October 11, 2022

CT Construction Digest Tuesday October 11, 2022

Stamford Wrecking Eyes Brass Factory Demolition Completion By December


The city of Waterbury, Conn., once known as America's "Brass City" due to the many brass manufacturing plants located within it, is now, via its Waterbury Development Corporation (WDC), demolishing many of the factories and taking steps to clean up the contaminated sites to allow for future development.

The WDC has hired Stamford Wrecking Company to complete the second phase of the demolition of the former Anamet site located at 698 South Main Street, which is currently owned by 698 South Main Street Inc., a single-purpose entity created to redevelop the property.

The site was used for manufacturing purposes from 1812 to 1977 by Benedict & Burnham Manufacturing Company, American Brass, Anaconda American Brass and ARCO. The majority of the site is currently vacant.

To cover the cost of the demolition and clean up, the city was recently awarded $2 million in USRAP funding, as authorized by the State Bond Commission, to use toward Phase II of the Anamet project. It also was awarded $2 million in DECD Brownfield Municipal Grant Program funding and $200,000 in NVCOG EPA RLF funding to use at the site.

"Both funding sources will further demolition, remediation and eventual redevelopment on the site," according to the WDC.

"The 1-acre site sits just outside downtown Waterbury with close proximity to highway, rails and phase 2 of the Waterbury greenway project," said Thomas Hyde, the WDC's interim director. "[The 698 company] was created in 2017 to acquire the site and has been working to remediate and redevelop it."

Phase 1 demolition was completed by Manafort Brothers and six buildings were demolished.

"The site was recently advertised for redevelopment," said Hyde. "Decisions on the end user will be made in the coming months."

For the second phase, which began in early August, Stamford is demolishing three large buildings. The project should wrap up the end of the year.

The first building, which is 80 percent demolished, is Building 33/33A, a 16,000-sq.-ft. single story high-bay storage structure that is 25 ft. tall.

"The demolition is being performed under a State of Connecticut Department of Health Alternative Work Practice [AWP] due to the poor condition of the structure," said Bryan Terlizzi, Stamford's senior project manager. "At this time, the building is down and we are working on cleaning up all the debris and should be done within 1.5 to two weeks. For all the buildings that we are demolishing, we're only doing the above grade portions. All of the concrete foundations are staying in place."

The second structure (15,000 sq. ft.), referred to as Building 27/27A/27B, is based on three interconnected high-bay sections that are two stories and 40 ft. tall.

"This is the former powerhouse that housed all the boilers and mechanical equipment that ran all the various former buildings on the site," said Terlizzi. "It is also in poor structural condition and will be demolished under an AWP process. We started the demolition on August 18, and we expect it to be ongoing for the next four to five weeks."

The third building, located along South Main Street, is an 11,000-sq.-ft., four-story former office building.

"We're going to perform a traditional asbestos abatement prior to demolition, where we'll remove all the contaminated materials," said Terlizzi. "Once it is cleared by the environmental company, we will do the demolition in a standard manner where the materials are going off site as clean demolition debris."

All the utilities were disconnected for the first phase and there are no active utilities beneath the site.

Building 33/33A has had its share of difficulties.

"It was a challenge because it was constructed along the Naugatuck River and we had to implement what is called a turbidity barrier, a device that is installed in the river so that in the event any debris falls into the river, it doesn't float away," said Terlizzi. "The curtain keeps the debris along the shoreline. The building is down. Due to its location by the river, we had to start from the north end, which was not along the river, and work down to the section that was by the water. Everything was methodical — we just pulled everything in toward the slab so that no materials ended up in the river and we did that successfully.

"The second building has a couple of challenges, one being that there are various basement and tunnels underneath the slab, which is not strong enough to hold up our heavy equipment that we are using," he added. "We've overcome that by using our Volvo 460 high reach excavator, which has 92 feet of reach and allows us to perform the demolition outside the building footprint. The other challenge that we are going to be faced with is the approximately160-foot-tall smokestack, which is in poor condition — there is severe cracking through all the bricks. Once the building is down, we are going to approach that structure. We will remove the first 100 feet or so with a man in a bucket lifted by a crane and once we get it down to a reasonable height, we can manage it with excavators to bring it down to the sub elevation."

