April 24th, 2008

AEC acquisitions grow in 2007

One of the big national AEC stories of 2007 was the number of top design firms acquired by larger companies last year. Sixteen firms “disappeared” from the ENR Top 500 Design Firms list due to acquisitions.

The trend to instantly create companies that can provide a full range of services — from planning and design through construction and even operations and maintenance — has been fueled by larger projects and clients who want single source delivery.

The U.S. dollar’s fall against foreign currencies is another factor that makes acquisition of U.S. firms by foreign companies look more enticing than ever. European companies can get 30% more for their money by using Euros in the U.S.

Still, there’s a lot to be said for the stability, integrity and commitment of firms owned by their founders, management teams or ESOPs (employee stock ownership plans). Among such successful companies in St. Louis are McCarthy, Walton Construction, Guarantee Electrical, Lawrence Group, Clayco, Kwame Building Group, Graybar Electric.

These companies and many others have found ways to provide the broad range of services owners want while still maintaining local ownership.

What other local AEC firms can you add to the list?

April 23rd, 2008

Walton Construction St. Louis to build Chesterfield Medical Institute

Walton Construction St. Louis has been selected as general contractor for the new $6.7 million, 20,000-square-foot Chesterfield Medical Institute. The facility will include an outpatient surgical unit and three medical practices — Laser & Dermatologic Surgery Center, West County Dermatology and Generation Dental Group. Walton also is providing pre-construction, estimating and value engineering on the two-story medical complex. The architect on the project is Feeler-Scheer Architects LLC.

Source: St. Louis Business Journal

March 31st, 2008

Walton Construction safety manager featured in “Ask the Expert”

Jeff Ship, Division Safety Manager for Walton Construction, was featured in a St. Louis Post-Dispatch “Ask the Experts” column on Friday.

“Q. In addition to possible fines, what are potential costs associated with accidents on the job site?”

“We base our safety program on risk prevention, not fines. We actually review the project before responding to a bid, evaluating all possible risks that could affect our employees and our company. Accidents can have an impact on a project on many levels, from increased cost production issues to delays. The medical bills and time lost by a worker recovering from a broken arm, for example, can cost the company $15,000. Accidents also can erode employee trust in the company if co-workers worry that a job site is not a safe environment.

“Serious or multiple work site accidents are likely to increase an employer’s insurance and bonding rates, and affect the company’s experience modification rating, which affects workers’ compensation rates. They can put a damper on future work prospects, even lead to contract termination if a client feels the contractor has failed to meet safety requirements.

“A good work site safety program prevents accidents by training employees to be responsible and accountable for safety, and by empowering them to enforce the rules to stop any unsafe act.”

Jeff Ship, Walton Construction

March 29th, 2008

Cities beginning to require crane operator certification

A new Miami-Date County ordinance went into effect on Friday, three days after a section of a tower crane collapsed at a Bay condominium construction site near downtown Miami, leaving two workers dead and five others injured.

The new ordinance requires certification of operators, who must pass a written test and show proficiency, including the ability to maneuver and shut down the giant crane, and then to secure it, according to ENR.

The state of Florida does not require certification. Miami-Dade County is among a handful of major metropolitan areas — including Chicago, Los Angeles, New Orleans, New York, Omaha and Washington — that have passed their own rules requiring licensing of tower-crane operators.

Missouri is not one of the 15 or so states that currently require crane operator certification.

In early March, a crane accident on the I-64 reconstruction project closed Clayton Rd. in St. Louis for 13 hours when a clamp holding a beam broke, causing the crane to topple. No one was injured in that accident.

Source: ENR

March 27th, 2008

Crane accidents spur new regulations, safety concerns

The entire industry seems to be focused on crane and construction worksite safety in the wake of two deadly crane collapses, one in New York City and a second in Miami. Those cities quickly moved to pass strict rules for crane inspections and safety practices.

But a survey of other areas of the country showed little discussion about standardizing crane inspections and operator certification procedures, unless a fatal crane accident has recently occurred locally, according to ENR. Some examples are Washington state and California, which were both motivated to tighten crane safety rules following crane accidents.

A couple of ENR blog posts worth reading - People Are Scarier Than Cranes and Walking the Walk: The Writing is on the Wall about Crane Safety.

What is your company doing about crane safety?

March 24th, 2008

How will the slowing housing market affect commercial construction?

Ron Glaser, vice president of preconstruction services for Walton Construction, was recently quoted in the St. Louis Post-Dispatch “Ask the Experts” column on the impact of the slowing housing market on commercial construction:

“So far, commercial construction has not been affected by the slowdown in the housing market nearly as much as residential construction. Many sectors of commercial construction are moving forward with new projects. Plus, many of the traditional residential specialty contractors are beginning to compete in the commercial construction market.

In the last six months, we’ve seen subcontractors that had been focused on residential work for the last several years starting to bid on commercial projects. The cost of construction materials is beginning to stabilize from the increases we have seen over the years. The prices of items such as lumber and gypsum drywall actually are on the decline.

We are optimistic that the economic stimulus operations being put in place as a result of the slowing housing market also will boost the commercial construction market and turn around residential construction.”

Source: St. Louis Post-Dispatch