Newspaper Article

Construction holds up against rates

David Uren, Economics correspondent | May 29, 2008

THE construction industry is still booming as a result of infrastructure projects nationally.

Although home building has been hit by the rise in interest rates, the strength of the construction industry overall may force the Reserve Bank to upgrade its growth forecasts.

Private engineering work, dominated by the resources sector, leapt by 6.6 per cent in the March quarter, putting an end to concerns over the previous six months that the resources boom may be levelling off.

Public infrastructure rose by a healthy 2.2 per cent in the quarter, allowing for inflation.

Matthew Johnson, senior economist with finance broker ICAP, said the overhang of engineering projects waiting for a start was about three times the total built in 2007.

"If even half these projects are started, the pull on resources will be equivalent to about 2 per cent of GDP," he said.

This impetus to growth alone could be enough to push the Reserve Bank to raise rates again, he said.

The latest estimates put the amount of unfinished projects at $66 billion.

With mining profits set to double this year, non-residential construction would continue to support GDP growth for some time, ABN AMRO senior economist Felicity Emmett said.

The residential building sector had a weak quarter, with only 0.3 per cent growth, but it too has a growing pipeline of work. Projects yet to be completed or started amount to $10.6 billion.

CommSec chief economist Craig James said the order books for both residential and commercial building were 24 per cent ahead of their level a year ago.

"The gloom and doom reports on the housing sector are overplaying the situation," Mr James said. "More homes and apartments need to be built, given our rising population, and it appears that we are slowly rising to the challenge."

The construction industry's performance is the first of a series of reports that contribute to the GDP for the first three months of the year, which will be released next Wednesday.

A leading index compiled by Westpac, which attempts to forecast what will happen to GDP over the next three to nine months, suggests growth will ease from a long-term trend of 4.4 per cent to 3.3 per cent.

This is half the level reached in November last year, when consumer demand was surging, and is the lowest in five years.

The index is compiled using figures for money supply, US industrial production, housing approvals and share prices.

(The Australian)

Newspaper Article

Crane collapse kills two

• May 31, 2008

A large crane has collapsed in New York, killing two people and damaging an apartment building on Manhattan's Upper East Side just a day after city officials investigated the crane's operations.

The crane operator and another construction worker died in the collapse shortly after 8am (2200 AEST), a third worker was seriously injured and a pedestrian received minor injuries, New York mayor Michael Bloomberg and police said.

Bloomberg said the top section of the crane broke off and smashed into an apartment building called The Electra, which is more than 20 floors high, on 91st Street and First Avenue.

"We don't know why it snapped off and we will certainly do an investigation," he said.

The crane was being used to build a 32-storey apartment building across the street. Bloomberg said seven buildings had been evacuated while the stability of the crane section still standing was checked.

Television footage showed part of the crane in a crumpled mess in the street and a corner apartment at the top of The Electra that had been demolished. Balconies had also been ripped from apartments on The Electra as the crane fell.

New York City's Department of Buildings visited the site yesterday after receiving a complaint about the crane hoisting over the street, which is a building code violation, said acting Buildings Commissioner Robert LiMandri.

"Yesterday's investigation was about an inspection about hoisting over the street, not about the crane and the way it was installed," LiMandri said.

The crane, owned by New York Crane Corp, was being used by DeMatteis Organizations to build the Azure apartment building, LiMandri said. The company is also building the US mission to the UN across the road from the UN headquarters.

In March, a giant crane fell and crushed a residential building in midtown Manhattan, killing seven people and injuring more than 10 others. In October, a crane dropped a container of debris from the 53rd floor of a skyscraper near Times Square, injuring several people.

The accidents could further dampen the multibillion-dollar Manhattan real estate industry, which already is suffering a downturn from the credit crisis.

"We're certainly on the downside of a cycle, and this is certainly going to have a negative impact," said attorney Jeffrey Reich, a partner at Wolf Haldenstein, which represents New York developers.

New building regulations added as a result of the latest crane accident could increase the time it takes to build, he said. Following the March accident all tower cranes were inspected and the buildings department said an inspector had to be on-site whenever a tower crane was raised or lowered.

Bloomberg told local radio that public safety was top priority and that the city would not "tolerate any rate of accidents higher than it has to be."

"This is just unacceptable," he said. "The public walking by shouldn't be at risk."

