Drone use expected on construction sites
Developers, owners and contractors are planning to use unmanned drones to take aerial photographs of work in progress at construction sites. A small number of contractors are already using the remote controlled miniature aircraft with approval from the Federal Aviation Administration (FAA). The FAA has said it is illegal currently to use drones for commercial purposes without a formal exception granted by the FAA. The FAA is currently drafting rules for commercial use of drones but those rules are not expected to be finalized until 2017. Under consideration is (i) limiting drones to flying in daylight only, (ii) limiting weight to under 55 pounds and (iii) limiting height of flight to 400 feet above ground. Insuring the drone and the risk of bodily injury or property damage from its operation is neither easy nor inexpensive currently. Less than 5 insurers reportedly offer standardized coverage for drones although both availability of coverage and pricing are expected to improve in the next year. click here to read more
Construction spending up and job growth increases in 2014
Nationally, total construction spending for the year reached $961 billion dollars or 5.6% more than in 2013. Across industries, the Commerce Department reported 3 million new jobs in 2014. These new jobs are expected to further stimulate new building. The American Institute of Architects is predicting that spending on nonresidential construction will increase 7.7% in 2015 and 8.2% in 2016. click here to read more
Construction Costs Are Rising
As the commercial construction market recovers, commercial construction costs are rising. M.A. Mortenson Co., which tracks construction costs in major markets nationally, is telling its customers to budget for a 5%-6% increase in construction costs this year. With so many contractors and trades having failed and left the industry during the prolonged recession, there are fewer players now. The reduced competition and the shortage of skilled labor are contributing to rising labor costs in construction. click here to read more
South Florida Construction Contracts Up 52% in 2014
According to Dodge Data & Analytics, construction contracts awarded in South Florida increased by 52% in 2014. Ten billion dollars of construction contracts were awarded in Miami-Dade, Broward and Palm Beach Counties during 2014 as compared with $6.6 billion in 2013. Residential construction in the form of multifamily and condominium development led the way by increasing 62% in 2014 ($6.62 billion in 2014 versus $4.09 billion in 2013). Nonresidential construction in South Florida meanwhile grew at a rate of 35% in 2014 ($3.39 billion in 2014 versus $2.52 billion in 2013). click here to read more
VA Seeks Help from Army Corps of Engineers
It will come as no surprise to Central Florida construction professionals that the VA's new hospital still under construction in Denver is running 3 years behind schedule and will be approximately $500 million over budget. The VA's issues at the Denver hospital under construction resemble the massive delays and cost increases seen during the VA's administration of the large VA hospital in Lake Nona, Florida. After a recent adverse ruling by an Administrative Judge in a case brought by the Construction Manager, Kiewit-Turner, the VA has decided to transfer to the Army Corps of Engineers the responsibility to manage design, construction and budgeting matters for the half-completed Denver hospital. The VA has also asked the Army Corps of Engineers to conduct a complete examination of its major construction projects across the country. We can only hope that study includes the local Lake Nona hospital project. click here to read more
