One of the more deceptive characteristics of the market in summer of 2015 is the bidding activity. For general contractors, the activity is slow, maybe slower than normal; but there is action taking place in the next tiers down the food chain. Within the past 60 days there has been a marked shift in the subcontractor bidding environment, a shift that bears watching if you’re an owner.

Subs and suppliers are busier. In part this is due to the releasing of projects that had been delayed over the past year or so, or had a general on board while designs were being completed. There is also the reality that the skilled labor force is nearing full capacity. Within the majority of the trades, the halls are empty. One other consideration is that the Pittsburgh market may finally be shifting like the rest of the country to delivery methods other than design-bid-build. And subs have been bearing more of the burden of this extended slowdown, carrying an unfair share of project costs because of longer (meaning slower) pay cycles and increased administrative expense. There will be some hay-making while the sun shines.

Any or all of these factors will move the focus of the bid market from generals to subs and specialty contractors. The evidence of this is in higher prices and less participation. More than a few generals have expressed the sentiment that the latter is a reality now, especially when it comes to budgeting. Owners that haven’t brought a project to the market in six months or more may find it a very different environment. It may be too early to declare it a seller’s market but construction is no longer the buyer’s market that has existed since 2009.

For those looking ahead to big bidding opportunities, the PA Builders Exchange reported this morning on an $81 million new treatment plant for West View Water (with a general package over $40 million) that should bid in the fourth quarter. Check out the details at http://tinyurl.com/oq6qnz6. On the commercial side, Milhaus Development selected Strada Architecture and Rycon Construction as the team for its $100 million redevelopment of the 12-acre site west of the 40th Street Bridge in Lawrenceville.

There has been a surprising amount of buzz surrounding the news that Shell closed on the land that on which it proposes to build an ethane cracker. I think that’s a sign of how thirsty we are for news about the decision. From the standpoint of the decision to proceed, the closing is kind of a non-event. Shell can still decide against the project for the time being or walk away and sell the property to someone else.

The bigger news about the cracker is that the needed permits are reported to be in hand. I assume that means that there has been informal word given, since it seems unlikely that DEP would have granted approval without someone announcing it. This, if true, is a big deal because it removes virtually all obstacles to the decision. Shell still wants to prove the long-term sustainability of the gas supply (something of a no-brainer) and then agree to invest in Monaca instead of other capital projects. So far, any guesses I’ve heard about when the final call will be are just that: guesses.

The last few weeks have seen the start of a bunch of small projects that have been around for a while. Village Theater Co. chose A. Martini & Co. to build it $2 million new theater in Sewickley. That’s the third new building to get underway in Sewickley this month. Oberg Industries awarded W. K. Thomas & Associates the contract to build its 67,000 sq. ft. expansion. Chapman Properties is getting ready to start construction on a new 23,575 sq. ft. Skyzone trampoline center in Monroeville.

In news of more companies entering the Pittsburgh market, Reynolds Construction opened an office in the RIDC O’Hara. The new office is located at 634 Alpha Drive, Suite 1100, Pittsburgh, PA 15238. The Pittsburgh office will be led for now by company President Jeff Merritt.

Waukesha Pearce Industries awarded the construction of its new $8 million, 45,000 sq. ft. facility to New-Belle Construction. The high-bay building will be used to service and distribute WPI’s heavy gas engines, being used by the natural gas industry. The building was designed by Desmone Architects.

Uber selected Continental Building Systems as construction manager for the build-out of its new 53,000 sq. ft. space in Lawrenceville.

TBI Contracting is starting construction on two new buildings in Sewickley village. The first is a 10,000 sq. ft. commercial building that will house a new Crazy Mocha on the ground floor. The second is the Vanguard Village office, a 30,000 sq. ft. spec building being developed by Forbes Trail Development and PWA Real Estate.

Those commuters creeping up or down Greentree Hill will soon see the the new Greentree Primary Care Center II coming out of the ground. Burns & Scalo Real Estate is developing the 44,000 sq. ft. GPCCII as a spec building for healthcare users.

With all the recent announcements of big projects in the pipeline, it’s hard not to be bullish on construction in Western PA; however, the current market is less than target-rich. Bidding has slowed significantly, even for Memorial Day, and it appears that the early summer period will be slower than last year until some of the projects that are in preconstruction are put out by the CM.

Among the projects awarded recently are the $9.8 million CCAC West Hall, awarded to Allegheny Construction Group; a $1.7 million renovation and expansion of Riverview Children’s Center in Verona, which will be built by A. Martini & Co. and the St. Sebastian’s Narthex expansion in Ross that Rycon Construction is building. PJ Dick has started work on the $100 million+ research and office for Johnson Controls in York PA.

Two interesting real estate deals announced this week should bring construction opportunities as early as the end of summer. Uber Technologies signed a lease in the 53,000 sq. ft. former Restaurant Depot space in Lawrenceville. Strada Architecture is designing the fit-out. Uber is in the process of selecting a CM. A list of contractors could not be confirmed but the company is rumored to be talking to Continental Building Systems, PJ Dick and Franjo. Faros Properties unveiled its plans for the former Allegheny Center Mall yesterday, branding the 1.2 million sq. ft. space as Nova Place. Estimates of the investment needed were in the $200 million range.

With some of the more desirable projects in the region in the final stages before starting – Ensinger Plastics, GE, Union Trust Building – there were a handful of nonresidential projects started in April that underscore the strength of the regional economy at the moment.

In the ultra-tight industrial/flex space market, Al Neyer got underway with a new 47,245 sq. ft. building at Elmhurst’s Airside Business Park in Moon Twp. and the new 86,000 sq. ft. warehouse and office for Paragon Foods at the RIDC Thorn Hill Industrial Park in Marshall Twp. Buncher started work on the 77,000 sq. ft. Building 2000 at its Jackson’s Pointe Commerce Park north of Zelienople. Modal Construction is building industrial flex Building 3 and 5 for the Ridilla Family Trust in Hempfield, totaling 52,000 sq. ft.

Suburban neighborhood retail continues to flourish in the face of an industry-wide shift in balance between bricks-and-mortar and online sales. Montana’s Ribs and Chops is being built out by Gilcon Construction at Southpointe Town Center. Another Five Guys Burgers is going into the Old Mill in Washington PA. Metro Properties has started the next building at its Park Place development at Race Track Road and Route 19.

School work is gearing up for summer. Yarborough was awarded the general contract for a $1 million vestibule security project at several Hampton Township schools. Work in underway at Moon, West Allegheny and North Allegheny School District projects. In the private sector, Groom Construction from Boston has started on a new 10,000 sq. ft. Kiddie Academy in Bridgeville.