Bringing down the office building won't be easy as it is directly adjacent to the sidewalk along South Main Street.

"When we get to the front of the building, we're going to implement certain traffic control patterns to make sure no pedestrians or cars are endangered by our work," said Terlizzi. "We are going to use the Volvo high reach excavator to reach up to mechanically demolish the face of the building so that we can control all of the debris so that nothing gets outside of the controlled work area along the street."

To ensure that no asbestos flakes and other contaminated and non-contaminated debris is blown away by the wind, water is being sprayed via a HDK water misting machine that has a range of up to 300 ft. to shoot mist and water.

"It is run throughout the day and is basically placed along the site based on the wind conditions," said Terlizzi. "We are moving it from place-to-place and we are keeping the material wet. We have captured dust particulates that may become airborne."

Equipment-wise, crews are using the Volvo 460 high reach excavator, a 165,000-lb. Volvo 700 excavator, Bobcat 220 skid steers, a Caterpillar 973 track loader and several Cat 320 excavators.

Planning is essential for dealing with dilapidated buildings that contain contaminated materials.

"It is especially so when you have the environmental challenges that we have with these buildings that have failed structurally," said Terlizzi.

The safety and health of the workers and the public also is paramount for Stamford. All the crew members have been trained and licensed to work with hazardous materials, and they are wearing half-faced respirators and coveralls when inside the regulated work area.

"We have them go through a shower system when they leave the work site," said Terlizzi. "They take off the coveralls that may have come in contact with asbestos contaminated materials. Waterbury hired an environmental consultant that does perimeter air monitoring around the work area throughout the day to confirm that there are no emissions of asbestos particulates that leave the work area. They are testing air samples to make sure we are in compliance with the state regulations. Safety is paramount; it is the number-one concern. We want to make sure our guys show up to work every day and get home safely to see their families every night."

Currently there are 12 Stamford personnel on site, which will increase when the asbestos abatement crews arrive.

Terlizzi is supported by Superintendent Wallace Hitchcock.

"Wally has been with the company for over 25 years, and I've been here for 13 years," said Terlizzi. "We have been working on projects ever since I joined the company. He is one of our most experienced superintendents and has a long track record of handling these large-scale environmental demolition projects from start to finish with successful completions — on time and under budget. Stamford wrecking has been in business for almost 100 years and most of our operating engineers have been with the company for more than 20 years. The operators that we have working on this site are specific to this type of work because of their asbestos contaminated materials training and are all experienced in dealing with different demolition projects."

Terlizzi anticipates crews will handle more than 6,000 tons of materials.

"About 50 to 60 percent of the debris is going to be handled as asbestos containing and it is going to a landfill in New Hampshire that is permitted to receive this material," he said. "The remainder is going to be handled and dispersed as non-contaminated material."

The contaminated material is being transported to New Hampshire by truck.

So far, no major equipment issues have arisen.

"This isn't going to create any novel wear and tear on the equipment," said Terlizzi. "All of our excavators have various attachments, whether they be grapples, concrete processors, hydraulic hammers or standard buckets. We're equipped with attachments to handle different types of materials. If we're dealing with a lot of steel, we'll put the shears on and if we're dealing with concrete and brick, we'll put the processors to bring everything down to manageable pieces to dispose of.

"It's standard maintenance so far and most of it is done either before the start of the day or at the end of the shift," he added. "It has not resulted in any down time during the day. The typical greasing and maintenance are done during off-hours. Our senior mechanic for the company oversees the maintenance and repairs of the equipment on site."

Stamford purchases and rents equipment from dealerships such as H.O. Penn Machinery in Newington, Conn., and Tyler Equipment Corporation in Berlin, Conn.

"It's really about handling maintenance internally," said Terlizzi. "We have our mechanics at our yard and in the field. We just source the parts we need from the dealerships.

