Though the U.S. commercial construction sector has made strides from where it was a year ago, a new industry report shows that ripples from the recession are still having an effect.
Released April 2, the latest Construction Economic Update from Associated Builders and Contractors Inc. shows that total U.S. nonresidential construction spending fell 1.6 percent in February to a seasonally adjusted annual rate of $555.4 billion, according to data from the U.S. Census Bureau.
Even with that slight dip – and 12 of 16 nonresidential subsectors experiencing decreased spending for the month – the report noted that nonresidential construction spending remains up 6.4 percent from a year ago.
According to ABC Chief Economist Anirban Basu, Associated Builders’ construction backlog indicator accurately predicted a drop in construction activity in the early months of this year due to factors such as rising commodity prices and debt ceiling issues.
“ABC’s CBI declined during last year’s fourth quarter, largely due to the soft patch that emerged economywide early last year,” Basu said in the report. “If it wasn’t for the mild winter, construction spending would have fallen even more sharply in February.”
Slow start Year-to-date in Springfield, permit numbers are comparatively low. According to permit data at
SpringfieldMo.gov, seven commercial permits with a combined estimated value of $32.78 million have been awarded to date through April 11 for new commercial buildings, additions and renovations. By comparison, in 2010, there were 339 commercial permits for new construction, additions and renovations with a combined estimated value of $130.28 million. The bulk of those commercial permits were for additions and renovations, and 30 of those permits were for new buildings. In 2011, there were 273 permits issued, with an estimated value of nearly $269 million – and 39 of those permits were for new commercial buildings.
Current commercial building projects under construction in the Ozarks include Mercy’s roughly $105 million orthopedic hospital to apartment complexes targeting college students and two Walmart Neighborhood Markets well under way, with two others in the works.
The latest data from the American Institute of Architects suggests that construction spending will pick up in the months to come.
In March, the AIA announced that its Architecture Billing Index was positive for the fourth consecutive month.
The index is based on responses to monthly Work-on-the-Boards surveys sent to a panel of AIA-member-owned firms, and it gives a nine- to 12-month glimpse into the future of nonresidential construction, according to an AIA release.
The index for February was 51, up from 50.9 in January, reflecting a small increase in demand for design services, as any score higher than 50 indicates increased billings, the release said. The new projects inquiry index was at 63.4, up from 61.2 in January and at its highest level since 2007.
Fair biddingAs more construction comes down the pike locally, several industry groups want to make sure all parties working on Ozarks projects are using the same bidding practices.
A task force comprising representatives of groups including Springfield Contractors Association, the Springfield chapter of AIA and the Construction Specifications Institute earlier this year revised a set of bidding guidelines originally crafted several years ago.
Dave Foreman, SCA vice president and co-chairman of the committee that revised the guidelines, said they were created to make the bidding process more seamless.
“Mainly, it’s to level the playing field and to help all the parties so that it would be fair … and the owners would get the most bids and the best costs possible for them,” said Foreman, who is chief estimator with APAC Missouri Inc.
There are basic guidelines such as ideal bid times and days – 7 p.m. on Tuesday, Wednesdays or Thursdays – and other guidelines are divided by industry sectors: architects and engineers; general contractors; and subcontractors and suppliers.
The guidelines are posted to
SpringfieldContractors.org, where there also is an online bid calendar available.
