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NYC Firms and Unions Will Cut Costs To Boost AEC Work

The following deal was announced on May 29th in NYC.  Two months have passed by and there has been no quantifiable increase in announcements of the projects mention herein nor any recently issued Building Permits.  The idea for this deal and subsequent cost cutting agreements are quite an achievement and should begin to payoff for the local economy and AEC professionals.  I will continue to monitor the situation for you.

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Here’s the announcement from New York Construction News:

In an effort to jump start building projects in New York City and put idle union construction workers back on the job, the leaders of more than 40 different building trades and union employer groups announced on May 29 what they termed a “historic compact” to cut wages of both labor and management and end expensive work rules. Proponents claim the citywide project-labor agreement will cut costs by as much as 21% on the first 12 high-rise and other commercial projects that it covers, representing $2 billion of construction and 10,000 jobs. But some are less enthusiastic about the cost savings, some unions are declining to participate and some developers may have to rethink profit margins in a changed city economy.

The agreement was reached between the Building and Construction Trades Council (BCTC) of Greater New York, which represents 100,000 union workers and the Building Trades Employers’ Association (BTEA), which includes 28 contractor groups and 1,700 union firms. The groups have been negotiating since last October, said Louis J. Coletti, BTEA president. “Contractors would have liked more, unions less, but we’re trying to save jobs in New York City,” he says.

Building trades agreed to no strikes or work stoppages on projects included under the pact, as well as standard workdays and other work rule changes and enforcement. Contractors agreed to cut wages and benefits for management employees, reduce profit margins and strive for “improved project management and efficiency,” among other changes.

Several unions, which were not specified, have also agreed to one-year wage freezes and benefit cuts, according to BTEA. The pact is set to generate project cost reductions averaging 16% to 21%, based on a study conducted for BTEA by Hill International Inc., a Marlton, N.J., project and risk management firm. That figure does not include union wage-freeze cost savings, says the group.

“We have two problems in New York: the financial crisis and creeping nonunionism. This will help both,” said John A. Cavanagh, a former building contractor executive and chairman emeritus of the Contractors’ Association of Greater New York, a BTEA member group. He credited BCTC President Gary LaBarbera, a former teamsters’ union official. “Everyone had to do what they didn’t want to do, especially on the union side.”

The pact won praise from New York Mayor Michael R. Bloomberg (R). “Labor and management are not content merely to wait for a national rebound,” he said on May 29.“Their agreement is an important step to get stalled projects going again.”

But Stephen Spinola, president of the Real Estate Board of New York, said, “It doesn’t go far enough.” He also says savings may be only between 3% and 8%, according to published reports. “We will be talking to our partners to bring costs down further,” he said.

But the pact press release coincided with the May 29 announcement by New York City-based Forest City Ratner Cos. that it plans to resume work on Beekman Tower, a planned 76-story mixed use project halted two months ago at the 37th floor. Reportedly set to be capped at 40 floors, the structure now will be built to its full planned height, says the developer, noting the new labor pact and cost reductions in materials and finishes. Kreisler Borg Florman is project contractor. Others among the first 12 projects that could restart include those being built by Bovis Lend Lease, Turner Construction, Tishman Construction, F.J. Sciame Co. and Plaza Construction. But Coletti acknowledged that not all may restart.

Even so, Coletti thinks the labor agreement is “more the end of the beginning,” noting that trades and employers are still discussing pact details and inclusion of new projects. The AFL-CIO’s Building and Construction Trades Dept. is set to review an additional 12 to 15 projects and the local labor-management committee will review up to nine more in the next week, he said.

One footnote, the city approved the master plan for the Coney Island Revitalization & Development Project yesterday.

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Work-on-the-Boards: Business Conditions at Architecture Firms Largely Unchanged in May

Architects see stimulus program projects generally promoting emerging design trends

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by Kermit Baker, PhD, Hon. AIA
AIA Chief Economist

Summary: The path toward recovery in design activity has stalled recently. After a significant moderation in the downturn in design billings in March, the AIA’s Architecture Billings Index (ABI) has failed to show any further hopeful signs in April or May. The ABI score from May was 42.9, barely moving the needle from the 42.8 score in April. Since any score below 50 reflects an overall decline in billings, the May reading indicates that business conditions at architecture firms are still deteriorating, and that there was no significant movement toward recovery during the month.

Full article via AIAarchitect Blog

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6 Ways to Get – And Stay – Motivated

By CC Holland

May 27th, 2009

Find yourself running out of enthusiasm and steam? Are you low on vim and vigor? Here are six ways to get your motivation mojo working again, courtesy of Jason Echols at Black Belt Productivity.

1. Decide exactly what you want to accomplish in a day. Nothing kills motivation faster than an unclear task list (or no task list at all). If possible, plan your day the night before.

2. Stay positive. Is the glass half full, or half empty? Your choice. But know that a good attitude and a proper perspective can help keep you moving.

3. Don’t forget the finish line. Keep your end goals in mind — remember what it is you’re working for, whether it’s a promotion, a project, or taking care of your family.

4. Get plenty of rest. Low energy = low motivation, so don’t skimp on sleep, tempting as it might be to stay up late and get some more things done.

5. Exercise. It’s no secret that a good sweat, especially first thing in the morning, can jump-start both your body and your brain.

6. Eat smart. Yes, it’s sometimes hard to take that lunch break, or even grab breakfast when you’re running late. But a steady diet of vending-machine food, or gorging too much at noontime because you’re starving, can sap your body and slow your motor down.

More information on this reprint from BNET

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Stimulate Your Business

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These organizations can help match your business with stimulus projects.

By Jennifer Wang
Entrepreneur.com

Wed., May 20, 2009

There’s $787 billion in the economic stimulus pot, but it can’t help you if you don’t know how or where to get it. Data on stimulus money is publicly available, but pinpointing what’s relevant to your business is a daunting task: $400 billion-plus is being distributed at the local and state levels, and there are more than 89,000 of these agencies around the country.

That’s where organizations like National Strategies, Inc., Onvia and Business Matchmaking come in.

Full article via MSNBC

Related links via Architectural Record

  • Park Service Releases $750-Million List of Stimulus Projects
  • AIA Nevada Pushes “Pencil-Ready” Stimulus Projects
  • How Architects Can Land a Government Contract
  • Guide Offers Tip for Tapping Into Stimulus Plan
  • The Final Stimulus Bill, Sector by Sector
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    Not business as usual

    NBAU_268The economy has changed radically throughout the world in the last few months. The impact has been strongly felt in the New York City design community. Projects have been put on hold or altogether stopped; new commissions are not readily forthcoming. Firms have begun, in turn, to downsize. Many of our colleagues are losing their jobs. Many young professionals are not being hired. And our bills are not being paid.

    AIA New York kicked off its Not Business as Usual lunchtime initiative on December 17, 2008, in an effort to unite the architecture and design community around these issues. As the location for these lunches, the Center for Architecture serves as a space for problem-solving, discussion, and action planning, as well as for coping with the realities of an economic downturn. The initiative continues in 2009 with two Wednesday sessions every month, each with a different focus.

    Full article via AIA NY

     

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