Lamont budget deal pledges up to $80M for XL Center renovations
Connecticut taxpayers could cover up to $80 million in
renovation costs for the XL Center arena in downtown Hartford under the budget
deal struck by Gov. Ned Lamont and legislative leaders this week.
Among the multitude of provisions in the budget compromise
is the outline of a deal that would see Los Angeles-based entertainment and
events company Oak View Group bear at least $20 million in XL Center renovation
costs in return for a long-term agreement to manage the roughly 15,500-seat
sports and entertainment venue.
Under the enabling language in the budget bill, OVG would
cover any annual operating losses, but get to keep the first $4 million in
yearly profits. OVG and the Capital Region Development Authority would split
any additional profit evenly.
The CRDA – a quasi-governmental agency responsible for
economic development initiatives in Hartford and East Hartford – manages the XL
on behalf of the city of Hartford.
OVG has operated the XL on behalf of the CRDA since late
2021, when it acquired venue management and hospitality company Spectra,
the company previously contracted to manage the XL center.
The facility currently runs at a roughly $2.5 million to $4
million deficit yearly, which is covered by the state.
Backers say the XL Center is needed to promote vibrancy in
Hartford, and pays dividends in extra demand at restaurants, hotels and other
nearby businesses. CRDA leaders believe renovations to make the building a more
attractive and economical venue for performers could see it turn a profit.
CRDA's leadership hopes to strike a deal with OVG that would
fund a large-scale renovation. The enabling legislation in the budget compromise
is an important prerequisite that would allow for a deal.
The CRDA has tried for years to secure funding for a
large-scale repair and upgrade of the roughly 50-year-old arena. Lawmakers
balked at a comprehensive $250 million plan in 2018, but had approved $40
million for repairs and upgrades in 2017, and signed off on another $65 million
in 2019.
Portions of that money have been slowly fed out through the
state Bond Commission for work at the XL Center, including an ongoing $15
million package of repairs and upgrades including construction of a
sports-betting lounge on the edge of the building overlooking Ann Uccello
Street.
Providence-based Dimeo Construction is also making
commercial kitchen improvements, adding restrooms and upgrading other building
systems.
In May, the Bond Commission released $7 million for
additional repairs and upgrades at XL, as well as designs for bid documents on
a grander renovation.
The CRDA has spent months negotiating with OVG on a deal
that would see the company bear a portion of renovation costs in return for a
long-term operating agreement that includes a cut of the profits.
CRDA Executive Director Michael Freimuth has previously said
his agency expects to begin soliciting bids for the large-scale renovation this
summer. He expects bid returns in time to determine in “late fall” if costs
fall in line with the projected $107.2 million budget.
“If the budget comes in too high, none of this going
forward,” Freimuth told members of the CRDA venue committee during a May 9
meeting. “If the budget comes in line, we can secure the OVG arrangement.”
Under Lamont’s current budget deal, an agreement may be
entered into with the operator of the XL Center as of July 1, which will be
OVG. That agreement — which, under the budget language, must be entered into no
later than Dec. 31, 2025 — sets out a number of additional terms.
The agreement must outline future upgrades, remedies for
breach of contract and a requirement that the contractor (OVG) furnish an
annual, independent audit report for the CRDA and the secretary of the
governor’s budget office. The secretary’s approval will also be required for
any long-term management agreement between CRDA and OVG.
Before striking a deal with OVG, CRDA will also need an
agreement with the city of Hartford to extend the lease of the XL Center to the
authority. During that lease, any equipment or other personal property added to
the arena will be considered state-owned and not subject to taxation, something
the state will not compensate with a payment in lieu of taxes.
Steelpointe luxury apartment project passes environmental hurdles
BRIDGEPORT — After months of delays caused by environmental
issues, the developers of the luxury apartment project at the Steelpointe
site are now aiming to break ground on the first phase in around 50
days.
"We're going through the bidding process right now with
our general contractor and we have a couple items that we've gone back and
redesigned as well," said Robert "Bobby" Christoph who,
with his father, Robert Sr., has spent years slowly redeveloping the swath of
East Side property between Interstate 95 and the harbor. "We're very
positive on this going forward."
Christoph said, and a spokesperson with the Connecticut
Department of Energy and Environmental Protection confirmed this week, that the
housing has received the necessary state and federal approvals for work to
finally begin.
As reported in early January, the
Christophs had hoped construction would already have been well-underway.
But things got complicated after it was determined the site, the former
location of a steel works and electrical substation, had more ground pollution
problems than initially anticipated.
Specifically, elevated levels of hazardous,
federally-regulated PCBs or polychlorinated biphenyls that required both
the DEEP and the U.S. Environmental Protection Agency to get involved.
PCBs are, according to the DEEP, a "suspected human
carcinogen" that persist for many years in the environment and are
widespread throughout the nation. Connecticut banned their manufacture in 1976,
and the federal government in 1978. It is not unusual for PCBs to be discovered
on old manufacturing sites like Steelpointe that are being re-purposed.
But they make for a more time-consuming process as environmental officials work
with developers to determine how best to either remove and/or "cap"
the toxic material for public safety.
"Being residential, we have to be conscious of
protecting the tenants," Kevin Neary, a supervisor with the DEEP
involved with overseeing Steelpointe, told Hearst Connecticut Media last
winter, adding, “I've had many, many (cleanup) sites in Connecticut. This is
nothing out of the norm."
