Category: Regional construction

Rays of Sunshine for Public Work

Construction in the public sector has been a tougher place to make a living for the past couple of years. While adequate funding for transportation projects still seems like a coin toss at this point, there is some activity in higher ed and K-12 that offers hope. Pitt is taking Predetermination of Responsibility submissions for two of its projects on Nov. 25. These are essentially pre-qualification forms to be approved to bid the $23 million Clapp-Langley complex and the $3.5 million Chevron Science Center jobs that DGS will put out to bid, probably in December. The projects will bid as separate prime contract offerings and won’t be from Pitt’s invited list of contractors but the PDR process keeps the projects from bidding to unqualified contractors. You can find the PDR at http://www.facmgmt.pitt.edu/CurrentProjects/

For those with a longer horizon, two major new school projects are moving ahead in the early stages of planning. West Jefferson Hills selected Turner Construction as CM for their $70 million new high school. Selection of an architect will come after the holidays and bidding is not likely until 2015. On a similar timetable, Montour School District is reviewing architectural proposals for its new $55 million elementary school.

In private sector news, Mike Coates Construction was selected for the general construction package on Duquesne Light’s new $5 million warehouse in McKeesport. And James Construction started construction on the $15 million expansion of the Westmoreland Museum of American Art in downtown Greensburg. PMC Management has started work on the conversion of the upper floors of the Clark Building into 144 apartments.

Ag Sciences Results

WVU’s new agricultural sciences building bid earlier this afternoon and PJ Dick submitted the low bid, edging out Mascaro by $502,000 or 0.6% on $77 million. The published budget for the project was about 10% lower than the bids but the spread tells you that the budget – if it was indeed that low – was off. Here are the base bids:

PJ Dick – $76,898,000
Mascaro Construction – $77,400,000
Walsh – $80,477,000

Catching Up on Some Project News

While the local (yawn) elections were taking place and the pitched battle over highway funding rages in Harrisburg, a variety of interesting projects are being priced or otherwise in competition.

Chuck Hammel was in the news with a small but expensive conversion of 2500 Smallman Street into what he calls ‘city houses’ but there was progress of sorts on a much bigger project that Hammel is planning. Along with Oxford Development and Lincoln Properties, Hammel is proposing 300+ units of apartments just east of the Cork Factory. The project should be $40 million or more. Massaro Corp. has been involved helping with preconstruction for a couple of years. Both they and Mascaro had interviews with the development team last week to move forward in 2014.

Massaro, Mascaro, PJ Dick and Martini are submitting proposals on the 18th for the CM-at-Risk for Central Catholic’s $15 million STEM building. Massaro, Mascaro, PJ Dick, along with Jendoco and Gilbane are putting in proposals on the 14th for a significant ($25 million or more) renovation/remediation at Westinghouse’s headquarters in Cranberry Twp. Both those projects are still being designed by Stantec.

In news from West Virginia, WVU is taking design/build proposals from Astorino, Gilbane, Mascaro & PJ Dick for their new $13 million baseball stadium. Mosites Construction was the apparent low bidder on several packages for general trades, demolition & concrete on Ruby Hospital’s second phase of the $140 million South Tower expansion being construction managed by Yates Construction. A few exits south in Bridgeport, Dominion is taking proposals from development teams for a new 100,000 square foot office in the White Oaks Business Park. They are working with six teams including Clayco, March Westin, Alter Group, Regency, thrasher & WYK.

Following up several of the smaller projects that bid in September/October, Volpatt Construction is underway with St. Clair Hospital’s $1.2 million urgent care facility at 2000 Oxford Drive in Bethel; St. Clair also chose Massaro for their $2 million interventional radiology suite at their main hospital; A. Martini was awarded a contract for Blind & Vision Rehabilitation Services’ $4 million-plus tenant improvement in their new building on the Boulevard of Allies. Rycon is working on the $3.5 million build-out of the former Dick’s space in South Hills Village. The space will become an Ulta and DWS store.

The Shutdown and other thoughts

Wednesday’s deal to re-open the government and raise the debt ceiling provided some needed relief to investors but the end result (and the shutdown itself) produced more yawns than anything else.

