Non-residential construction remains active in spite of the residential market slowdown and credit crunch, according to the Turner Building Cost Index, published by leading national construction company Turner Construction.

The index shows a continuing shortage of skilled labor and uncertainty about the availability and cost of materials, putting upward pressure on construction costs over the next several quarters.

At the same time, a decline of nine points in the Architecture Billings Index in February indicates tougher times ahead for both design firms and contractors. The downturn could indicate a noticeable slowdown in commercial construction projects coming online over the next nine to twelve months, according to the American Institute of Architects (AIA).

Some AIA members, however, are still reporting strong business from a billings and demand standpoint.

The one bright spot in commercial construction continues to be the institutional sector, which is showing positive conditions for school, hospital and government construction.

Source: Building Design+Construction

Southern Illinois University Edwardsville has contracted with Kwame Building Group Inc. for construction management of various renovations and new construction projects related to the university’s facilities master plan.

KWAME will act as an advisor to the University by reviewing project program, design and construction phases relative to issues of cost, schedule, constructability and quality control.

Source: Commercial Journal St. Louis

Construction is complete on the $8 million Saint Louis University Simon Recreation Center. The Lawrence Group provided  architectural and interior design and Alberici Constructors of St. Louis was the general contractor.

Phase II of the two-phase project completed in January 2008 includes a 9,638-square-feet expansion of the entrance on the upper level of the Simon Recreation Center. The new space features an open floor plan, a new entry reception area, a circular welcoming desk, a renovated lobby, all natural materials, a 35 feet tall water feature built into a maple wall glass mezzanine and a 4,990-square-foot glass mezzanine.

The Phase I 41,800-square-foot expansion of a parking garage into an exercise facility was completed in January 2007 with 200+ new workout machines, a juice bar and lounge, full wellness suite, additional locker rooms, a boulder wall and a gaming area. Several new multi-purpose rooms feature Pilates, yoga, spinning, aerobics and other fitness classes.

Engineering News-Record today reported that an overall decline in construction starts in the United States is more dire than predicted. McGraw-Hill Construction estimates that the industry experienced an 8% decline in construction starts in 2007. Another 2% drop is forecast for 2008.

Total construction reached a record $668.9 billion in starts in 2006, and values are expected drop to $626.7 billion for 2007 and $614.1 billion in 2008. Last year, McGraw-Hill Construction predicted that starts in 2007 would drop 1%, despite the weaking single family home market.

Turmoil in the sub-prime mortgage market has been a major concern for the construction industry and the overall economy. Tighter lending conditions  will impact both residential and commercial development.

Some positive trends are still seen in public works projects and school construction.

The University of Missouri St. Louis (UMSL) has purchased a $2.7 million, 56,000-square-foot laboratory facility and will renovate it for use as a new tech incubator and supercomputing center.

The building, across the highway from Lambert-St. Louis International Airport, had been renovated for use as a lab by Incyte Genomics, a Wilmington, Delaware-based pharmaceutical company. The facility comes equipped with a 3,000-square-foot central computing chamber and peripheral office/lab spaces. These niche improvements were attractive to UMSL for their IT Enterprises, a new business incubator set to open at the end of 2007.

UMSL plans to invest several million dollars in IT Enterprises, which will house a supercomputer and up to 12 startup companies. UMSL hopes the supercomputer will attract researchers and financial grants, which in turn will vitalize the business incubator. The building would have required significant interior renovation had it been sold to a traditional office user.

Source: Midwest Real Estate News

Holland Construction Services is building a new $26 million junior high school for O’Fallon School District #90. The 145,000-square-foot school will be on 42 acres along Seven Hills Road and will feature a gymnasium, 40 teaching areas, a library/media center and a “cafetorium,” which combines a cafeteria  and performance stage. The campus will have a courtyard, baseball and softball fields, and a soccer field with a running track. FGM Architects Planners is providing architectural services for the project.