In an email this week, Paul Copleman, the DEEP's media
relations manager, wrote that the EPA in late February approved the Christophs'
"PCB cleanup and disposal plan" and DEEP followed a month later
authorizing its pieces of the project.
"There are no outstanding reviews or approvals
necessary from our remediation division for the developer to start
cleanup," Copleman concluded.
The overall goal is to build 1,500 luxury apartments in
all. Phase one involves 400 and is estimated to take two years to
complete, though Christoph said tenants might be able to move in in stages as
the units are finished.
The apartments have been discussed and anticipated for
years, particularly when elected officials are touting progress. Mayor Joe
Ganim during
his May 31 state-of-the-city address to the business community told
the audience the Christophs "will soon be breaking ground." In last year's speech,
delivered in early September, Ganim had said construction was to begin
last fall.
An accompanying hotel has also long been part of the
Christophs' plans, and is even more highly anticipated given Bridgeport's only
major hotel, the downtown Holiday Inn, closed
in early 2022 and is
being converted into a 94-unit apartment complex by local developer John
Guedes.
Asked about a hotel timeline, Christoph said he and his team
are "really focused right now on going vertical on the residential."
He said "We have a couple different hotel management companies that we are
interviewing."
Changes
and delays at Steelpointe are nothing new. When in 2015 then-Mayor Bill
Finch was seeking re-election and fending off an ultimately successful attempt
by fellow Democrat Ganim to take his job, it was announced that
the Christophs were bringing a luxury movie theater operator and a Hampton
Inn to the property. Neither moved forward.
At another point a Dave & Buster's restaurant was also
going to be part of the mix.
The first major anchor tenant was Bass Pro Shops, an outdoor
retail chain, which opened in late 2015. Finch, an avid lover of the
environment and the outdoors, along
with other city leaders, heralded Bass Pro's arrival as a major step
forward for the long-dormant Steelpointe.
These days the store is rarely touted by the Ganim
administration. Still, Christoph in the interview for this story said Bass Pro
and the smaller retailers at Steelpointe — a Starbucks coffee shop and a
Chipotle fast food restaurant — are all doing well. He noted that during the
global COVID-19 pandemic that struck Connecticut in early 2020 and for a
time put a halt to large events and gatherings, "The whole world
decided to go camping and fishing" so Bass Pro benefited from that
interest.
The Christophs have also opened a marina and a seafood
restaurant, Boca. And the fourth annual Steelpointe boat show is scheduled there for June
15 through 18.
"It's going to be exciting," Christoph said.
"It's going to be another great year to show off Bridgeport's
waterfront."
ENR's 2023 Top 400 Contractors: Uncertainty Looms Over Market
Emell D. Adolphus Jonathan Keller
Contractor revenue grows despite rising costs as firms say
owner confidence waning in an increasingly cloudy market.
As economic uncertainty swirls around the Capitol Hill debt
limit negotiations, some ENR Top 400 contractors are worried about reaching the
limit of their ability to keep projects profitable. Through years of
pandemic-induced cost volatility and workforce shortages, firms have kept their
revenue and backlogs strong by strategies that include value engineering.
But can they also value engineer economic confidence?
With the Federal Reserve looking to fight inflation and cool
the economy by raising interest rates, economists seem to overwhelmingly agree
that an economic slowdown is on the horizon. But ENR Top 400-listed general
contractors say there is uncertainty looming over how the construction industry
should prepare for when such a slowdown will hit and what business sectors will
be most affected.
Construction industry markets are not reacting to economic
developments all in the same way, explains John Cannito, president and CEO of
PENTA Building Group, ranked No. 128. “Some market segments are flush with
optimism and are looking to capitalize on pent-up consumer demand. Others are
more cautious, with concern about a potential recession,” he says, explaining
that the “two extremes” are driving owners to make decisions based on a false
sense of security in experiences that do not transcend all markets.
In effect, some owners are “delaying projects that should be
going forward in soft markets” and others have “unrealistic budget expectations
in strong markets,” says Cannito. Managing project expectations, “advising
clients responsibly and making sound business plan decisions will be important
to succeeding in 2023,” he says.
Uncertainty Coming to a Head
Managing cost volatility continues to be a top priority for
firms, says Rycon Construction Inc. CEO John Sabatos, as owners weigh whether
to pause projects or cancel them altogether, “which will in turn cause a
slowdown in construction starts,” he explains.
“Normal historical cost increases from year to year have
been manageable with good value engineering processes,” Sabatos says, but
“higher increases will not be able to be recovered by simply making designs
more efficient.” Delays have caused the “necessity to perform work on an
overtime basis which has increased the costs and negatively impacted bottom
lines,” he adds.
Ranked No. 1 for the third consecutive year is Turner Corp.,
with more than $16.25 billion in reported revenue. Bechtel is ranked No. 2. Although
many Top 400 listed firms have consecutively reported increased revenue and
record backlogs since the start of the COVID-19 pandemic, firms sense a change
of pace is inevitable as owners grow weary over volatile project costs. While
workforce shortages, cost inflation and supply chain delays continue, there is
also uncertainty among firms about how resources can further be reconfigured to
provide solutions.
Steven H. Sommer, Lendlease executive general manager and
president of East Coast construction, says the No. 53-ranked company has seen
lead times nearly double for materials. “And we continue to experience
significant shifts in pricing,” he says.
With business interests in development and construction, the
company has a “360-degree view of challenges and the costs and delays they
present,” he says.