"The interesting thing about demolition is that every building is different," he added. "When you have a lot of experience and understanding of being prepared, you know what to do. But since every project is different, we put in a good amount of time in the planning phase to evaluate the building and understand how it was structurally constructed, which allows us to come up with the game plan to demolish a structure."

Stamford has done a lot of work for Waterbury.

"We always praise them [Waterbury] for their forward thinking and efforts to clear up a lot of these old, worn-down manufacturing sites," said Terlizzi. "They do a great job to get these buildings rehabilitated or removed to keep the image of the city as good as it can be." CEG


Torrington officials fire school oversight firm

BRUNO MATARAZZO JR

TORRINGTON – A firm hired to provide oversight of the $179.5 million Torrington Middle/High School project is out of a job after the City Council and Board of Education voted to terminate its contract.

The move follows a series of votes by the boards in recent weeks over a nearly $1 million contract with Construction Solutions Group, or CSG, of West Hartford.

The company was hired last year to serve as an owner’s representative on the middle/high school building project starting to get underway at the site of the current high school on Major Besse Drive.

City and school officials are not saying what deficiencies prompted the move.

“We can do it, so we did it,” said Ed Arum, co-chairman of the building committee. “It’s a matter that was in executive session and everybody agreed and so forth. That’s it.”

An owner’s representative is someone hired by the owner of a project to manage and execute a construction contract project on their behalf.

CSG’s original agreement to perform owner’s representation services to Torrington was based upon a total anticipated project duration of 48 months for a total fee of $926,084.

Arum wouldn’t comment whether any contract deficiencies prompted the cancellation of the contract with CSG.

Arum pointed to language in the contract with CSG that the city could cancel the agreement “at any time and for any or no reason.”

Voters approved two referendums for the construction of a new middle and high school that will have separate entrances and wings for a three-story middle school and four-story high school connected by common facilities at the main level, including an auditorium and performance stage, two separate dining rooms and two gyms.

The new 310,000-square-foot building is on the current high school’s 31-acre site and the existing high school will remain operational during construction, then will be demolished once the new building is occupied.

The high school will be occupied by December 2024 and the middle school will be occupied by June 2025.

The school project building committee voted to remove CSG as the owner’s representative on Sept. 30 following an executive session.

The City Council followed with a similar vote on Monday. The City Council didn’t go into executive session but offered no reasoning behind the vote.

City Council member Keri Hoehne said the city should cut its loses at quickly as possible “so we don’t spend money and not get services for it.”

City Council member Armand Maniccia, who sits on the building committee, told the council the committee has been talking about this issue for the past three months.

“There have been efforts to come to an agreement to meet what CSG was supposed to do in their contract and there is no remedy,” Maniccia said.

A review of the building committee minutes for the past three months don’t found no mention of CSG except approval of payments of their invoices.

Following the meeting, Mayor Elinor C. Carbone said when the building committee and the Board of Education came to the city and explained there were deficiencies in the fulfillment of the contract obligations and they did not believe they could correct those deficiencies, that’s when they decided to terminate this contract.

CSG owner Jim Giuliano declined to comment on the council and building committee’s action.

“Given that this is a developing situation, I am not at liberty to discuss the details of this matter with you at this time,” Giuliano said.

Giuliano attended the City Council meeting on Monday urging the council to table the vote to terminate the contract, which was a late addition to the agenda. At the City Council meeting on Monday, Giuliano asked the council to table the vote to terminate the contract.

Arum said it’s up for discussion whether there will be a new owner’s representative hired to replace CSG.

Carbone said the city needs owner representation on the project despite the fact that O&G is doing the work and has been involved in numerous school building projects across the state.

“We still, I think, need representation to make sure “t”s are crossed and “i’s are dotted,” Carbone said.


Waterbury vote focuses on upgrading water infrastructure

LANCE REYNOLDS

WATERBURY – The city is seeking approval of a $25 million bond authorization request to fund five projects crucial to improving its water supply and distribution infrastructure.