First some thoughts on the shutdown: the 16-day furlough saved the government little money (workers will be paid retroactively) but did cost lots in lost revenues. It will also probably shave about half percent from the fourth quarter GDP – a number that is already expected to be low. Some of that will bounce back in early 2014 but some is just output lost. In the end the high cards were in the president’s and Democrats’ hands. There was no movement on Obamacare or the budget. Very little of substance was done except to kick the problem down the road three months. Congress won’t get a raise. The sequestration cuts remain in place.

The sad part is that the shutdown refreshed the memories of business people that our government is bleeding money and doing nothing to stop it. The big casualty of the shutdown is that uncertainty came back into the picture. With most major projects running into budget problems (Chevron, Industrial Scientific, etc.), the last thing we needed was uncertainty about the economy going forward.

On the bright side, there are some projects moving ahead. Bakery Village Apartments are blowing and going and there are reports that the office buildings that are part of Bakery Square 2.0 are attracting hot interest and may start sooner in 2014. Prominent Fluid Controls selected BRIDGES to do its 21,000 sq. ft. expansion in RIDC Park. PJ Dick should be starting Seton Hill’s $14 million Natural Health Sciences building.

Washington Co. Chamber of Commerce threw a party to celebrate the erection of the two buildings at Zenith Ridge in Southpointe II, which is the Ansys campus that Burns & Scalo is developing as partner in Quattro LLC. Design builder Clayco Construction has cast five-story exterior walls on site – with brick embedded in the pour – and lifted them in a matter of a few weeks. The steel floor joists are following rapidly on the first building already. An aerial photo of the progress is below.

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At the party, Jim Scalo mentioned that his company was ready to build a spec office he calls the Conchord near the airport in the RIDC West property. As planned originally, the one-story building will be 60,000 sq. ft.

Butler’s Hotel Boom

According to the Pittsburgh Builders Exchange, bids are being taken by Tri-C Construction for a new 80-room Holiday Inn Express in Butler, PA. The new hotel will be on North Duffy Rd. across from the Butler VA Hospital in the Butler Crossings shopping center that is being developed by Tri-C’s parent company, Cedarwood Development. The property is the first of 2 hotels planned for the same corridor. Horizon Properties from Southpointe received approval from Butler Township to develop another 80-room hotel less than a mile away on New Castle Rd., this one a Hampton Inn flag.

The more inexplicable project is a third hotel but a few mile away in downtown Butler. The city redevelopment agencies received an RCAP grant to make an 80+ room hotel happen behind Main Street near McKean St. Developer J S Capital – the owners of the Fairfield Inn up in Slippery Rock – is reportedly involved in the Butler project, which will be a Marriott flag.

There are actually some fundamentals supporting these 200+ rooms of new hotels. For one, the gas industry is more steadily mobilizing in Butler County. Western Butler is adjacent to the more active areas in PA right now because of the Utica Shale exploration that is taking place in Lawrence and Mercer Counties. More importantly, the occupancy and revenue per room umbers for the limited hotels in the Butler area are relatively high. With a new medical center being built at the VA, visitation is expected to increase. The state aid for the downtown project also props up the fundamentals, reducing the private developers exposure significantly.

Highway Bill Deja Vu

House Republican Leader Mike Turzai announced yesterday that he would put a highway funding bill up to a vote next week to help Gov. Corbett fulfill his pledge to work on the state’s aging infrastructure. Turzai is not in favor of Senate Bill 1, which failed to get House action in June, but he indicated that what he would put forward for a vote would be in the neighborhood of the $2.5 billion the Senate approved.

The highway and transit improvements that such a bill would cover will still actually be inadequate to the maintenance and repairs needed but $2.5 billion will help keep the amazing economic progress that has been achieved in Western PA from eroding. Such an infusion will also allow highway contractors a chance to keep employment levels growing.

As an example of the current conditions, only one significant PennDOT project is out to bid in the western half of the state at the moment, the $15-20 million Route 28 widening at the I-579 interchange. September-October is typically a time when a number of major projects are lined up for winter starts.

The $17 million WVU baseball stadium has been short-listed. Design/build proposals will come from Astorino, PJ Dick, Gilbane and Mascaro.

In the pipeline, engineering/construction firm Burns & McDonnell was in the region during the past couple weeks pre-prequalifying contractors for the construction of a natural gas processing plant for Williams that will be located in southwestern Mercer County. The project is reported to be somewhat smaller than the Houston plant but should still be in the hundreds of millions in construction eventually. PPG Industries announced yesterday that it will take 120,000 sq. ft. in the empty Building 4 on Westinghouse’s campus in Cranberry Woods to consolidate the headquarters of its coatings business. The company has also been planning an expansion of its research facilities in Harmar, a project rumored to be in excess of $15 million.

