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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."
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
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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.
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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.
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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.
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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.
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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.
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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."
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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."
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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.
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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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