Aldermen will be voting on the request during their meeting at 7 tonight in Aldermanic Chambers at City Hall.

The projects would be completed over the next three years, Rob Langenauer, superintendent of water, wrote in an email last month to Mayor Neil M. O’Leary. The $25 million bonding request follows a $17.7 million bond authorization in 2015 that upgraded some of the city’s water infrastructure.

Costs for each of the five projects were not included in Langenauer’s memo to the mayor.

Replacing five pumps and motors at the water treatment plant, which supplies 11.2 million gallons of water per day, or 80% of the city’s daily water supply, is the most significant project, Langenauer said. The plant has relied on its original pumps and motors since opening in 1987, and “obsolete parts” have caused one of the pumps not to work anymore, he said.

Pumps and motors provide drinking water, fire flow, storage capacity and pressures needed to meet “elevation challenges” throughout the city, Langenauer said. They carry electricity costs of at least $44,000 per month, he said.

A 1.5-million-gallon water tower on Hitchcock Road also needs to be replaced as its’ steel panel walls continue to thin. The 125-foot tall tower, built in 1968, is only operating at 75 feet as a hole has left about 50 feet unusable, Langenauer said. The entire tower would become unusable after the next leak since there wouldn’t be enough height to support fire flows and pressures, he said.

The city is consulting with the state Department of Energy and Environmental Protection to determine the extent of a remediation of polychlorinated biphenyls, a carcinogenic chemcal, in the soil surrounding the tower, adjacent to the Country Hills condominium complex.

A third project calls for replacement of a pump station at North Main Street which Langenauer called the “most important structure to the water distribution system.” Three pumps are needed to rotate equipment and provide stability to the station, which supplies to a storage tank on Blackman Road.

If the bond authorization request is approved, an existing 1.5-million-gallon tank on Blackman Road, suffering from “significant corrosion,” would be demolished to make way for two 1-million-gallon tanks, Langenauer said.

“If a failure were to occur, a major portion of the city would be without water or have discolored water with very limited options for improvement,” he said.

The final project would be the slip lining of a 42-foot pipe for a transmission water main on Thomaston Avenue, extending the pipeline’s usable life.

In his memo to O’Leary, Langenauer mentioned the water crisis in Jackson, Miss., which began in August after a river near that state’s capital city flooded due to severe storms.

The flooding caused the city’s largest water treatment facility to stop treating drinking water, leaving roughly 150,000 residents without safe drinking water, according to national news reports. The facility had been running on backup pumps due to failures earlier in the summer.

“This event highlights that an unknown can cause adverse conditions at any time if we aren’t prepared,” Langenauer said. “While similar in some ways, Waterbury has the opportunity to invest in its infrastructure while learning from other communities who didn’t or wouldn’t.”


Shelton seeks $3.6M in CT grants for downtown projects, road extension

Brian Gioiele

SHELTON — The city is seeking state grants that, if obtained, would provide millions of dollars for major construction work downtown and for the Constitution Boulevard extension.  

The Board of Aldermen, at its meeting Thursday, voted to allow the city to apply for two Connecticut Community Challenge grants — the first for $2.2 million for Canal Street reconstruction projects, the second, $2.4 million for extension of Constitution Boulevard

As part of the grant, the city must put up 50 percent of the requested amount, meaning Shelton would provide $1.1 million for the Canal Street reconstruction work, bringing the total to $3.3 million for all the planned projects. 

The city would also put $1.2 million into the Constitution Boulevard extension work, bringing the total amount available for the project to $3.6 million. 

Shelton Economic Development Corp. President Paul Grimmer told the aldermen that, once submitted, a response from the state could come within 45 to 90 days.

The Canal Street work focuses on reconstruction of Canal and Wooster streets; the engineering, design and construction costs for reopening the Wooster Street railroad crossing; and design and construction of the final phase of the Housatonic Riverwalk, from 235 Canal Street to the Shelton Canal Locks. 

“This is the culmination of nearly three decades of efforts,” Grimmer said about the proposed work along Canal Street. 

