The Dig Daily Dose - Edition 101

Elevate Your Industry Insights

“The life of the individual has meaning only insofar as it aids in making the life of every living thing nobler and more beautiful. Life is sacred, that is to say, it is the supreme value, to which all other values are subordinate.”

― Albert Einstein

In the world of business, we should take a leaf out of Albert Einstein's book and remember that it's not just about making money. We need to ask ourselves, are our teams finding fulfillment and joy in their work, or is it just a means to an end? It's tough for employers to go beyond simply focusing on profit and not worry about how their employees feel about their work. The truth is, when people don't feel valued for more than just their paycheck, their performance tends to be mediocre at best. On the other hand, businesses that understand the importance of expressing gratitude to their employees and acknowledging their role in the company's success are the ones that thrive. Einstein was onto something when he said that life is sacred, and if business owners don't prioritize this value, their employees will know it. These organizations will always face challenges.

Presented by: Wannemacher Jensen Architects, Inc.

DIG INTO THIS ONE

World-renowned Stanford University psychologist Carol Dweck, in decades of research on achievement and success, has discovered a truly groundbreaking idea-the power of our mindset.

IN THE NEWS

Swap hard hats for helmets?

Increasing availability and better protection have made helmets the new standard for major contractors like Clark and DPR.

Construction workers are transitioning from hard hats to helmets for better safety. Major contractors like Gray, Clark, and DPR have already made the switch and are mandating helmet use. Traditional hard hats only protect from objects falling directly on the head, while helmets also provide padding for side impacts. Falls, slips, and trips are the leading cause of construction worker deaths, making helmets crucial for protecting against traumatic brain injuries. The construction industry has the highest number of work-related TBIs in the US. The transition to helmets is gaining ground, and costs are expected to decrease over time. While there may be initial resistance to the change, education, and dialogue can help workers understand the importance of wearing helmets. Helmets have already proven to be effective in preventing serious head injuries. The industry must prioritize safety and continue evaluating and improving PPE.

Construction expert predicts flat material prices for second half of year

Labor shortages, a manufacturing boom, and infrastructure work are keeping the industry from returning to pre-pandemic price levels.

Strong nonresidential construction activity is maintaining price pressures on concrete, steel, and other key materials, according to Chris Delaney, commercial manager at construction consultancy firm Linesight. Steel prices dropped briefly in the second half of 2022 but have since increased again in the first half of 2023. Cement prices have also continued to rise in recent months. The cost of energy transition and the scarcity of construction labor will further drive prices up in the long term, sustaining materials pricing through 2024 and 2025. Delaney discusses pricing trends, materials costs, and the state of nonresidential construction activity. Projections suggest that materials costs will remain flat for the second half of 2023, with steel prices expected to decrease in May and June. However, certain commodities and energy-intensive products may become more expensive. The contraction of the broader construction industry is expected due to residential sector slowdowns, labor shortages, and interest rates. However, the commercial and institutional sectors are projected to grow in 2023, driven by investment in leisure, hospitality, retail, storage, education, and healthcare facilities. Energy costs have been increasing, and cement prices are expected to remain elevated in the next quarter. Overall, there are no major changes expected in the construction materials market in the next few months, barring any significant economic events.

What architects want GCs to know

Design pros from across the country say they value close collaboration with their construction colleagues.

Collaboration is key for successful partnerships between architects and contractors. A study by the American Institute of Architects and the Associated General Contractors of America found that both groups value early and frequent collaboration. Architects and contractors believe that design development is the ideal phase to start working together. Architects emphasize the importance of including contractors for pre-construction advising and cost estimates to get affordable results. Some architects involve contractors even earlier, at the end of schematic design, to ensure they understand design choices. This close collaboration helps architects understand construction and cost. Collaboration also helps save money and make better design choices. Architects expect substitutions, but some contractors make too many without considering the bigger picture. This can compromise the quality and value of a building. Contractors should consider if their proposed alternatives align with project goals. Architects appreciate contractors who explain substitutions with drawings. Substitutions often involve swapping materials, which can impact aesthetics and resilience. Architects need to know early if contractors want to use different materials. Sustainable products and energy-saving systems can also cause conflicts. Architects believe that sustainable choices are necessary as building codes become stricter. Contractors who can navigate net zero building materials and techniques have a competitive edge. Architects understand the importance of cost savings but emphasize the long-term consequences of cutting corners. Value engineering without clear goals can lead to problems during construction or after completion.

Bechtel opens new Arizona office amid semiconductor boom

The location will help the contractor take advantage of a computer chip manufacturing wave in the area.

