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Sept/Oct 2007 (PDF) Contents PUBLISHER Tall Timber Group EDITOR Jeff Burd 412-366-1857 [email protected] Cover New Grant Street PRODUCTION MANAGER Transportation Center Carson Publishing, Inc. Massaro Corporation, Quellé Diggs Construction Manager IKM Inc., Architect ART DIRECTOR/GRAPHIC DESIGN Rendering by StudioI, Carson Publishing, Inc. Lighting Designer Tarence Davis COVER PHOTO Dennis Marsico CONTRIBUTING PHOTOGRAPHY Carson Publishing, Inc. Features & Departments ADVERTISING SALES Tall Timber Group 412-366-1857 3 PUBLISHER’S NOTE 22 FIRM PROFILE Field Assistant MORE INFORMATION: 4 NEWS FROM Systems Technology BreakingGround is published by THE STREET 24 LEGAL PERSPECTIVE More good news: Pittsburgh Tall Timber Group for the Master BIM creates new Builders’ Association of Western is rated the least risky real estate market and third on contract relationships Pennsylvania, 412-922-3912 or list of Best Future City; www.mbawpa.org Green Building News; MBA 26 FINANCIAL PERSPECTIVE Safety Program goes online; Liquidity concerns are No part of this magazine may be ConsensusDOCS roll out in threatening the lending market reproduced without written permission September; SMPS Pittsburgh by the Publisher. All rights reserved. announces new board 29 MBE/WBE 8 COMPANY SPOTLIGHT This information is carefully gathered and REGIONAL KMA design compiled in such a manner as to ensure MARKET UPDATE maximum accuracy. We cannot, and do Non-residential spending 30 MANAGEMENT not, guarantee either the correctness of all continues but the big news PERSPECTIVE information furnished nor the complete is the housing decline has When and how to invest absence of errors and omissions. Hence, bottomed out in Pittsburgh in new technology responsibility for same neither can be, nor is, assumed. 10 NATIONAL 32 TREND TO WATCH MARKET DATA Advances in communications A strong economy keeps technology are making the commercial spending up industry work better but credit concerns are creeping in 34 BEST PRACTICE Why interoperability is so 11 WHAT’S IT COST? important to collaboration, Prices are treading water. Will and much closer to reality an interest rate cut start to rein building costs in? 36 AWARDS AND CONTRACTS 14 FEATURE STORY Technology is the 38 underpinning of Pittsburgh’s FACES AND new economy, and the best NEW PLACES way to keep development, design and construction 40 THE INDUSTRY businesses healthy IN THE COMMUNITY 20 PROJECT PROFILE 44 New Grant Street CLOSING OUT Technology is one of Transportation Center Pittsburgh’s strengths BreakingGround September/October 2007 1 2 www.mbawpa.org Publisher’s Note t was a year ago that the idea …”it’s been a happy education or research transfer. of a regional magazine for Most of the healthcare construc - construction and real estate coincidence that tion, especially the renovation of became reality, as we existing clinical space, results I from the need to house new published BreakingGround’s in - the commercial augural edition after Labor Day or replacement medical tech - 2006. At the time, the Master construction market nology for surgery, diagnostics Builders’ Association and I felt or therapy. And the most obvi - that there was a need for this has been very strong ous driver is the need industry to have an information for space that comes from source that provided real data over the past two years, technology businesses that start on the market’s activity regularly, and grow (see Medrad, Cel - and a forum to present the good and that 2006 and lomics, or Vivisimo). things that were happening in the region. Construction and design is 2007 have been years also an industry that is a The past year has proven that the where the fruits of voracious consumer of new industry wanted just a resource. technology. It’s easy to forget Your response to the information the redevelopment that something as old school presented in each edition has as a lumbering backhoe is, been gratifying, and the reader - work of the past in fact, an incredible piece of ship has grown by 100% during productivity technology, which that year. replaced the need for dozens two decades have of human earthmovers. As I think it’s been a happy coinci - become obvious…” fees and margins have been dence that the commercial con - squeezed in response to struction market has been very competition, the use of new strong over the past two years, and that 2006 technology to get an edge or reduce costs has multiplied and 2007 have been years where the fruits of the in our industry. redevelopment work of the past two decades have become obvious. Even the normally gloomy local I hope you’ll enjoy the technology edition of press has been unable to dampen the spirits of the BreakingGround , as I hope you’ve enjoyed the six business community. before it. I also hope you’ll be sure to contact me if there’s ever anything you think the magazine should As we start the second year of publishing, the focus of be doing