July 18th, 2008

KWAME to manage Lambert-St. Louis International Airport Renovations

St. Louis-based Kwame Building Group has been named program management consultant for the Airport Experience Program, a renovations campaign at Lambert-St. Louis International Airport.

Over a five-year period, the airport’s terminal, concourse and passenger support facilities will undergo renovations. Restoration of the airport’s domed ceilings will begin in mid-July; additionally, replacement of the interior baggage system and a $1.5 million roadway signage program will begin in early 2009.

One of the first projects will be a $5 million renovation of the inbound baggage handling systems and six carousels, which is expected to be complete in the spring of 2009. The program also includes renovation of the main terminal and concourses A, B and C.

Source: REBusinessOnline

November 30th, 2007

Construction group cleared on all accounts in St. Louis Metro lawsuit

A jury in St. Louis County today ruled in favor of the Cross County Collaborative (CCC) on all counts in a lawsuit that was brought by St. Louis Metro over the eight-mile Metrolink extension from Forest Park to Shrewsbury.

Cross County Collaborative was a joint venture of four companies hired to design and manage the project. The companies which include Parsons Brinckerhoff, STV Inc., Jacobs Engineering Group and Kwame Building Group of St. Louis were fired by Metro in 2004.

Metro alleged mismanagement and fraud, and sought $81 million in damages. The jury rejected the claims and awarded nothing.

In a counterclaim, the CCC accused Metro of making them a scapegoat and damaging their professional reputations, and sued for $6 million for work it performed. The jury awarded the team $2.56 million.

After Metro terminated the CCC and took over management of the project, the light rail opened in August 2006, 15 months late and more than $126 million over budget.

Richard Hardcastle, attorney for the CCC, said in a statement “For more than three years we have maintained that Metro wrongfully terminated the CCC and that its claims were baseless. We are pleased that the jury has agreed with us on all counts.

“It was a long process but one with great significance to the citizens of St. Louis. With this issue behind us, each of the firms looks forward to continuing to serve the St. Louis community in future assignments.”

June 13th, 2007

Highway construction costs rising, bids slowing

High demand for highway construction means many contractors are carefully choosing the projects they bid, and state transportation departments are reporting a nearly 50% decrease in the number of bidders per project over the last four years, according to an article in this week’s Engineering News Record.

The trick for contractors is getting current projets to completion, given rising costs for asphalt, cement and labor. Asphalt prices are up 5% over last year, according to McGraw-Hill Construction Analytics/ENR, following a 42% increase in 2006 and a 10% hike in 2005. Likewise, concrete prices have been rising about 6% a year since 2005.

Suppliers who once offered 100-day price quotes on prices for cement and asphalt now will only commit to 30- or 60-day quotes. In an effort to keep projects moving along, state transportation departments are accepting fuel price escalation clauses and flexible start dates. Many, including the Missouri Department of Transportation, are turning to design-build delivery as a solution to cost volatility.