Reston, Virginia-based contractor Bechtel has opened a new office in Chandler, Arizona, a hub of semiconductor manufacturing. The office will serve Bechtel's manufacturing and technology business, targeting sectors such as semiconductors, synthetic materials, data centers, and electric vehicle products and facilities. Arizona has seen a boom in semiconductor manufacturing, with Intel and Taiwan Semiconductor Manufacturing Co. investing billions in fab complexes. The new office is 8,000 square feet and includes space for employees in engineering, procurement, project controls, and construction management. Bechtel is also active in the semiconductor construction industry, being selected for Phase 1 of Intel's fab complex in Ohio.

4 of the biggest OSHA fines of Q2 2023

From April to June, the agency publicized four construction fines that eclipsed $100K in initial citation costs.

OSHA frequently publicizes cases where inspections result in large fines. The naming of contractors buttresses the agency’s efforts to raise awareness of safety standards and to punish companies that don’t comply.

Often, these citations include small residential builders, usually with a history of repeatedly failing to provide their workers with adequate protection from hazards. Employers tend to negotiate fines down from their initial totals.

Here are some of the top fines highlighted by OSHA in the second quarter of 2023:

R Construction Civil LLC
Fines: $257,822
Status: Contested

A federal safety investigation from OSHA alleges R Construction Civil LLC of Buffalo, Texas, repeatedly failed to follow workplace safety procedures during excavation work, which ultimately contributed to a worker’s death near Manvel, Texas, in October 2022.

According to OSHA, R Construction Civil, a site preparation contractor, allowed two workers to enter an excavation without sloping or a protective system to prevent the 25-foot trench from collapsing. One of the workers became pinned against a mechanical compactor and died when the trench wall caved in. 

As a result, OSHA issued two repeat citations, for the employer not providing means to exit the excavation, failing to keep soil piles from the excavation’s edge, and for using inadequate protection. OSHA also issued one serious citation, alleging R Construction Civil did not inspect the excavation daily. 

Fines totaled $257,822. R Construction Civil is contesting the fines. 

The contractor did not respond to requests for comment by phone or email.

Goldstar Excavation and Sewer
Fines: $206,698
Status: Contested

A Keenesburg, Colorado, utility contractor faces hefty fines for allegedly continuing to fail to provide workers with proper protection in excavations one year after a worker fatality, according to OSHA.

On Aug. 13, 2022, a 17-year-old worker employed by Goldstar Excavation and Sewer perished when a large chunk of asphalt struck them in the head when an unprotected excavation wall caved in. A company foreman also sustained injuries, according to OSHA. Following the collapse, the agency proposed $15,625 in penalties.

In March, a new investigation found a job site in Fort Collins, Colorado, had allegedly exposed workers — including the previously injured foreman — to those same hazardous trenching conditions. As a result, the agency cited the company with two serious, two willful, and two repeat violations totaling $206,698. OSHA also placed Goldstar in its Severe Violator Enforcement Program.

Goldstar is contesting all fines and charges, saying in a statement shared with Construction Dive that it provided the proper training and protection for an employee who disobeyed directions.

“The new hire signed and agreed to all safety terms including the use of shoring,” the statement said. “It was on site and was available. He got in the hole against company policy and was removed from the site immediately and terminated.”

The employer declined to comment further until the matter is settled.

United Custom Homes LLC
Fines: $151,260
Status: Open

An Oswego, Illinois, framing contractor allegedly exposed six carpenters building new townhomes to falls of up to 21 feet without fall protection, according to OSHA

Inspectors from the agency claimed they observed workers employed by United Custom Homes LLC working without proper protection from fall hazards on April 12. In addition to the lack of protective equipment, OSHA alleged the contractor failed to train the workers on the use of protection and forklift operations, while also failing to provide eye protection. 

As a result, OSHA issued one willful, one repeat, and two serious violations with proposed penalties totaling $151,260. The agency said the findings in OSHA’s April inspection mirror other fall protection violations by United Custom Homes on six other job sites in the Chicago area since 2015. The company owes more than $81,000 in unpaid penalties, OSHA claimed.

The company has no public website or publicly available phone number, so it could not be reached for comment by Construction Dive.

Coronado Excavation of Sewer and Water Repairs LLC
Fines: $112,508 ($79,980)
Status: Informal Settlement

A Brighton, Colorado, utility contractor has settled with OSHA to reduce penalties stemming from alleged violations that led to a worker’s death in a trench collapse.

In December 2022, a trench at an Aurora, Colorado, job site collapsed and killed a 23-year-old employee of Coronado Excavation of Sewer and Water Repairs LLC. OSHA investigators alleged the contractor exposed its workers to an unprotected trench and said the trench collapse occurred while workers installed pipes on the residential job.

OSHA claimed Coronado Excavation had not trained workers on trenching hazards, protected them from materials falling into the trench nor provided safe access into and out of the excavation.