In addition to supply chain issues impacting the ability of
projects to move forward, Sommer says uncertainty over economic conditions also
add to project risks. “While we have a robust pipeline of future work in
addition to a number of projects underway in various stages, that economic
uncertainty will certainly be a major factor in new projects moving forward;”
he says.
As firms manage cost volatility, managing fatigue among
employees and subcontractors has become equally important, says McShane Cos. CEO
Molly McShane. “It’s been a long two-to-three years working through labor
shortages and supply chain issues, and people are getting worn out,” she says.
“In the past, so much construction was being put in place that some general
contractors could be selective about which projects they pursued. With deals
[now] being scarcer, the competition among general contractors is stronger.”
At XL Construction, CEO Richard Walker echoes McShane’s
concerns about staying competitive “as certain markets continue to slow down
and additional general contractors move into markets that remain stronger,” he
explains. The firm is back on the list and ranked No. 141 this year after not
filing a survey since 2017.
For Farmington, Conn.-based KBE Building Corp., ranked No.
333, staffing is the company’s top challenge, says executive vice president Jim
Culkin.
“Finding qualified people right now is something the entire
industry is really struggling with,” he says. “We are all still dealing with
the COVID hangover of supply change issues. The question is, how do you
navigate these waters when you’re faced with these kinds of shortages?”
Ramin Cherafat, CEO of McCownGordon Construction,
anticipates that 2023 will be a “very strong year,” tempered by industry
challenges coming to a head throughout the year and further putting a strain on
resources for firms.
“All economic data points are indicating that maintaining
this level of activity may be challenging going forward,” he says.
Opus Design Build LLC President and CEO Tom Becker says that
“businesses can deal with good times and tougher times, but uncertainty is
especially challenging because it’s difficult to be fully committed to your
strategy.” He explains, “I don’t think we are alone in this. I’ve talked to
many leaders in the industry who are in a similar situation,” adding, “It’s
going to be a very interesting year.”
Balancing Bottom Lines
Last year, total Top 400 revenue rose 16.2% from 2021 to
$488.98 billion. Revenue rose only 4% between 2018 and 2021. Part of the recent
growth is attributable to the inclusion of MasTec on this year’s list. The
Coral Gables, Fla.-based firm, which contributed $11.6 billion to the total,
opted to file as a general contractor after its acquisition of IEA, ranked No.
42 on last year’s Top 400. But even with MasTec’s contribution removed, total
revenue would still be up 13.4%, the largest year-over-year increase in revenue
since 2006-07.
After speaking with industry partners, Wharton-Smith
Construction Group President and CEO Tim Smith says he found that work is
moving, but completion schedules are being pushed further out, delaying revenue
as a result. “It is improving some, and our backlogs are bigger than ever,”
says Smith, “but we look forward to being able to build and bill on a regular
schedule again.”
For Top 400 firms, profit margins have mostly stayed strong,
but have not increased in step with gains in gross revenue, with 96.7% of
reporting firms indicating they made a domestic profit in 2022, virtually
identical to last year’s survey results. The median profit margin is down
slightly, to 3.2% from 3.8% last year.
STO Building Group has been focused on efficiently managing
resources so that “our clients don’t feel the negative staffing effects of the
project date sliding out to the right,” says Executive Chairman James Donaghy.
“Profitability and cashflow are the lifeblood of every contractor, and this
market presents challenges which can disrupt the critical path when
resources—for the CM or subcontractors—are not available as planned.”
Similar to Lendlease, Urban Atelier Group President and CEO
Andy D’Amico says the company has been able to increase certainty by bringing
owners and trade partners earlier into the process. It comes down to greater
communication, he says. “In these circumstances, it’s vital to prioritize
effective communication and collaboration with the owner, architect, engineers
and subcontractors to keep parties engaged and aligned with the project goals.”
In many cases, collaboration can save money, says Steve
Ennis, president and CEO of ASRC industrial—especially when “everything is more
expensive,” he stresses.
“Whether it is fuel, parts, or materials, not only do
consumables cost more, but logistically they take longer to get to the job
site,” says Ennis. When prices are fixed, such conditions make it extremely
difficult to know what the right price is when job schedules are moving, he
adds. “We are also seeing a lot of clients who want to expand their payment
terms, says Ennis. "A pay cycle that used to be 60 days going to 90-day or
120-day terms starts to make a huge effect on our bottom line, since we’re
basically getting into financing for that change in receipt.”
New contracts for Top 400 firms total $557.1 billion, up
30.9% from last year. The median new contract total is also up, rising 20.4%.
As with total revenue however, the biggest players have made the biggest gains.
The top 10 firms account for $140.3 billion of that backlog, about a quarter of
the total. Last year the top 10 collectively reported $80.2 billion in new
contracts, or a little under 19% of the total.
Backlogs are strong for some, but higher interest rates are
still spooking private developers, adding to industry instability, says Scott
Blaine, president of Goodfellow Bros. With a potential pause on private work
due to the economy, Blaine wonders when projects funded by federal
infrastructure spending will kick into high gear.
“We are still waiting for the increase in shovel-ready
public works projects promised by the Infrastructure Investment and Jobs Act
and the Inflation Reduction Act,” says Blaine. “This would certainly help
create jobs and stability within the AEC industry.”
In Barton Malow’s view, the availability of projects isn’t
what ultimately affects bottom lines. “The projects are still all out there
regardless of various economic indicators,” says Chuck Binkowski, COO and
executive vice president. “The biggest impact to our bottom line comes back to
labor availability.”
