuters

"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."

Finding a fitting future for stadiums

CNN

"...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."

Sao Paulo's Morumbi Stadium Cut From 2014 World Cup

Bloomberg

"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...."

China the master stadium builder

The Africa Report

"...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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