This Week’s Notes

Public higher ed construction isn’t exactly booming but Penn State has a handful of interesting opportunities out now. PSU is looking for qualifications from CM’s for a $67 million data center project (2 buildings actually) in State College & Hershey; and for design/build proposals for a $7 million mushroom research center and $11 million bakery/warehouse expansion in State College. The university is also hiring architects for a $10 million student center in York and a $25 million student enrichment center in Harrisburg.

Down at WVU, the $80 million Ag Sciences Building has gone out to bid to Mascaro, PJ, Turner, Walsh & Whiting-Turner. Iron Mountain is rumored to have selected Turner for the $25 million vault expansion in Boyers, PA. Another round of budgets from 80% documents is expected from Mascaro, PJ Dick & Rycon for Noble Energy’s new 150,000 sq. ft. HQ tenant space in Southpointe.

Highmark selected Landau Building Co. as CM-at Risk for the $15 million imaging project at Jefferson Hospital. Central Catholic has narrowed down the field of architects for its new $15 million STEM building to Astorino, Desmone & Stantec.

Work Starting

Ground was broken this past week for the $70 million Gardens at Market Square being developed by Millcraft and built by Turner Construction. While that was the biggest splash, construction is getting underway on other projects that were both under the radar and on the screen.

PJ Dick has started on a $12 million, 48,000 sq. ft. expansion of Fuhrer’s refrigerated warehouse and offices on South Side. Another warehouse project, a 68,322 sq. ft.  job for Restaurant Depot is getting underway in the Strip by design/builder Oliver/Hatcher Construction. Faros Properties picked Turner Construction to do the first phase of their renovations to the Washington Plaza Apartments, a $3 million project; and Carl Walker Construction has started repairs to the Washington Plaza parking garage.

McKeesport Area School District awarded contracts last week for its $15 million Founders Hall expansion. The successful contractors were Gurtner Construction for general; R & B Mechanical for HVAC; Wheels Mechanical for plumbing; and A-1 Electric for the electrical.

A Burst of Public Work

State and local governments – including school districts – have been plagued by emptier coffers and reduced tax revenues for several years. That reality has reduced capital spending from the public sector, although a number of larger projects have moved ahead. At the current moment, however, a handful of $15-30 million public jobs are bucking this trend.

Over the next 30-60 days these projects will bid: $18 million Holiday Park Elementary School in Plum (Aug. 26); $34 million East Liberty Transit Center (Sept. 5); $19 million Frazer Elementary/Middle School (Sept. 18); $30 million Cathedral of Learning Elevator Modernization (design/build due Oct. 10); and the $23 million Fox Chapel High (tentatively scheduled to go out mid-Oct.).

In the private sector, the $15 million Westmoreland Museum of Art took bids on its expansion from Jendoco, Massaro and James Construction. The $70 million Gardens at Market Square office/hotel development broke ground this week. Massaro Corp. was selected as the CM At-risk for the $14 million Meadville Medical Mall and a $2.5 million renovation to Pitt’s Barco Law Library. Turner was selected as CM for the $28 million Carnegie Science Center expansion. Dollar Bank awarded the contract for its new Richland Mall branch to MBM Contracting.

News to Start the Week

Last week ended on a sad note with word that Pat Navarro had passed away. Navarro led his family’s business to be one of the region’s top three or four contractors during the ’60’s and 70’s. He also provided the training ground for a handful of executives who have gone on to run or own contractors since, including Glen Gates and Mark Davis from BRIDGES and Joe Burchick from Burchick Construction. Burchick reflected on Navarro’s legacy in the Post-Gazette’s obituary.

http://www.post-gazette.com/stories/local/obituaries/obituary-pasquale-pat-navarro-construction-companys-owner-commanded-respect-698892/

On the construction front, A. Martini & Co. was chosen as CM at Risk for the $30 million vertical addition at the Indiana Regional Medical Center. Mascaro was successful in landing the fit-out of the 40th-42nd floors of the USS Tower for UPMC Health Plan. Among the RFP’s currently out there now are the Meadville Medical Mall project, for which Landau, Massaro and PJ Dick are putting in proposals, and the $3 million Washington Plaza Apartment renovation. Faros Properties has asked Massaro, MBM and Rycon for proposals.