The work on Canal Street includes reconstruction of the roadway — including new sidewalks, handicapped ramps, lighting and brick pavers — from 235 Canal St. North along the road to the Shelton canal locks. 

Wooster Street reconstruction would include the same improvements from Canal Street to Howe Avenue. 

The city is also setting aside funds for engineering, design and construction of the Wooster Street railroad crossing, which has been closed for the past several years. All work on the reopening of the crossing would be done by the railroad company and paid for by the city. 

Grimmer said the city will initiate discussions with the state Department of Transportation about reopening the crossing. Shelton fire officials have stated in the past that the railroad crossing closure created a hazardous situation.

The crossing was first closed during the construction of Avalon Shelton on Canal Street. The city originally requested the crossing be closed, and after a hearing, the state DOT granted the request. It has remained closed off since. 

The Constitution Boulevard extension grant is for phase two of the road work. 

The city received $5 million from the state for construction of the roadway from Bridgeport Avenue into the Moss property to serve the Bigelow Tea development. 

“This latest grant would be for the second section … about 1,400 linear feet to take (the road) past the Bigelow development and which would allow the road to access six additional lots that the city had up for private development,” Grimmer added.


Southington High School relies on referendum for major improvements

Christian Metzger

SOUTHINGTON — A combined $23.7 million in improvements to Southington High School facilities will be on the Nov. 8 ballot for approval by voters. 

The two separate projects, a $17 million overhaul to sports facilities and a $6.7 million partial replacement of the school’s roof, are long overdue, according to school officials.

Many of the school’s sports facilities have not received a significant upgrade in 40 years, while the portion of the roof that would be replaced dates back to 1995.

School Superintendent Steve Madancy said both projects had unanimous support from the Town Council, Board of Education, and Board of Finance. Voters will ultimately decide if plans proceed since spending for both projects would be well above the threshold for referendum under the Town Charter.

The current proposal for the athletics facilities is a prospective three-year plan rolled out over the course of 2023-2026, with three main construction phases. In time, all the sports facilities will be completely renovated. The baseball fields, tennis courts, and the central stadium multi-sport turf field are of primary concern. 

Much of the current infrastructure on the fields does not comply with the Americans with Disabilities Act and is unable to suit the needs of spectators and students. 

The home bleachers on the main stadium need to be inspected yearly by a structural engineer to ensure they’re still able to maintain support, and almost entirely lack handrails for people to safely get up and down.

The track surrounding the main field has not been significantly redone since the 1980s, aside from spot repairs. The starting line had been worn all the way down to the concrete until being repaired recently, but the entire track still is in need of replacement.

“There hasn’t been a significant [change], other than a few things here or there done since the high school opened in ‘74,” Athletics Director Steve Risser said. “So I think there’s an understanding that we have to upgrade our facilities both for safety and for the experience that we have.”

Other areas like the baseball and soccer fields are also in poor condition, with dugouts that are inadequate to support the teams, light fixtures that are beginning to lean and are in constant need of replacement, and poor drainage.

“Our softball field, for example, there were times when it would rain and we couldn’t be on the field for three or four days because of the nature of how the field had sort of been worn over 40 years since that was started,” Risser said.

The $17 million would be put toward an overhaul of the entirety of the school’s athletic space. That includes new scoreboards, bleachers, resurfaced fields, new courts, along with improved lighting and drainage systems. There will also be the addition of an entirely new turf field that would allow the school to host multiple athletic events at the same time.

School district officials had planned to address the town’s three oldest elementary schools this year and send that plan to voters instead. But delays at the state level pushed the timeline for the elementary schools back. The high school projects, originally planned for 2023, were moved up to this year.

Community benefit

Officials noted that the repairs and additions to the facilities would do more than benefit the high school students, but everyone in the community. Residents often come to walk the track recreationally and other organizations use the fields for activities and events.

“This complex in general is not just used for the high school,” said Peter Romano, director of operations for the Southington schools. “It really is the heartbeat of Southington.”

