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Feature Story - November 2004

Southeast Regional Report
Steady stream of work helps, but industrial downturn still hurts

By Angelle Bergeron

A thin, steady stream of construction contracts will keep things in the state's southeast region flowing during the next few months, but don't expect a wave of good fortune any time soon.

Natural gas prices continue to adversely affect Louisiana's chemical industry, forcing facilities to limit construction spending on necessary maintenance and virtually eliminating expansion projects, said Loren Scott, president of Baton Rouge-based Loren C. Scott and Associates Economic Consulting.

The firm published its annual industry report in mid-October.

"I see the industry being pulled in two different ways," Scott said. "On the bad side you have the continuing hunkering down by the chemical industry, which has lost about 4,000 or 5,000 jobs in the last four years."

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The good news is that several liquefied natural gas projects, about $600 million to $800 million each, are slated for Louisiana, Scott added.

Chemical industry construction will undoubtedly remain flat until the end of the year, at which time the market will experience a "slight kick" due to turnaround projects, said Al Bargas, president of Associated Builders and Contractors' Pelican Chapter in Baton Rouge.

"In 2005 we may see a slight improvement," Bargas added. "I don't see the chemical industry getting markedly better because of the cost of natural gas, so it will be focused on environmental and maintenance-type projects."

Although many in the industrial sector have been doing better this year, the relief isn't affording enough confidence to move ahead with expansions, said Connie Fabre, executive director for Greater Baton Rouge Industrial Managers Association.

"Contractors might be seeing more maintenance contracts pick up, possibly some smaller projects they've been holding off on the past couple of years, but I haven't heard of any major projects in the area," she added.

On the good side, the two liquefied natural gas projects "are underway and several more are almost through the permitting phase," Scott said. "LSU's Center on Energy Studies says the projects will bring 14,000 associated construction jobs."

Other projects, including some large hotels in New Orleans and Baton Rouge, are helping the commercial sector gain in employment, "but it will be a little more lackluster than in the past and it isn't hitting all areas of the state the same," Scott said.

Derrell Cohoon, CEO of Louisiana Associated General Contractors in Baton Rouge, said the commercial sector is seeing some improvement and continues to "sustain the state's economy. It isn't as huge as it has been, but it is still very positive."

Everyone in the industry is still waiting on passage of a new highway bill.

"Hopefully, after the election we will see a lot more movement out of the administration and Congress," Cohoon said. "Once we get a federal highway bill, I think we'll see a lot of improvement."

Many Transportation Infrastructure Model for Economic Development projects are actually progressing more rapidly because they are funded solely by the state.

"Last year, DOTD privatized the program and that is really expediting things," Cohoon said. Through 2008, $2.3 billion have been allocated to projects specifically earmarked to be funded by TIMED.

The AGC advocates using taxpayers' dollars to build infrastructure that, in turn, spurs private development, Cohoon said. That philosophy has proven successful in downtown Baton Rouge, where the state invested $400 million in what has been an $800 million growth spurt.

"We need to be doing that sort of thing across the state with highways, airports, rail systems and ports," Cohoon said.

Project Snapshots

I-10, Baton Rouge

In April, James Construction Group LLC of Baton Rouge began widening a mile-long section of Interstate 10 in Baton Rouge between the Bluebonnet and Siegen exits. The $49.1 million DOTD contract includes widening the stretch from two lanes to four, resurfacing existing lanes and adding frontage roads on either side of the interstate.

The project is scheduled for completion in late 2006.

Eventually, a bridge will cross over I-10, connecting the two frontage roads and tying into a future extension of Picardy Avenue on the south side.

"It creates a bypass, allowing motorists to go from west to east without getting on the interstate," said Mika McKee, project manager for James Construction.

The project has an incentive/disincentive clause of $10,000 per day and requires that the contractor maintain two lanes of traffic in both directions at all times.

"The only time we are allowed a lane closure is at night, Sunday through Thursday from 8 p.m. to 6 a.m.," McKee said.

James set up its own concrete plant on site to expedite the batching and paving. It also signed a partnering agreement with OSHA to promote safety.


State office buildings, Baton Rouge

In April, Alexandria-based Ratcliff Construction Co. LLC began construction of the $30.4 million, 275,000-sq.-ft. Bienville Office Building in the Baton Rouge Capitol complex. The state-owned building will house the Department of Health & Hospitals when completed in May 2006.

The nine-story building follows the design of others in the area and features a structural steel frame, two steel shearwalls, precast exterior skin and some insulated metal panels and glass curtain walls.

"We had major problems with structural steel pricing on the job," said Rob Ratcliff, project manager. Although the increases were unprecedented, the state offered no allowances, he said.

Subcontractor Dives Steel of Rosedale, Miss., suffered a significant loss on the 1,800-ton project.

Next door, Baton Rouge-based Milton J. Womack Inc. is constructing the companion $27.7 million Iberville Office Building, scheduled for completion in April 2006. The Iberville building will be made of a structural steel frame with two concrete shearwalls and will house the Department of Social Services.

Laydown area and workspace is a major consideration on both jobs.

