Building Industry Magazine - January 2012 - (Page 65)

Construction Preiew Highlights BY JUDITH SHINSATO Const Previeruction w 2012 Building Industry Magazine ’s annual forecas t of the com ing year Construction Preview 2012, Building Industry magazine’s annual forecast, includes not only lists of projects expected to go out to bid this year by numerous federal, state and county agencies but also includes commentary and predictions from many state and industry leaders. Here’s a sneak peak at what you will find when you receive the publication later this month. Uncertain Outlook In their most recent 2012 reports, both Dr. Leroy Laney, economic advisor for First Hawaiian Bank, and UHERO (University of Hawaii Economic Research Organization) downgraded their forecasts. “Hawaii’s recovery process is tenuous and far from complete,” states UHERO. “Our forecast is for gains as we move into 2012, but not at a pace that will lead to rapid improvement in economic conditions.” Laney asserts, “Hawaii’s outlook for 2012 is likely to be somewhat more downbeat than was envisioned just a few months ago. The events affecting this include European debt problems and our own debt debate in Washington, a national story with implications here in Hawaii and everywhere else.” These statements are underscored by Eugene Tian, acting economic research administrator for the research and economic analysis division of the state Department of Business, Economic Development & Tourism. He writes, “Optimism is not a concept easily applied to the current economic forecast for the construction industry. However, if the state and county governments will increase their capital improvement spending during the year, there is hope for a ‘bridging’ action that will hold up the sector in 2012.” There is even only dubious optimism from construction industry leaders themselves: For example, Lyle Moody, 2011 president of the General Contractors Association of Hawaii, writes, “Everyone was expecting a turnaround in construction in 2011; well, needless to say, it did not happen, and 2012 looks the same as 2011 – just the basic construction projects with no life-saving jobs that will bring back the good old times. Although 2011 statistics may not reflect what the construction industry had hoped for, we can only move forward and up from here.” Even the Building Industry Association is expecting very little change in 2012. Cause for Hope Take heart, there are some silver linings amongst the clouds. They include continued support from the federal sector: “In these lean fiscal times it’s great to be able to offer good news on our construction/contracting, energy and small business efforts in Hawaii for …2012,” says Capt. John Coronado, commanding office of Naval Facilities Engineering Command (NAVFAC) Hawaii. He goes on to state that 2011 was a record workload year, anticipating a similar volume of work for 2012. Through Lend Lease, $206 million in contracts is scheduled to be awarded at the Island Palm Communities project for the Army in 2012, and changes to its development scope have resulted in potentially $1.1 billion in work through 2020. Also, Kamakana, Forest City’s master-planned community in Kona, being developed in conjunction with the Hawaii Housing and Finance Development Corp., is on target to begin construction in the second quarter of 2012, with more than 2,300 homes expected to be built over a 20-year period. Some highlights from the counties include, three major projects budgeted for the City & County of Honolulu: $95 million for the expansion of the Sand Island wastewater treatment plant; $77 million for the rehabilitation of various streets; and $36.5 million for Ala Moana Wastewater Pump Station Building industry | JANUARY 2012 | 65 force mains Nos. 3 & 4. Maui County also has some big projects scheduled for the coming year, including noteworthy private work. This includes Hyatt Regency’s $150 million timeshare project, the $90 million renovation for the Andaz hotel, a $250 million expansion of the Grand Wailea and the $140 million Auwahi Wind Farm in Ulupalakua. The Color of Money Sustainability and environmentally friendly building will remain a driving force behind many construction projects in 2012. Some highlights, besides the aforementioned wind farm are: • Gov. Neil Abercrombie mentions a power purchase agreement (PPA) between the Department of Education and Hawaii Pacific Solar, LLC to install photovoltaic systems at 15 Kauai schools, starting this month. • The City & County of Honolulu has budgeted $4.7 million for energy conservation improvements. • Maui County expects to put out to bid this year its most aggressive renewable energy project, which will install 1,000 solar panels on Maui and Lanai county facilities. • A solar plant is being developed on a 12-acre site in partnership with James Campbell Co., Forest City, Hoku Solar and Hawaiian Electric Co. • Lend Lease entered into a PPA with SolarCity to install PV systems atop existing homes at Hickam Communities. All in all, though there’s only some consensus as to the growth that can be expected in 2012, all agree that the worst is over, with only one way left to move. BI

Table of Contents for the Digital Edition of Building Industry Magazine - January 2012

Building Industry cover
Table of contents
Datebook
BIA Installs New 2012 Leadership
Partnering for Smart Grid Project
Scholarship Opportunity
ABC Honors Best Merit Shop Projects
Contracts Awarded
Military
Best Practices
CCPI Resource Directory
Spotlight on Success: Submarine Drive-In Magnetic Silencing Facility, Beckoning Point
Hawaii County Dedicates Transitional Housing
IBEW Renovation Earns LEED Gold
Hyatt Place Opens in Waikiki
Forecast: Fairly Sunny with a Few Scattered Clouds
Concept to Completion: Hyatt Regency Waikiki Beach Renovations
Construction Preview Highlights
Good Neighbors
Low Bids
News Makers
New Products

Building Industry Magazine - January 2012