The hope from officials is that, with passage of the funding at referendum, Southington High School will be able to provide a robust community space for years to come which residents can take pride in.

“Athletics is a huge source of pride in the community,” said Madancy. “Between the youth leagues, the arts, and the athletics, I think this is a hub of activity for the youth and the students in the community.”

Roof project

While a portion of the school’s roof was redone in 2019, there remains an 89,000-square-foot portion that still needs to be replaced. The roof was last replaced 27 years ago in 1995, which is seven years over the original 20-year warranty given for the roof.

With the roof being that old, it has begun to leak. Workers have been called periodically to perform the repairs, but school officials note that this is only a patchwork solution. The entire top of the structure remains in need of replacement.

“We’ve nursed it along and done a good job to get additional years out of it, but it’s time,” Romano said.

If the funding passes at referendum, repairs will be underway and completed through the summer of next year. The repair project will also help modernize the school’s infrastructure, with the addition of solar panels to improve the building’s energy efficiency.

School officials stress the importance of the referendum passing in November. If they’re unable to secure the funding they need, the condition of the current facilities is going to continue to degrade.

“The unfortunate thing is if for some reason the referendum doesn’t pass, we still have all these issues we have to address. They don’t go away,” Romano said.

“Those are the types of things that long term you can’t just ignore because you either have an accident or you just have a facility that you’re limited with its use,” Madancy added.

The school plans to make the full scope of the project available online. Plans can also be viewed by scanning the QR codes posted on-site at the high school grounds.


Developer seeks changes to ongoing 400-plus unit mixed-use development in Hartford’s North End

Michael Puffer

With 200 housing units completed and more under construction, Philadelphia-based Pennrose is asking Hartford officials for permission to modify plans for its “Village at Park River” development in the city’s North End.

The development is rising on nearly 40 acres at 1550 Albany Avenue that had housed the Westbrook Village public housing complex. The Hartford Housing Authority demolished the faltering complex to make way for redevelopment. 

Pennrose, through its Boston office, is spearheading an ongoing mixed-use and mixed-income redevelopment.

Since ground was broken in 2019, Pennrose and its local development partner – Hartford-based The Cloud Co. – have completed three phases, finishing 200 units in 18 buildings. A fourth phase – of 60 units – is under construction. Construction of 58 units under phase five is slated to begin next year.

The changes Pennrose is seeking will accommodate the sixth phase of development, which includes 76 units in two buildings on 3.2 acres. Once those are accepted, the company will submit site plans for this phase.

The request to modify the master development plan is on the Hartford Planning and Zoning Commission’s Oct. 11 agenda. 

Under the requested changes, the development will ultimately yield 412 housing units instead of 431. Other changes include trimming 19 parking spaces, a change in landscaping plans and dropping a requirement that one building be restricted to senior residents.

Charlie Adams, a regional vice president with Pennrose, said the reduction in scale is needed to accommodate boundaries of a flood plain.

While Pennrose is asking to drop age restrictions on one building, the company still plans to build it with features catering to senior tenants, Adams said. This change is needed to make phase six more competitive for federal and state tax credit equity and loan programs, he said.

Ultimately, the seven-phase plan will result in 31 multifamily residential buildings, with a mix of rental units and owner-occupied condominiums, as well as a community building on 30 acres. Plans include a mix of affordable and market-rate units.

The remaining 10 acres will host an 80,000-square-foot commercial development, Adams said. The plan is for it to be predominantly retail with some office and, potentially, residential upper floors, Adams said.  Pennrose and The Cloud Co. will work with Blue Back Square developer JDA Development on this phase, he said.

The site is being developed through long-term land leases between the housing authority and limited liability companies tied to Pennrose.

According to documents included with the special permit request, a Pennrose-backed LLC would lease the 3.2 acres needed for phase six, making an initial payment of $100,000 to the housing authority, followed by annual rents of $10,000 after the project is 96% occupied. That lease will run for 65 to 96 years unless a longer term is required for financing.