He adds, “There hasn’t been the natural progression in
talent replacement that we see in other industries. The veterans have left or
are leaving and there isn’t enough coming in to replace them.”
Alternative Scheduling Paths
Limited labor resources have encouraged some Top 400 firms
to seek leaner scheduling methods that can accommodate smaller teams,
facilitate collaboration and streamline work plans.
ANDRES Construction Services uses digital pull planning to
complement the critical path method, says vice president of operations Stephen
Miller.
“Our teams will pull plan to validate project milestones and
complete weekly work plans that measure the complete/incomplete work from the
previous work period, confirm the activities for the upcoming work period and
plan the work in the following three-to -six week look-ahead period,” he
explains. Through digital pull-planning tools, the team is then able to
“quickly sort and summarize information for any work day or work area or
trade.” The result is “clarity and consensus in the plan of what must be
achieved each day to realize the project schedule,” says Miller.
With the collaborative-focused last planner method, Hoar
Construction President Turner Burton says the scheduling system improves
accuracy and efficiency.
“Part of our mission as a general contractor is to eliminate
waste of all types—time, money, materials in the construction industry—so using
lean construction processes is essential to accomplishing those goals,” he
says.
Similarly, Primus Builders uses the critical path method as
a starting point for the last planner method, says COO Erik Gunderson. The firm
is ranked No. 340.
“It starts with a high-level master milestone CPM schedule
that identifies major milestones and the general sequence of how the project
will be executed,” explains Gunderson, which includes checklists on items such
as relevant submittals, procurement, delivery, and installation dates.“Each
trade is accountable to the team for their contributions. Meetings with all
trade partners take place weekly to update the schedule according to current
conditions and to keep the team on track,” he says.
At DPR Construction, CEO and leadership team member George
Pfeffer says the critical path method continues to be the team go-to method for
long-term scheduling. “However, as we shift to more medium- and short-term
schedules, we regularly employ other methodologies such as last planner and
Takt, which better support our detailed project planning needs,” he says. “All
scheduling methods are only as good as the data you are putting into them, so
we’ve been putting a lot of focus on data-driven planning,” which can better
leverages quantities, planned/actual production rates and crew sizes to ensure
that sequences are planned for what is achievable in the field, he explains.
For Swinerton, the traditional critical path method schedule
is the “beating heart of every Swinerton project,” says CEO Eric Foster. “We
leverage business intelligence tools to employ alternative scheduling
technologies in order to support various consumers with simplified role-based
data,” he explains. “Business intelligence reporting is essential to ensure all
stakeholders receive targeted and actionable data applicable to their specific
roles and responsibilities.”
Complementing its business intelligence reporting, Poettker
Construction has taken to using drones to track job progress and percentage
completes, says CEO Keith C. Poettker. “Ultimately we tie that information back
to our CPM monthly updates,” he says.
Poettker shares that the firm is also excited to see how
newer technology such as artificial intelligence will impact scheduling and
productivity in the construction industry.
“While I don’t think the AEC industry will ever lose the
human touch of doing business, I do think AI will streamline processes, tasks
and communication efforts in the future,” he says.
Digging Into Data & Technology
Clancy & Theys uses technology to make data-driven
decisions, explains President Baker Glasgow. “We are constantly evaluating our
technology stack inclusive of hardware and software,” he says. “We have come to
the conclusion that there is no software that solves all of our issues; it’s
always going to be a suite of softwares.” However, the company is adamant that
any technology adopted does not work in a vacuum.
“We do not believe in duplication or double entry, so how
one software interacts with another is absolutely paramount to understand when
procuring and implementing software,” says Glasgow. Ranked No. 131, Clancy
& Theys is in the process of procuring HR software that incorporates
learning management and recruiting systems. Glasgow shares that the company is
also going all-in on cloud-based project management software.
At McGough, the company is continuing to explore “better,
more efficient ways to improve scheduling through analytics and monitoring
tools,” says Nate Wood, executive vice president of regional operations. “We’ve
implemented several programs including Deltek Acumen Fuse as well as 4D
scheduling programs that improve planning and coordination on very large,
complicated projects.”
For Boldt, one of the firm’s “biggest challenges” has been
managing their personnel resources related to project staffing. “Knowing which
personnel are available and when, so we can put the right people in the right
place, at the right time,” is critical, says Rob Branyan, vice president of
labor relations. He shares that over the past year, the company has
incorporated a third-party workforce visibility platform into project planning
and operations.
“This lets us track and forecast project needs and
integrates into a lot of our existing platforms, so we can create long-term
workforce strategies,” says Branyan. “Overall, this helps us keep our workforce
engaged and our clients satisfied.”
In 2021, ANDRES Construction Services added a full-time data
analyst to its team to focus on data collection, analysis and continued
improvement across company operations. “Focused innovation and partnering with
select construction tech developers has allowed [the firm] to add significant
value for our clients, trade partners, and employee-owners,” says VP Miller.
At a jobsite level, a digital twin process functions in a
similar way for Kraus-Anderson. The digital twin provides a dynamic, data-rich
virtual replica of the built environment, “providing a visual common ground to
support construction, closeout and asset management,” says COO and Executive
Vice President Rich Jacobson.
Also at a job site level, DPR CEO Pfeffer says technology is
“helping us keep people out of harm’s way like never before.” He adds, “We’re
addressing some of the inherent safety risks on jobsites with a variety of
solutions, from eliminating the use of taglines when lifting steel to robots
that can drill ceiling penetrations without the poor ergonomics that workers in
the trades experience.”
