Infrastructure Construction in a Trump Administration

Rosy predictions of doubled federal support for infrastructure construction across our nation under President Elect Donald Trump are fading quickly, according to a recent post on Trump’s transition website. Despite predictions of Trump supporters Wilbur Ross and Peter Navarro that his public private partnership based infrastructure funding and tax plan “could help finance up to a trillion dollars’ worth of projects over a ten year period,” the most recent transportation and infrastructure post on the official Trump administration transition website, https://www.greatagain.gov/policy/transportation-infrastructure.html proposes federal investment of only $550 billion over the ten year period.

Rebar Prices Headed Up After USITC Ruling

The prices of reinforcing steel for highway and other concrete construction projects will likely head up in the new year, following the U. S. International Trade Commission’s November 3 ruling that imports from Japan, Taiwan and Turkey are being dumped in the U. S. by these foreign steel producers. According to the ruling, the $854.1 million in foreign rebar imports represent almost 20% of U. S. reinforcing steel consumption.

Expect countervailing import duties on foreign rebar to be imposed early next year, leading to increasing prices on both foreign and domestic reinforcing steel products in February or March 2017.

PNC Bank Lends $51.3 Million for South Loop Apartment Tower

PNC Bank is providing the $51.3 million construction loan for construction of a $70 million, 26 story, 320 unit apartment building at 1136 Douth Wabash in the South Loop neighborhood. PNC says it is comfortable making the loan after the developer paid off a $70 million construction loan earlier this year on the 351 unit Arkadia Tower apartment complex in Greektown. The Wabash project is being built by Lendlease.

Federal Court Injunction Blocks Enforcement of “Fair Pay and Safe Workplace” Regulation

Texas federal judge Marcia Crone has issued a preliminary injunction blocking enforcement of the Obama administration’s labor regulation which would have required contractors, and eventually subcontractors, to publicly disclose alleged violations of 14 federal labor, safety, health and employment rules, and related state laws, before seeking federal contracts worth more than $500,000.00 after April 25, 2017. According to Judge Crone’s opinion “The public disclosure and disqualification requirements being imposed on federal contractors and subcontractors are nowhere found in or authorized by the statute on which [the rule and Labor Department guidance] relies.”

The lawsuit challenging the rule was brought by the Associated Builders and Contractors and the National Association of Security Companies, while the rule was supported by the Laborers International Union of North America.

Merchandise Mart Lands Caterpillar “Dirt & Digital” Lab Facility

Peoria based Caterpillar, Inc. has announced a 5,000 square foot, 45 employee facility in the Merchandise Mart to expand its Chicago area presence working with local universities and technology companies to develop digital applications for use in Caterpillar construction equipment, such as real time updates on equipment operator fatigue through equipment cap facial recognition systems, according to Caterpillar Director of Guest and Community Relations Henry Vicary.

“Our ‘Dirt & Digital’ labs are the perfect way for us t showcase that Caterpillar shares Chicago Idea’s overall vision, keenly focused on technology, innovation and a future that will transform the world,” Vicary said.

Chicago Public Schools Announce $1 Billion in Borrowing, Despite Junk Bond Status

Despite Moody’s Investor Service September downgrading of CPS bond issues to junk status, the Chicago Board of Education has announced it intends to market an additional $1 Billion in bonds to finance new school construction, renovation projects, and equipment purchases. The Chicago City council has approved setting aside a pool of property tax revenues to finance repayment of these bonds.

Major Fine for Omega Demolition in Worker Death

OSHA has issued a fine of $152,433.00 against Elgin based Omega Demolition for safety violations leading to the death of Vincente Santoyo, an Omega employee, when a beam collapsed on him while he was cutting bracing during demolition of a bridge over the Jane Addams Tollway to complete widening of the roadway. Omega has had nine other OSHA safety citations since 2006, and has been placed in OSHA’s Severe Violator Enforcement Program. Laborer’s local 225 said that Santoyo had worked for over 20 years in the Chicago area construction industry.

As a result of the deadly incident, Tollway officials removed Omega from the project, and barred the demolition contractor from any further Tollway work. Judlau Contracting, the general contractor, also had its project manager and an engineering supervisor removed from the project and barred from future Tollway work.