300 apartment units planned in Cheshire’s special development district

Hanna Snyder Gambini

The 300-unit Eastpointe at Stone Bridge Crossing project, if approved by town land use boards, would be the largest apartment development in Cheshire.

Plans for the project are currently before the Town Beautification Committee. Planning and Zoning Commission members will host a public hearing on the development before their next regular meeting Oct. 24.
 
Set on 30 acres in the town’s new special development district near 691, the project includes one-, two-, and three-bedroom market-rate apartments over nine buildings, plus a clubhouse, saltwater pool, patio, barbeque area, garage parking, dog park and other amenities.

The development would sit on property adjacent to 1963 Highland Ave., on a new town road, a cul-de-sac called Stone Bridge Court, with the entrance directly across from the 691 on/off ramp.

Eastpointe is part of the special development district for more than 100 acres near 691. A master plan for the area was adopted in 2019 to allow the mix of residential, retail and commercial projects. The vacant land had been the site of numerous failed development attempts.

The Reserve at Stone Bridge Crossing, another 140-unit development, is also under construction in the district.

Also planned for the area are restaurants, a retail plaza, hotel and senior housing units, projects that have not yet begun, town officials said. 

Eastpointe and other projects in that area need special permit approval since they are part of the development district.

The property is owned by applicants Miller, Napolitano, Wolff, LLC and Tri-Star Development LLC.


Nonresidential Construction Employment Increases by 13,000 in September

The construction industry added 19,000 jobs on net in September, according to an Associated Builders and Contractors analysis of data released by the U.S. Bureau of Labor Statistics.

On a year-over-year basis, industry employment has risen by 292,000 jobs, or 3.9 percent.

Nonresidential construction employment increased by 13,100 positions on net, with growth in two of the three subcategories. Nonresidential specialty trade added 11,200 net new jobs, while nonresidential building added an additional 2,400. The number of heavy and civil engineering jobs decreased by 500 positions.

The construction unemployment rate decreased to 3.4 percent in September. Unemployment across all industries fell from 3.7 percent in August to 3.5 percent in September.

"Today's employment report was terrific, which in this upside-down, inside-out economic environment means that it was truly terrible," said ABC Chief Economist Anirban Basu. "Stock, bond and other investors are hunting for signs of slowing economic activity, particularly with respect to the labor market. Those signs did not emerge today. Despite elevated compensation costs, employers continue to hire aggressively. Not only does that help support additional inflationary pressure, but it also sends a signal to Federal Reserve policymakers that further aggressive rate tightening is necessary. If rates rise too dramatically, and they have already expanded substantially, the recovery in nonresidential activity would likely buckle.

"Despite rising borrowing costs and elevated risk of recession, most contractors remain upbeat regarding near-term prospects, according to ABC's Construction Confidence Index," said Basu. "Backlog remains stable, and many contractors expect rising sales, employment and profit margins over the next six months. Many contractors also continue to report operating at capacity. Their primary issue is not insufficient demand for construction services, but rather a lack of access to skilled craft professionals."


Why September’s hot jobs report is ‘terrible’ for construction

Construction added a total of 19,000 jobs in September, with the bulk of those gains coming on the nonresidential side, signaling that the Federal Reserve’s aggressive interest rate hikes have yet to quell demand for hard-to-find workers in the sector.

Overall construction unemployment dropped to 3.4%, below the national rate of 3.5% for all industries, as nonresidential builders added 13,100 positions for the month and 181,500 for the year, a 4.2% gain from 12 months prior, according to an analysis of Bureau of Labor Statistics data conducted by Associated Builders and Contractors.

But the gains in the overall job market worried Wall Street on Friday, since they indicate the Fed may need to get even more hawkish in its campaign to reign in runaway inflation. “Today’s employment report was terrific, which in this upside-down, inside-out economic environment means that it was truly terrible,” said ABC Chief Economist Anirban Basu on Friday.

The still hot job market is fuel for even more inflation, since workers can bargain for higher wages.