The safer the jobsite, the better for the skilled labor
talent pool, and “the easier it will be to recruit and retain skilled craft
workers,” says Pfeffer.
Ranked No. 21, Brasfield & Gorrie says the firm is also
incorporating more robotic control technology, such as robotic layout and grade
control.
“We hope to see our usage increase in the future. We also
anticipate growth for AI-assisted tools for knowledge management and
intelligent search across multiple platforms,” says chief strategy officer and
chief information officer Chris Kramer.
Last year at Brasfield & Gorrie, a departmental-wide
collaboration implemented digital dig boards on 41 jobsites.
“These allow project teams to see real-time information
about utility lines, making our projects safer and more efficient,” says
Kramer. “Workers can use their mobile devices to quickly identify the utility
lines around them by scanning a QR code on job sites that use digital dig
board.”
Melissa Faulkner, Skanska senior vice president and head of
USA information technology, says the firm spent the last few years building and
investing in their cloud-based infrastructure.
“With improved data quality and accessibility, we’ve
uncovered valuable insights using project data found across all our platforms,”
she says. In addition to minimizing risk and safety hazards, the infrastructure
“creates more efficient ways of working, and drives performance certainty for
teams, subcontractors, and clients.”
Planning for the future, Faulkner says the investment in the
firm’s data infrastructure will allow it to leverage AI advancements, natural
language processing and machine learning to “quickly share knowledge across the
company and predict and anticipate project risks.”
Considering the construction industry’s ongoing labor
shortages, MYCON General Contractors partner and vice president Ryan Stoll says
advances in technology shows potential to increase “efficiency immensely.”
“We are patiently waiting to see how the recent surges in
artificial intelligence will affect our industry,” adds Stoll, who describes
MYCON as a “data-driven construction firm that leans heavily on using
technology and data” to drive business decisions.
“Instead of just tracking budgets, costs and projected
costs, we are tracking and analyzing cost data from multiple perspectives,”
says Stoll. The strategy has helped the firm streamline operations and pinpoint
optimal project types.
Hot Markets
Revenue in all markets that ENR tracks rose between 2021 and
2022 except for the transportation, which was down for the second consecutive
year. The sector with the biggest gains was manufacturing, up 72.32% to $25.3
billion dollars. More firms seem to be entering the market, with 130 firms
listing manufacturing revenue in 2022, up from 115 in 2021. Last year 35 firms
made more than $100 million in the market; this year 45 did.
With the passage of the CHIPS Act, Gilbane Building Co.
President and CEO Tom Laird says the company is seeing great opportunities in
the advanced electronics sector as well as in life sciences and food and
beverage manufacturing—in addition to a renewed vigor for onshore
manufacturing.
“These are priority investment areas for the company.
Fortunately, we are well-positioned for these opportunities,” says Laird,
naming the Intel Ohio Fabs project and Constellation Brands Brewery Expansion projects
among opportunities for the firm.
CFO Michael Williams of No. 42-ranked Black & Veatch
shares that “economic uncertainty” and industry challenges such as inflation
and supply chain constraints are indeed having an impact on the firm's clients
decision-making process. However, “demand for services stemming from the
decarbonization, electrification, water scarcity and energy transition
megatrends facing humanity continue to build solid pipelines and backlog,” he
says.
Williams says the firm remains disciplined in “our
contractual arrangements ensuring we are not taking on risk that cannot
realistically be managed or mitigated in the current environment.”
Speaking on projects connected to the energy transition, a
Bechtel spokesperson says meeting environmental sustainability goals will
require a “more everything” approach from a project perspective.
“We need to continue building more renewables, introduce
more technologies and innovations, but we also need to utilize mature scalable
technologies we have, like LNG, nuclear and hydro,” says Bechtel. “Improving efficiency
and targeting emissions elimination in existing infrastructure all have
near-term positive impacts that are largely self-funding and should not be
ignored.”
No. 104-ranked Blue Ridge Power is constructing a 305-MW
solar project in Texas, with another 1.8 GW of projects in the pipeline from
that state alone, says senior marketing manager Casey Hulme.
“Texas and California continue to lead in the utility-scale
solar installation market,” she says, citing a 2022 American Clean Power Q4
report that found Texas installed 3.9 GW last year—the most in the U.S.
Russell Group President Caitlin Russell says an uptick in
the firm’s multifamily housing construction is being driven by a demand in the
“smile,” or Sun Belt, states of the country. “There also continues to be a
driving need for affordable housing, including government assisted, senior,
student, low-income and workforce,” she says. “The health care and
manufacturing markets are also seeing some growth, with a focus from
just-in-time to the readily available.”
Overall, revenue is up for the strong majority of Top 400
firms. Of the 378 firms who filed both this year and last, 78.0% saw an
increase in revenue in 2022. On last year’s survey, the equivalent number was
only 58.6%. Median firm revenue is also up, rising 15.3% to $567.9 million.
Moreover, international contracting revenue is up 12.8% to $29 billion, its highest total since 2019. However, the majority of the gains are concentrated among larger international players. Of the firms that made more than $100 million in international revenue this year, 73% had more international revenue than last year. For those firms below $100 million, that number was only 39.4%. Median international revenue actually fell 9.4%, to $67.5 million.
GCs Revamp Safety Training
Statistics show that new hires are especially vulnerable to
safety incidents. The 2022 Travelers Injury Impact Report showed that about a
third of the injury claims in the period it analyzed occurred during an
employee’s first year on the job. Data from Birmingham, Ala.-based contractor
Brasfield & Gorrie LLC (No. 21) shows that the first 90 days is
an even more important timeframe for training and supporting new employees,
says Troy Ogden, vice president of safety and learning with the firm.
