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?

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

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

St. Louis-based Walton Construction Co. has completed construction of a $15 million Wal-Mart Supercenter located in Jacksonville, Illinois, according to REBusiness Online. The grand opening for the 200,000-square-foot retail center was held last week. During construction, 90 percent of the project subcontractors hired by Walton were residents of the Jacksonville community.

Source: REBusiness Online

Perhaps the most accurate word for predicting the construction economy in 2008 is “tumultuous,” according to Ken Simonson, the chief economist for the Associated General Contractors of America (AGC).

Simonson reports that some nonresidential segments such as energy will grow, while others such as lodging will slow or decline. Diesel fuel, copper and steel prices will increase but a slumping demand for gypsum and other residential construction products may help moderate building costs.

Labor accounts for roughly half the cost of a construction project, and shortages mean higher wage. Simonson predicts that some crafts may experience labor shortages, but workers in the residential specialty trades will be plentiful.

Overall, Simonson predicts overall nonresidential building cost increases of less than 6% and wage increases from 4.5% to 5.5%.