As a result, Coronado Excavation faced four serious and two willful violations totaling $112,508. According to OSHA’s database, the latest event in the citation’s lifecycle was an informal settlement altering the penalty owed by Coronado to $79,980.

Coronado Excavation did not respond to requests for comment.

DRIVE PROFIT

5 ways to protect your bottom line with Autodesk Construction Cloud

Construction margins are tight at approximately 6%, and rising costs and labor shortages make it difficult to protect your bottom line. However, construction platforms like Autodesk Construction Cloud can help improve workflows, align teams, and streamline cost management. Here are five ways Autodesk Construction Cloud can help:

1. Centralized data and connected workflows: It centralizes project cost-related activities in the cloud, providing a single source of truth and integrating data across different workflows. This ensures critical context is not lost and allows for easy management of contracts, payment applications, and expenses.

2. Flexible and customizable: The platform is designed with flexibility in mind, allowing construction professionals to configure the system based on their needs. Terminology can be customized, and custom budget structures can be set up for accurate budget management.

3. Performance tracking: Real-time project performance tracking helps identify areas of inefficiency and optimize profitability. Autodesk Construction Cloud syncs data from third-party apps to connect productivity and cost data.

4. Enhanced ERP and accounting integration: The platform offers seamless integrations with leading ERP solutions, eliminating manual processes and duplicate data entry. This improves data visibility and facilitates communication between accounting and operations.

5. Protect your profits: By streamlining processes, improving data visibility, and maximizing profitability, Autodesk Construction Cloud helps mitigate the challenges of rising costs and tight margins in construction.

DIRECTION OF THE BUSINESS

2024 Top Construction Events

It’s time to plan for the year to come!

In 2024, the construction industry’s major conferences, meetings, and other events will fully reclaim their in-person roots and expand their offerings to contractors, AEC professionals, and key stakeholders. Take a look below to see what the road ahead looks like for next year’s biggest industry events.

Please check conference websites regularly, as details are subject to change and some dates have not yet been announced.

Conferences marked with an asterisk are owned by Informa, the parent company of Industry Dive.

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Jan. 10-12

Newport Beach, California

Put on by the Associated General Contractors of America, the Construction Safety and Health Conference is an event for safety professionals and consultants, with events dedicated to networking and demonstrating the most up-to-date health and safety practices and products in the industry. 

Jan. 22-25

Las Vegas

The largest event for masonry and concrete professionals in the world, attended by more than 60,000 people, will be held at the Las Vegas Convention Center. In 2024, the conference will mark its 50th anniversary. 

Jan. 24-26

Las Vegas

This conference for flooring and tile professionals features educational sessions, networking opportunities, and speakers. The event also doubles as a large marketplace for the flooring industry, with over 600 exhibiting brands. 

Feb. 6-8

Las Vegas

The largest roofing and exterior event in North America, the conference boasts hundreds of exhibitors and more than 60 educational sessions for contractors of all experience levels.

Feb. 13-14

New York City

The largest conference on construction and design in the New York City area will feature more than 400 exhibitors and the largest gathering of women in construction in the country at the Javits Center, according to the site.

March 10-12

Philadelphia

This conference caters to construction managers and the owners who work with them, but breakout and networking sessions and seminars are also geared toward other types of AEC leaders.

March 13-15

Kissimmee, Florida

ABC’s convention in Florida will feature competitions and industry insight sessions.

March 18-20

Austin, Texas

The 2024 NIBS conference will focus on the impact of climate change on building enclosures, as well as new techniques in building design and construction, durability, and sustainability.

March 18-21

Las Vegas

Attendees of the Modular Builder Institute’s annual conference and tradeshow will have the opportunity to connect directly with MBI staff and network with modular builders and professionals from around the world.

March 19-22

San Diego

The AGC of America’s annual conference will feature panels and networking opportunities to help contractors stay on top of a changing industry.

March 20-23

Des Moines, Iowa

The joint conference from the American Society of Civil Engineers focuses on research in construction. Head here to get a look at the future of the industry with academic construction research in tandem with Iowa State University.

March 23-27

Lake Buena Vista, Florida

The annual convention will feature discussions about materials relevant to the construction of walls and ceilings. It will provide the opportunity for businesses to connect through networking receptions and panels, along with a plethora of exhibitors.

March 26-28

Portland, Oregon

The conference boasts the largest gathering of cross-laminated timber professionals in the world. The event focuses on construction and manufacturing, as well as design and development. It will also feature building and facility tours in the Portland area.

April 9-11
Hilton New York Midtown, New York City

The first of the Urban Land Institute’s two annual meetings incorporates networking opportunities and education sessions concerning the built environment as a whole, as well as tours of award-winning projects in the city.

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