In order to minimize that vulnerability and keep safety top
of mind for more experienced workers, Brasfield & Gorrie launched SKILLED,
a comprehensive training program combining safety and skill training in 2022.
The program is a combination of in-person training and on-demand video,
available with captions, in both English and Spanish. “Because our target
audience—craft employees—typically doesn’t use computers for their jobs, it was
essential to build a mobile-friendly platform,” says Ogden. The firm also
created a series of hardhat decals so workers can show off the training they’ve
completed.
New hires at Brasfield & Gorrie are provided a blue vest
to be easily identifiable on the job site. “In addition, to ensure that someone
is consistently watching out for new hires, we assign a mentor to each new
employee during that period,” adds Ogden. New hires also have the opportunity
to earn a prize for completing the First 90 Days training on SKILLED.
For Landmark Construction LLC (No. 189), the 2022 goal
was to take a more granular approach to safety training. “Developing a
role-centric HSE training matrix allowed us to concentrate on the essential
basic compliance of OSHA 10 and 30, CPR/First Aid/AED, and an additional 25
role-specific training programs,” says Josh Landrum, safety manager at
Landmark.
In January, KBE Building Corp. (No. 333). rolled out a
10-hour safety program to complement and exceed the standard OSHA 10. “We’ve
looked over the history of subcontractor safety performance on our projects,
identified the core safety issues that we see time and again, and put together
a program focused on those key trouble areas,” says executive vice president
Jim Culkin.
The program includes 14 breakout sessions that cover very
project-specific safety topics. “For example, we cover fall protection in
detail, but we focus on making sure that the trade employees using the fall protection
system have the right equipment and are properly trained in how to use it,”
says Culkin. The program is provided during the first 30 days of employment and
as a required annual refresher course.
Firms Invest in Employees
In addition to tackling industry challenges and changes, Top
400 firms also celebrated myriad levels of company successes.
At Granite Construction, President and CEO Kyle Larkin says
the company is proud to have “de-risked our portfolio away from large
design-build projects.” The firm is now moving toward “collaborative
contracting methods such as construction manager/general contractor (CM/GC) and
progressive design-build (PDB),” says Larkin.
When it comes to labor recruitment and retention, many firms
say they have added enrichment programs and stepped up their safety programs to
greater cultivate and protect its trade partners and in-house teams.
“Internally, our team has taken formal steps to better
support the quality craftsmanship of our employee owners and to foster a strong
and diverse workforce for years to come,” says MW Builders COO Jason Evelyn.
Last summer marked the inaugural class of the firm’s Emerging Leaders Program—a
multiyear continued learning and development program for recent project
engineering grads.
“Being able to provide continued education and the
opportunity to explore multiple career paths within the
organization has proven to be an invaluable tool in
recruiting and retaining world-class talent nationwide,” says Evelyn.
Sundt vice president and corporate director of health,
safety and environment Paul Levin says Sundt’s biggest success in the last year
has been the company-wide rollout “Stop the STCKY,” (which stands for stop the
Sh*T That Can Kill You).
“Over the past decade, the industry’s average recordable
injury rate (RIR) has gone down, but its fatalities have remained steady,” says
Levin, explaining that it is this gap that the company is looking to close in
on by implementing the program on its job sites.
The program focuses on eight areas of high-risk work and the
identification and implementation of adequate controls needed to complete the
work safely, Levin explains. “Data is collected during STCKY Walks (high-energy
control assessments) and analyzed to help us effectively review, manage and implement
improvements, trainings, coaching and best practices to continue our effort to
stop the STCKY,” he says.
McShane adds that implementing programs that reinforce
company culture and values are just as important as addressing industry
challenges.
There is no value engineering needed to simply ask, “What
can I do to help?” explains McShane.
“We’ve been able to respond to the outside pressures by
calling on our culture. We’ve seen a fair amount of challenges over the last
few years, but our people have shown their dedication and commitment to our
team,” she says. “Character is revealed during times like these, and I couldn’t
be more proud.”
Newtown denies 3rd out-of-state developer over objections that ‘we gotta let them build something’
NEWTOWN — For the third time in a year, planners have
shut down a major
development proposed for the open terrain off Interstate 84 at Exit
9 — this time a rezoning request to allow 300 apartments.
“Anything we put there is going to increase traffic —
so what about the owners? We have to let them build something there,” said
Gregory Rich, a member of Newtown’s Planning and Zoning Commission, addressing
not only the neighborhood opposition to the 300 apartments during a public
hearing last week, but also referring to the objection by neighbors to
two other
major development proposals on the same Hawleyville Road stretch that
critics defeated over the past year.
“If you want to keep it undeveloped, then buy it,” said
Rich, speaking to the Newtowners who’ve spoken against the unpopular building
plans. “The owners will be happy, and you will be happy. We gotta let them
build something, folks.”
The chairman of Newtown’s five-member commission seemed to
agree, although that is not the way he voted.
“I’ve seen a lot of things brought up on this property for
the 30 years I’ve been here,” said Dennis Bloom, shortly before he and three
other members of the commission voted down the latest proposal. “I believe that
it is time, some way, somehow, that these people have the right to get
something built there so they don’t have to keep paying taxes.”