(The Age)

Construction Site Visit

Tradelink Plumbing Construction Site
114 Old Geelong Rd, Hoppers Crossing
Victoria, 3029

1) Exterior of Tradelink Plumbing showing some indication of an interesting facade
2) Interior shot of the building
3) Detail of a beam to concrete pre-fabricated concrete panel connection

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2)


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Construction Site Visit

IGA Liquor Store - Revisited
113-115 Hogans Rd, Hoppers Crossing
VIC, 3029

1) The building taking shape (exterior)


2) Detail of I-beam connecting to steel column, supported by welded knee brace. C-purlins running above beam with temporary bracing attatched.

Newspaper Article

Federation Square installs water tanks

Peter Ker

May 14, 2008

The tanks just keep on rolling in around Melbourne.

A bulk order of 63 rainwater tanks has been installed at Federation Square, improving the environmental credentials of Melbourne's major meeting place.

Original plans for tanks to be included at the Square were abandoned in 2002 to save $350,000 in construction costs. The decision was typical of attitudes at the time, with the Southern Cross Station redevelopment across town also overlooking water storage.

Years of severe drought have changed attitudes.

Federation Square's 63 new tanks - which complement the nine installed last year - are in a service trench underneath the Alfred Deakin building, near Flinders Street.

Federation Square chief executive Kate Brennan said the tanks had the capacity to hold 100,000 litres.

"We're hoping that it rains soon and they fill up," she said.

The water collected will flush toilets and Ms Brennan said she hoped the tanks would help reduce water use by more than 12 million litres each year.

Progress has been slower at Southern Cross Station, where planning for tanks is still under way.

Two tanks holding a total of 250,000 litres of rainwater have been planned, with additional run-off to be stored in the Bourke Street main drain.

Station Authority chief executive Jackie Barry said that despite a tender being offered 11 months ago, the $1.2 million water harvesting works were still months away.

Melbourne's new convention centre will also harvest rainwater from the roof into a blackwater (sewage) recycling unit.

Melbourne's water authorities are keen to encourage increased water harvesting into tanks, but insist it is not a viable way to solve Melbourne's overall water supply difficulties.

(The Age)

Completed Building Visit

Bunnings Warehouse

Old Geelong Rd, Hoppers Crossing

VIC 3029

pic 1: Outter view of the complex. Its exterior shows the overall shape of the portal frame.

pic 2: This portal frame is repeated throughout the structure's interior.

pic 3: close up of beam and column connection. They have been bolted then welded together. Column is load bearing.

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Newspaper Article

Rising costs to put holes in 2030 plan

Eli Greenblat

May 12, 2008

STEEP labour costs and a run-up in key commodity prices could slow construction of high-density residential dwellings.

This would place further pressure on the Victorian Government's ambitious 2030 plan, which includes the creation of dozens of activity centres across Melbourne.

Property developers are being squeezed out by a range of costs, levies and taxes and an unwillingness by consumers to pay higher prices for apartments in suburbs zoned for high-density development.

Construction and property consultancy Rider Levett Bucknall has warned that rising costs will impede the aims of Melbourne 2030 and recently announced changes to the planning laws to stimulate activity.

It follows similar warnings from the Master Builders Association of Victoria, which said planning reforms were vital to address the issue of housing pressures and affordability — especially within the targeted activity zones.

Last week the State Government announced it would take some planning powers away from local councils after an independent audit of the Melbourne 2030 planning strategy was critical of its progress.

Melbourne 2030 was launched six years ago to prepare and plan the city's transport, infrastructure and housing needs in the face of a growing population and demand for key services. A crucial plank of the policy was the creation of 26 activity centres around commercial and shopping hubs, where higher-density developments would be encouraged.

But recalcitrant local councils and protests from green groups, NIMBYs (not in my backyard) and other anti-development activists has perverted the plan, forcing the Government to act.

Rider Levett Bucknall said growing pressure on skilled construction workers and materials from the economic booms in Queensland and Western Australia was forcing up the cost to developers to build new homes. The industry was bracing for a forecast increase in iron ore prices of 150%, while other materials used in construction were also rocketing.

This adds to the final price paid for apartments, argued Rider Levett Bucknall director Mark Lochran, making them less unattractive to buyers and thwarting the original policy aims of the Government.

"We are expecting a 15% increase in the steel price next month, and steel is used in the mainframe and the reinforcement of concrete," Mr Lochran said.

In recent years the typical cost of high-density residential developments, such as high-rise towers, had increased from $2000-$2400 a square metre to as high as $3200 a sq m, he said.

Mr Lochran said the new planning rules could help expedite planning and development but that tighter lending conditions by the banks had made it harder for developments to get off the ground.

One effect of rising prices was property developers reducing the size of apartments to maintain low enough sale points to attract buyers.

(The Age Newspaper)