"We are surrounded by Third, Fourth and North streets and the State Library on the fourth side," said Stephan Dorsey, project manager on the Iberville job. "The building footprint is large for the site and doesn't leave room for anything other than a crane walking around."

Consequently, Womack is constructing the nine-story building in halves, "going all the way up in structural steel and concrete on one side and using the other half for laydown," Dorsey said. "When we top out on the first half, we'll drop down to the second half."

Dorsey described the west half of the structure as a box, but the eastern half steps in above the third floor.

Womack took the same approach when constructing the Capitol North Building, which was built in thirds, as a joint project with New Orleans-based Broadmoor Corp. LLC. The method allows the contractor to begin precast erection sooner, speeding up the schedule, Dorsey said.


Harvey Canal sector gate complex, New Orleans

New Orleans-based Boh Bros. Construction LLC is busy on a $35.7 million, 950-calendar day contract to erect the Harvey Canal Sector Gate Complex for the New Orleans District of the U.S. Army Corps of Engineers.

Scheduled for completion in late 2006, the contract includes fabrication of a floodgate that will be erected in the canal for hurricane and flood protection. Boh Bros. will raise the levee along an 800-ft. section of the canal that is being dredged and lined with riprap. Then the contractor will place a cofferdam in the center of the canal and begin constructing the foundation and walls that will frame the gate.

"We've done lock repairs for the corps and the state and fabricated gates of this sort, but this will be a massive structure in the bed of the canal in a 30-ft.-deep hole," said Wayne Woolly, project manager for Boh Bros.

"The interesting part of this project is the logistics of getting to the site. We are building a cofferdam so the work will be dry, but there is water all around it."

Boh will be installing the sheet piles for the dam by November.


Tulane University Center, New Orleans

New Orleans-based Broadmoor Corp. LLC won a $23.6 million contract for the renovation and expansion of the Tulane University Center.

In March the contractor began selective demolition of the existing 1950s-era structure that was deemed outdated as the university's multi-use bookstore, restaurant, bank and lounge facility.

"The selective demolition revealed some previously existing concrete that wasn't quite what they had hoped for environmentally, so there will be some remediation work," said Greg Lusignan, senior project manager. The remediation will result in a time extension but, to date, engineers haven't defined the scope of the additional work, Lusignan added.

The project had to schedule around classes.

There were defined periods of time where we are limited in the type of work we can do and certain time frames we can't work at all," Lusignan said.


Thibodaux Regional Medical Center expansion

In June, Walton Construction LLC's Harahan-based office won a $25.7 million contract for the second phase of a three-part expansion at Thibodaux Regional Medical Center.

Walton's contract for the north expansion and renovation includes construction of a heart and vascular center, medical records and clinical lab, birthing center, patient tower and new central plant, as well as the renovation of the existing plant.

The contractor had to relocate existing underground utilities before piles could be driven for the new central plant.

"That took about two months and we had to keep the hospital running," said Earl Childs, project manager. "We also have to relocate a medical gas park and the main power, both of which are located in the center of what will be the bed tower."

Walton was forced to spill over onto a 300-ft. easement of property on the adjacent Nicholls State University Campus because of limited laydown space.


West Jefferson Medical Center support services facility, Marrero

Walton Construction is also tackling the $17.6 million construction of a new West Jefferson Medical Center Support Services Facility in Marrero.

The project, which broke ground in July, is scheduled for completion in January 2006. The 105,000-sq.-ft. building will include commercial warehouse space and office space on the first floor and a new mechanical plant on the second floor.

"The most challenging aspect of the project will be bringing the plant online without interrupting services to the hospital," said Jeff Mobley, project manager. "Once that is completed, the existing plant is scheduled to be demolished."


Old Hammond Highway widening, Baton Rouge

By February 2006, Barber Bros. Contracting of Baton Rouge will have widened two outdated asphalt lanes of Old Hammond Highway in Baton Rouge to five lanes of concrete from U.S. 61 to Boulevard De Province.

DOTD awarded the $18 million contract at the end of 2003.

About 30,000 cu. yds. of concrete will be needed for the 2-mi. stretch of 11-in. surface, said Marc Cain, project superintendent.

Although Barber Bros. immediately purchased all of the castings for the catch basins, in an effort to stave off rising steel prices, there is not way to make plans this early for scheduling concrete pours, Cain said.

"Last month, I couldn't get cement for two weeks," Cain added. "There's just no way to tell."


Southern University student housing, Baton Rouge

Summit Contractors Inc., a Jacksonville, Fla.-based company, recently completed a $13.3 million student housing development just off the campus of Southern University in Baton Rouge.

Fourteen apartment buildings, including 276 units with 564 bedrooms, comprise the Palisades at Jaguar City.

"It's more apartments, multi-family housing units, than dormitory style, with bedrooms and shared common areas," said Michael Moore, vice president and senior project manager.

Summit began work in October 2003 and rushed to complete the housing by August.

Useful Sources:

For the latest updates on the TIMED program, go to: http://www.timedla.com/

For updates on the I-10 project in Baton Rouge, go to: http://www.dotd.state.la.us/construction/baton.html

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