Bloom was referring to request by New Jersey developer Sterling Properties to
rezone 70 of the 100 acres in question on Hawleyville Road from light
industrial to residential, to allow a 14-building complex of one- and
two-bedroom apartments with rents ranging from $2,300 to $2,900.
The plan was panned in May by residents who told planners “I
don’t see how you can entertain this all over again,” and “We spent a year with
this between two developers who tried to turn this place upside down.”
The two other developments planned for Hawleyville Road were
both run out of town after residents organized opposition. First,
Newtowners successfully opposed a Manhattan investor who wanted to build
an 8-acre
trucking warehouse on the 100 acres. Next, residents successfully
objected to a New York developer’s plans for 200
apartments on a next door property.
At a June 1 public hearing where Newtown planners voted
4-to-1 to reject the rezoning request for 300 apartments, resident Mark D’Amico
said a residential development of that size would cost the town more than it
would contribute, starting with an estimated 127 school-aged children that
could come with the project.
“It’s not to say that there definitely would be (127
students) but it definitely could be if that apartment complex follows the
statistics that the town of Newtown actually has,” D’Amico said, adding that it
would cost $2.5 million annually to educate those students.
“High density housing doesn’t cover its own burden, so while
this (project) might generate $750,000 (in annual real estate taxes) that
sound(s) like a great idea until you realize the potential cost to the town.”
Joe Wrinn, a commercial broker with Coldwell Banker who said
he has “represented this property exclusively for at least the last 10 years,”
told Newtown planners during a presentation that the rezoning and subsequent
apartment project would be “a boon to the businesses in town, and a boon to the
town in terms of taxes.”
“You spent $4 million bringing the sewer line in (to the
property) — let’s use it,” Wrinn said. “A warehouse — I’m fine with
that too. I think (the apartment project) fits well into the character of the
neighborhood. This fits better than the warehouse.”
D’Amico, a leading neighborhood critic, said the property
was meant for economic development, not residential development.
“Economic development is commercial development that
generates more revenue than it costs,” D’Amico said. “That is what this
property is earmarked for. That's why the taxes were spent to drag in the
sewers. Not for this.”
Commission member Corinne Cox had concerns about
impervious surface and runoff.
“Per Connecticut state standards and regulations, all that
added runoff will be treated and detained,” project engineer Rick
Bohlander said.
“You hope,” Cox said.
“That is not debatable — that is a statewide thing that is
reviewed by the state and approved by the state and there is really no fluff on
that,” Bohlander said.
“I am concerned about any runoff into Pond Brook that goes
through there,” Cox said. “It would kill the trout.”
“Absolutely,” Bohlander responded. “It was high on my
priority list to maintain the hydrology site to the best extent practical.”
Yale NH Health’s plans for Meriden Mall remain behind schedule
Mary Ellen Godin
MERIDEN — Yale New Haven Health’s
goal to build a comprehensive medical center at the site of the
former Macy’s at Meriden Mall remains behind schedule.
“We are still in the planning stages at this juncture and
will update everyone as we move ahead,” Yale New Haven spokesman Mark
Dantonio stated in a email. “No other updates at this time.”
Yale New Haven officials said the 179,258-square-foot former
Macy’s store will be used to provide out-patient care for patients through
partnerships with Smilow Cancer Hospital, the Yale New Haven Heart and
Vascular Center and Yale New Haven Children’s Hospital.
The site will also offer blood draw and radiology services.
Construction workers have been doing interior
demolition and recently filed a plan revision with city building
officials, said city Economic Development Director Joseph Feest.
After purchasing the former anchor store for $2.8 million in
October, Yale New Haven Health initially said it planned to start
construction in early 2022, and open some services in the next 18 to 24
months.The project was expected to be completed by the end of 2023 or
early 2024.
But Yale representatives recently told Hearst
Media, "Like many health systems across the country, Yale New Haven
Health is facing headwinds stemming from the COVID-19 pandemic and the current
economic climate. We are being very thoughtful in our planning and
will update everyone as we move forward.”
The move puts Yale in the backyard of Hartford HealthCare
which owns MidState Medical Center also on Lewis Avenue. The two
organizations are among the largest health networks in the state and have been
creeping into each other’s service areas.
“They’re committed to the project,” Feest said. “They
paid for the interior demo and the remediation has been done already. They are
waiting for the next stage of construction on the interior. Last month,
they sent in some revisions. Based on that, you know they are still
working on it.”
Meriden Mall is among other struggling malls in the
state as management attempts to move toward non-retail uses to fill
vacant space. After the sale of the former Macy’s store to Yale in 2021, the
mall had seen interest in a dinner theater next to a former Best Buy that
is also on the southern wing of the retail center. The future of the dinner
theater is unknown, but activity has stalled.
Neither mall or dinner theater representatives could be
reached for comment.
Th mall welcomed a new and unique addition in
March called Petrillo’s Fairs and Festivals, a company that produces free,
fun events for the entire family to enjoy. The business, which hosts vendors
and other activities, is open on the weekends.
“This is a great concept to draw more people into the
mall,” President of the Midstate Chamber of Commerce Rosanne Ford said in
March. “So you know they’re there for the event, there’s great exposure for the
vendors, but also a good additional way to draw traffic to some of the stores
in the mall like Boscov’s.”
Another attraction had been the Meriden Public Library,
which operated a temporary location at the mall during renovations to the main
library building on Miller Street. The temporary mall location closed last week
ahead of a July 14 reopening of the Miller Street building.
