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- June 3, 2010
- In This Issue:
- Industry
Spotlight
- Construction
Disputes
- Construction
Delays
- Construction
Economics
- Construction
Opportunities
- Engineering
Innovations
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Corporate Headquarters
One Riverway, Suite 2350
Houston, Texas 77056
713.626.2525
713.626.2555 (fax)
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Construction Disputes
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Condo owners' lawsuits allege shoddy construction at
Hilton
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Austin American-Statesman
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"....For nearly three years, an assistant city manager has been
fielding complaints from condo owners about leaks and noise."
"...seven condo owners...say the city allowed shoddy construction
that ruined their $500,000-plus investments. One owner...claims that
frequent leaks and mold in the ceiling have made his two fifth-floor
units uninhabitable...."
"The city acknowledges the problems exist....contends the problems
were caused by...the developer the city hired to build the hotel...."
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Lawsuit: Utility mix-up delayed $50 million Irvine
roadway project
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The Orange County Register
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"The city of Irvine [California] has filed a lawsuit...alleging
that a utility conduit mix-up helped delay a high-profile, $50 million
roadway construction project."
"But the city alleges that unbeknownst to them, new plans for the
conduit were drawn up, with the planned location of the equipment being
moved significantly."
"The mix-up forced a re-design of the project, and led to
'significant' additional construction costs, according to the city
complaint."
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Governor meets with Perini officials over MGM Mirage
dispute
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Las Vegas Review-Journal
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"Officials...want the more than 600 subcontractors and vendors...to
be paid money they are owed for work on the massive $8.5 billion Strip
development."
"Perini recorded a lien on CityCenter's property for $490 million and
filed a lawsuit seeking payment. Subcontractors are owed about $390
million of the disputed funds, roughly 80 percent of the total."
"...MGM Mirage said...it would begin efforts to pay the
subcontractors. However, company officials have not yet been able to
resolve some of the payment issues...."
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Construction Delays
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Delays hit £200m school rebuilding programme in city
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Portsmouth News
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"A building contractor was supposed to be picked in July but that has
now been set back three months to October."
"The team behind Building Schools for the Future (BSF) programme at
Portsmouth City Council says it has been 'more complex' than expected."
"But there is greater uncertainty about the works at the other 10
schools, due to start from 2012, and an £80m BSF project to transform 10
Havant schools, as ministers look to make massive cuts."
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Fifty N.J. school construction projects are stuck in
limbo
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The Star-Ledger
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"Redshaw Elementary is one of more than 50 New Jersey schools in
limbo as state funding for construction has been caught up in years of
mismanagement scandals, financial crises and red tape...."
"...state officials said shovels may be in the ground soon on many
stalled school construction projects. Last month, the state said it will
borrow $500 million...to start building again."
"...authority officials said they still have no timetable for when
districts will hear whether they will get funding to build their new
schools...."
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Brazil's stagnating 2014 Cup preparations cause concern
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Reuters
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"...soccer-crazy Brazil is coming under fire for...missing deadlines
on preparations...which include building five stadiums from scratch and
carrying out major overhauls of others."
"...'Delays in the tender processes, court disputes, lack of
definition of projects and financial difficulties are still paralyzing
the construction work.'"
"Plans for a 600 million-real ($340 million) overhaul of Rio de
Janeiro's iconic Maracana stadium are among those most behind schedule,
with the project yet to be bid out to construction companies."
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Work halted on Oregon liquefied natural gas port
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Associated Press
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"Extended delays in state and federal permits and a difficult
investment environment led to the decision to stop the Bradwood Landing
project...."
"NorthernStar started work...six years ago with the hope of building
the first deep water port to receive liquefied natural gas tankers on
the West Coast and a 36-mile pipeline to connect to existing pipelines
serving [Oregon]."
"Bradwood Landing won federal approval, but state officials and
conservation groups opposed it, saying the energy source was not needed
and posed environmental problems."
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Construction Economics
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European construction jumps most in 14 years
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Bloomberg
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"European construction output increased the most in 14 years in March
led by a rebound in Germany, the region's largest economy."
"Construction in the 16-nation euro region rose 7.6 per cent from
February....'That's the biggest gain since March 1996 and the first
increase in a year....'"
"European builders are stepping up output to meet reviving demand
after unusually cold weather curbed construction in the first two months
of the year."
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Shell to Spend More in Australia Than Other Regions
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Bloomberg
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"...Australia is a key growth region for Shell as The Hague-based
producer continues a shift toward gas....Shell expects the share of gas
as a proportion of output to increase to 52 percent in 2012."
"Chevron Australia has spent more than A$1billion ($880 million) on
drilling in the past three years and expects to allocate 'hundreds of
millions of dollars' on exploration this year...."
"...Shell plans to convert coal-seam gas to liquid form in
Queensland, and intends to use floating LNG technology to develop the
Sunrise and Prelude ventures...."
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Construction Opportunities
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Miniature Nuclear Plants Seek Approval to Work in U.S.
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Bloomberg
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"...They're seeking to tap a market that has generated about $135
billion in pending orders for large nuclear plants."