better. We intend BreakingGround to be the this edition will be on technology. Writing that focus on voice of the industry in Western PA and are excited the editorial calendar a year ago seemed pretty simple to see it becoming a ‘must read’ for the market (and and obvious. The topic, however, is so eponymous feel free to keep that in mind when preparing your that I found it was harder to break much new ground advertising budget!). (no pun), especially since we have focused regularly on new technology. What I tried to highlight was how Thanks again for a great start! intertwined the industry is with new technology, both as a creator of new construction and as a cornerstone of the Sincerely, industry’s operations . The story of our region’s transformation from industrial to information-based economy is beginning to get trite, but it is important to remember that the principal driver of construction in Pittsburgh anymore is technology. Much of the new construction at our universities, public Jeff Burd or private, is in response to demand for technology BreakingGround September/October 2007 3 News From The Street More Good News About the PMI Mortgage 2007 Metropolitan Area Summer Market RISK Index Rank City Risk % Metropolitan Pittsburgh has been rated the least risky 1 Riverside-San Bernadino CA 65.2% market for housing for the second straight year by PMI 2 Phoenix-Scottdale AZ 64.6% Mortgage Insurance Co., a subsidiary of the PMI Group 3 Las Vegas NV 61.4% Inc., a Walnut Creek, California-based risk management firm. The price of a house in the area has only a 6.4 4 West Palm-Boca Raton FL 60.7% percent chance of declining, according to the survey of 5 Los Angeles-Long Beach CA 58.6% the nation’s 50 largest metropolitan areas. 6 Santa Ana-Anaheim CA 57.7% 7 Oakland CA 57.2% In contrast, Riverside, Calif., Phoenix, Las Vegas and 8 Orlando FL 56.3% West Palm Beach, Fla., rank highest on the index with a 60 percent or 9 Sacramento CA 56.0% TOP NORTH AMERICAN CITIES higher chance 10 San Diego CA 55.5% OF THE FUTURE that home prices 50 Pittsburgh PA 6.4% will be lower in two years. 2007 MBA Risk Management Committee Rank City The Financial Creates Online Learning Opportunity Times fDi Maga - 1 Chicago zine April/May The MBA Risk Management Committee has developed 2 Toronto 2007 issue ranking an online safety training section linked from the MBA 3 PITTSBURGH of the top major website (www.mbawpa.org). By visiting the MBA web - cities of the future site, area construction professionals will be able to take 4 Atlanta ranked Pittsburgh an OSHA approved 10 or 30 hour construction outreach 5 Guadalajara third overall. The course. The Risk Management Committee does not Financial Times intend for this to replace traditional classroom training 6 Baltimore fDi, a magazine courses, but instead act as an additional option to 7 Montreal about foreign meet our industry’s unique demands. “The new online direct investment, training courses will provide MBA members with another 8 Mexico City asked a panel of convenient way to train their workforce with the best 9 Boston judges drawn materials available,” said Joseph Franceschini, Risk from international Management Committee Chairman. 10 Miami location consult - Source: Financial Times’ fDi Magazine ants, corporate Developed in partnership with 360 Training, the online April/May 2007 Issue executives and courses will be offered at a significant discount to MBA other experts, to rank cities in North America based on members. While other construction associations opt to seven economic categories. Pittsburgh ranked in keep the revenue sharing offered by 360 Training, MBA the Top 10 of all seven of the selection categories will pass on the savings to the membership in the form of listed below: a discount. OSHA courses will be offered at a 30% dis - count for members, while all other courses will be • Best Economic Potential offered at a 40% discount. MBA members have begun • Best Infrastructure using this cost and time effective training tool. • Best Development & Investment • Promotion “The Committee’s goal is to provide MBA members • Most Cost Effective with an abundance of opportunities to obtain timely • Best Human Resources and effective safety training,” said Bob McCall, MBA • Best Quality of Life Director of Safety. • Most Business Friendly 4 www.mbawpa.org For more information on the MBA’s Risk Management construction associations, including the Associated Committee and safety training, contact Bob McCall at General Contractors of America (representing the MBA 412-922-3912 or [email protected] . nationally), are uniting to publish a consensus set of standard contract documents called ConsensusDOCS. ConsensusDOCS—Construction With the target launching date of September 28, 2007, Associations Create Unified the AGC and Construction Owners Association of America (COAA) will be folding its contract documents Voice for Contracts program into this consensus process.
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