“Not only does that help support additional inflationary pressure, but it also sends a signal to Federal Reserve policymakers that further aggressive rate tightening is necessary,” Basu said. “If rates rise too dramatically, and they have already expanded substantially, the recovery in nonresidential activity would likely buckle.”

Yet, the current outlook from nonresidential contractors is still largely optimistic.

“Despite rising borrowing costs and elevated risk of recession, most contractors remain upbeat,” said Basu. “Backlog remains stable, and many contractors expect rising sales, employment and profit margins over the next six months. Many contractors also continue to report operating at capacity. Their primary issue is not insufficient demand for construction services, but rather a lack of access to skilled craft professionals.

That confidence could start to wane, however, if the impacts of the Fed’s rate tightening become back-end loaded. The true effects of rising rates may only be felt months down the road. That possibility worries some market watchers that the Fed has already tightened too much, and that additional hikes could send the economy spiraling.

An additional report that came out this week indicates that cooling is already underway in the architecture, engineering and construction space. The latest quarterly market forecast from Newton, Massachusetts-based AEC consultant PSMJ Resources indicates proposal activity is already slipping.

With any value above 0 indicating increased proposal activity, PSMJ’s latest proposal activity index for the third quarter came in at 25, marking a steep decline from its 60.2 value in Q1, when the benchmark hit its second highest value ever. Most noticeable was the impact on public markets, which have fared surprisingly well thus far.

“This latest data continues to show cooling from record-setting levels of activity in key private-sector markets such as housing,” said PSMJ Director Gregory Hart in a statement emailed to Construction Dive. “But what is more concerning is some of the cooling that we are also starting to see in public-sector markets.”


Crowley Wraps Salem Harbor Acreage Buy to Create Offshore Wind Port Terminal

Crowley has completed the purchase of 42 acres in Salem, Massachusetts, the latest milestone toward the development of the state’s second major offshore wind port terminal.

The Salem Harbor Wind Terminal is a public-private partnership between Crowley and the City of Salem, with AVANGRID serving as the port’s anchor tenant through its Commonwealth Wind and Park City Wind projects.

The terminal will be a logistics and operations center for turbine pre-assembly, transportation, staging activities and storage of assembly components. Crowley Wind Services, the company’s business unit dedicated to helping develop clean wind energy resources, will operate the terminal.

“By closing on the property, Crowley, the City of Salem, and AVANGRID as the port’s anchor tenant, have moved one step closer to creating a dedicated port terminal to support the U.S. offshore wind industry’s growth,” said Bob Karl, senior vice president and general manager, Crowley Wind Services. “We will continue to focus on delivering a high-performing terminal that the community can take pride in, providing economic opportunity and environmental sustainability.”

The terminal site project will result in the redevelopment of the former Salem Harbor Station, a decommissioned coal-fired energy plant creating more than 800 jobs (FTE job years) in the support of the construction and staging of wind projects and daily operations.

“Crowley’s acquisition of this site in Salem marks an important step forward for Massachusetts’ offshore wind industry and the development of the critical port infrastructure needed to build a clean energy future in the United States,” said AVANGRID CEO Pedro Azagra. “The Commonwealth Wind project is a transformational opportunity that will bring substantial jobs, investment, and clean reliable energy to Massachusetts, and we are pleased to work with Crowley and the City of Salem as this important port project moves forward.”

“Crowley’s acquisition of this property represents a major milestone in our shared efforts to transform Salem Harbor into a world class offshore wind port,” said Salem Mayor Kimberley Driscoll. “I am grateful to both Crowley and Avangrid for their commitment to our partnership and to our community. This critical project will bring hundreds of good paying jobs and millions in direct investment to Salem and is critical to the Commonwealth’s ability to achieve our clean energy targets.”

The Commonwealth Wind project represents the largest offshore wind project in New England and will create 11,000 full time equivalent jobs over the project’s lifetime while generating enough energy to power 750,000 homes annually. Park City Wind, named after the City of Bridgeport, is an offshore wind project that will power 400,000 homes per year for Connecticut.

Construction of the wind terminal is expected to start in summer 2023, with the terminal complete in 2025.