"World electricity demand is likely to grow 2.7 percent a year from
now until 2015 and then 2.4 percent annually until 2030...."
"...Hyperion's price tag is $50 million for a 25-megawatt reactor
more comparable to a diesel generators [sic] or wind farms."
"'A 25-megawatt plant would put electricity into 20,000 homes....'"
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China in Talks With Russia, France on 4G Reactors
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Bloomberg
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"...China's self-sufficiency in reactor design and construction and
its emergence as an exporter of nuclear technology would increase
competition for...Europe's biggest power producers."
"State-owned China National Nuclear may start building two
800-megawatt experimental fast reactors around 2013 and operations may
start before 2020....Fourth-generation technology reactors produce
minimal radioactive waste and are fuel efficient."
"The nation may spend more than 1 trillion yuan ($146 billion) in the
next decade on nuclear energy...."
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Engineering Innovations
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Japanese to Build World's Tallest Building on Floating
Lilypad
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Times of London
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"Japanese scientists, engineers and financiers have begun work on a
project that will make the construction excesses of Dubai look timid: a
tower 3,300-foot high and a vertical farm balanced on a floating
concrete lilypad."
"Energy will be drawn from solar power...."
"The engineering giant Shimizu envisages building the tower from
super-light alloys derived from the magnesium in seawater....each new
floor of the tower will be built at ground level, pushing the previous
floor down into the sea....the tower will be raised to its full height."
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Clever Photosynthetic Breathing Building "Skin" to Cut
Need for Energy
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CleanTechnica.com
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"Bringing bioengineering to architecture, UC Berkeley
Professors...are pioneering a new type of thin film building membrane,
creating a material structured at the nano and micro scale that can
substitute for energy...."
"...they are working on a 'skin' that works like nature's skins to
control humidity, light and heat in buildings the same way that nature
does...."
"Their prototype lense...reacts to changes in the building's
atmosphere by triggering microscopic openings in the membrane."
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Industry Spotlight
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Deepwater Incident Sets Off
Riptide of Ramifications
As ROVs attempt to plug the spewing oil well in the Gulf of Mexico, a
riptide of legal and regulatory ramifications is sweeping its way
onshore. Parties associated with the recent Deepwater Horizon rig
explosion and subsequent oil spill are fighting to keep their heads
above water as the lawsuits flood in. Read on to learn about impending
litigation, effects on other deepwater drilling projects, and companies
pursuing their exploration options in the wake of stricter regulations.
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Legal Complications Grow As Gulf Oil Spill Expands
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NPR.org
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"...The legal spectacle resulting from this spill could spread as
wide and as deep as the slick itself."
"...liabilities from this Gulf disaster promise to be far bigger than
the Exxon Valdez oil spill."
"BP...has pledged to cover the cost of cleanup and what it calls
'legitimate' claims of damage....BP will most certainly try to collect
some of that money from the other companies involved in the construction
and operation of the rig."
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Gulf Coast Oil Rig Disaster Sets Off Gusher of Work for
Attorneys
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Law.com
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"From Texas to Florida, the litigation rush is on, as thousands of
gallons of oil spill into the Gulf of Mexico in the wake of the April 20
explosion of a drilling rig off the coast of Louisiana."
"...'If I were a lawyer getting involved in these cases, I would make
sure I have the financial and emotional resources to wage this war.'"
"...'This is going to be, in my estimation, the largest tort we've
had in this country.'"
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U.S. lawmakers urge idling BP's Atlantis rig
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Reuters
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"Any potential shutdown at Atlantis, even short-lived, could knock
out a major chunk of BP's U.S. crude and natural gas production. The
platform can produce up to 200,000 barrels a day of crude, around 13% of
total U.S. Gulf output, and up to 180 million cubic feet of natural gas
per day."
"...lawmakers voiced new concerns that the Atlantis oil and gas
project...has operated without up-to-date 'as built' engineering
documents and diagrams showing how all of its components work."
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Arctic Drilling Proposal Advanced Amid Concern
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The New York Times
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"A proposal to drill for oil in the Arctic Ocean as early as this
summer received initial permits from the Minerals Management Service
office in Alaska...."
"Minerals Management has faced intense scrutiny in the weeks since
the oil spill....An article...reported that it failed to get some
environmental permits to approve drilling in the gulf and ignored
objections from scientists to keep those projects on schedule."
"Even as the administration has begun a review of its offshore
leasing program and temporarily halted new offshore drilling projects,
Shell says it hopes to begin drilling this summer."
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Occidental Leads Onshore Rush Amid Offshore Crackdown
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Bloomberg
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"Occidental Petroleum Corp...is leading a rush to find crude on land
as BP Plc's Gulf of Mexico disaster spurs tougher offshore-drilling
rules."
"Occidental...doubled its estimate for a discovery near Bakersfield,
California, to the equivalent of as much as 500 million barrels of oil,
which would have a value of more than $34 billion at current prices...."
"...the discovery may be four times as large as the company's
estimate, or 1 billion barrels, which would be enough to supply every
refinery on the U.S. West Coast for 13 months."
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