63-hour Closures Scheduled For East Haddam Swing Bridge, Starting June 11
Cate Hewitt
EAST HADDAM — A new weekly schedule of 63-hour closures of
Route 82 over the Connecticut River at the East Haddam Swing Bridge will begin
Sunday evening, June 11.
Under the new schedule, the bridge will be closed Sundays
starting at 8 p.m. and will reopen on Wednesdays no later than 11 a.m.,
according to the Connecticut Department of Transportation.
The new 63-hour closure schedule will occur every week
through late fall, excluding state-observed holiday weekends. All traffic,
including pedestrians, cyclists and vehicles will be prohibited from the bridge
during the closures.
American Bridge Company built the iconic bridge in 1913 and
was awarded a $55 million state contract in 2022 to renovate and repair and
replace the structural and electrical components. In addition, a $23 million
cantilevered pedestrian bridge will also be constructed as part of the
project.
During the night closures, traffic will be detoured to the
I-95 Baldwin Bridge in Old Saybrook and Old Lyme, and to the Arrigoni Bridge in
Middletown and Portland.
Inclement weather or unforeseen circumstances could cause
cancellations or changes in the closure schedule.
Check for weekly updates here. To opt-in for text
alerts, text the word SWINGBRIDGE to 888777. Questions related to construction
can be emailed to dotproject40-141@ct.gov.
Apartment building proposed for 19th century jail site in Norwich
Claire Bessette
Norwich ― For the first time since the mid-19th century,
something new could be built on a vacant, overgrown Cedar Street property where
the 19th century New London County jail once stood overlooking Norwich Harbor.
The former jail was the centerpiece of the clifftop
neighborhood that became home to Norwich African American families and was known
as Jail Hill. It is now a National Historic District.
The 1.88-acre property at 16 Cedar St., with a commanding
view of Norwich Harbor, is the site of the former New London County Jail, a
factory associated with the jail and the home site of an early 19th century
prominent Norwich African American family.
A Hartford-based housing developer purchased the property in
January for $80,500 and has submitted plans to the city for a proposed
four-story, 26-unit apartment building, with open recreational space in the
front area near the School Street intersection.
The Commission on the City Plan will hold a public hearing
on the permit application by 16 Cedar Street Development LLC at 7 p.m. June 20
at 23 Union St. The plan calls for 18 two-bedroom apartments and eight
one-bedroom units in a single building facing Norwich Harbor.
The plan does not describe whether the apartments would be
designated as affordable units or market rate housing.
The property has changed hands several times in recent years
and once was proposed for a housing subdivision. But not since the “new” county
jail was constructed there in 1830 to replace one that had burned down and
prominent African American resident, Rev. William Spelman, built his house in
the immediate vicinity of the jail, has anything new been constructed there.
The abandoned jail was torn down in the 1950s, its
foundation and stone walls now concealed by thick brush and trees that have
taken over the property.
City Historian Dale Plummer said because of the
neighborhood’s rich history as an early African American neighborhood, home to
leading Black citizens with strong ties to the abolitionist movement, the jail
site should be studied before construction begins. Plummer led the historical
and architectural survey in 1984 that led to Jail Hill being named a National
Historic District.
State Archaeologist Sarah Sportman recommended the city
planning office request a professional archaeological reconnaissance survey of
the property be completed prior to development, “given the notable history of
the Jail Hill District, as well as the potential for archaeological resources
related to the former jail and prominent members of Jail Hill’s 19th century
African American community.”
Norwich Director of Planning Deanna Rhodes included the
recommendation for an archaeological survey in her staff report to the planning
commission, asking that the survey results be submitted to the city and to the
Office of State Archaeology.
Elizabeth Torres, who signed the project application for
owner 16 Cedar Street Development LLC, could not be reached to comment last week
on the project plans.
According to Plummer, Jail Hill emerged as an attractive
neighborhood for local African American families because the jail, located in
the center of the cliff-top area, depressed surrounding property values, making
it affordable to entrepreneurial Black families. The area was called Kinney
Hill prior to the jail. Plummer added that property owners with sympathies
toward the growing abolitionist movement were not averse to selling land or
houses to African American buyers.
The neighborhood became home to James Lindsay Smith, who
escaped from slavery, settled in Norwich running a shoe shop and became a
minister. The Harris family also resided on Jail Hill. Daughters Sarah and Mary
Harris, along with neighbors Julia Williams and Eliza Glasko were students at
Prudence Crandall’s school for Black girls in Canterbury, state Archaeologist
Sportman wrote in her letter recommending the archaeological study.
Sarah Harris became an advocate of abolition of slavery, and
Mary Harris traveled to New Orleans to educate formerly enslaved people,
Plummer said.
The Rev. William Spelman was a delegate to the Connecticut
Convention of Colored Men in 1849. His son, James Spelman, was a noted
journalist and teacher, Sportman wrote. Plummer said not a lot is known about
Rev. Spelman, and his connection to the former jail property “is quite
significant.”
“These folks were active in the Civil War and post-Civil War
era, and they came from Norwich, Connecticut,” Plummer said. “We really don’t
know a lot about them.”
Plummer’s National Register nomination report in 1984
recommended archaeological studies of the jail property and other Jail Hill
sites. He said not a lot was done on that recommendation. He said he was
pleased that good research has been done on the Harris family based on the
historical survey, but much more can be uncovered.
“We know the brush strokes ― the Harrises, the Smiths ― but
we don’t know a lot about what was going on there,” Plummer said. “The
Underground Railroad. Jail Hill was very much involved in it. How do you prove
that?”