Tuesday, September 30, 2008

Letters of intent: Diamond Build -v- Clapham Park Homes

The contractual effect of letters of intent and caps on liability.

Summing upThe case:  Diamond Build Limited -v- Clapham Park Homes Ltd [2008] EWHC 1439 (TCC). The issue: The contractual effect of letters of intent and caps on liability. The implication: The signed letter of intent created a simple contract, but the formal signing of the contract by deed was required to create a contract on the JCT terms. The cap in the letter of intent was limited to the tendered work and, to a limited extent, could be avoided where work was undertaken that was additional to or different from the tendered requirements.

Letters of intent can be accompanied by considerable uncertainty as to the extent of the parties' respective obligations or as to whether there is a contract at all. Such matters arose in the case of Diamond Build Limited -v-Clapham Park Homes, which concerned the issue of whether a contract contained in a letter of intent had evolved into a standard form of contract.
Letter of intent

Clapham accepted Diamond's tender and issued a letter of intent, which Diamond signed and accepted. The letter of intent stated that the parties would enter into a JCT Intermediate Form of Building Contract and that the undertakings in the letter would be extinguished upon the execution of the formal contract. The specification also stated that the contract was to be executed as a deed. The letter also contained a cap of ВЈ250,000 on any reimbursement that Diamond would receive in the event that a formal contract was not executed.

In October 2007, Clapham issued the contract documents to Diamond for signature, but Diamond did not sign and return them.

Work progressed from July 2007 and Diamond placed orders with subcontractors to a value of about ВЈ1.5m. Diamond made monthly applications and claims for extensions of time, and Clapham issued interim certificates and instructed variations. In November 2007, owing to delays, poor workmanship and a general deterioration in the relationship, Clapham, relying on the provisions of the letter of intent, terminated the contract. Diamond responded by stating that, owing to the issue of the contract documents for signature, things had moved on since the issue of the letter of intent and that a contract existed based upon the JCT Intermediate Form. Additionally, Diamond stated that the cap was no longer applicable as Clapham had issued instructions and had been involved in placing orders with a specialist window contractor.

Standard form of contract

Diamond sought a declaration that by the time its relationship with Clapham had been terminated, a standard form of contract existed between them. The question to be determined was whether the letter of intent had been superseded by a JCT Intermediate Form, preventing Clapham from relying on the cap on its liability.

Diamond argued: (i) its acceptance of the letter of intent did not create a contract (ii) even if the letter of intent created a contract, once the parties were in the position to execute a formal contract (which Diamond considered to have occurred upon the issue of the contract documents), the letter of intent lapsed in favour of the intended contract (iii) the cap on Clapham's liability was unfair as the limit would be quickly exceeded.

In relation to the issues, the judge decided: (i) the letter of intent created a simple contract, as it had sufficient certainty: there was a commencement and completion date, a requirement to proceed regularly and diligently, an overall contract sum and an undertaking to pay reasonable costs in the interim (ii) the contract in the letter of intent had not evolved into a standard form of contract, as the stipulation in the letter of intent and specification requiring the execution of a formal contract as a deed had not been complied with. The judge stated that by accepting the letter of intent, the parties accepted that the terms of that letter governed the rights and obligations of their relationship until the formal contract was signed, allowing Clapham to rely on the cap (iii) the cap related only to work that was the subject matter of the tender. The judge stated if additional or different work was ordered by Clapham to be done by Diamond, that it would attract payment in addition to and above the cap on a quantum meruit basis.

In summary, if the creation of a formal contract is conditional upon compliance with a particular stipulation, no enforceable contract will exist until that stipulation has been fulfilled. In this case, the formal execution of the contract as a deed was required to create a contract on the JCT terms under the letter of intent.

Additionally, to a limited extent, the cap in this case could be avoided where Diamond undertook work that was additional to or different from the tendered requirements.

Friday, September 26, 2008

Kuwait firm sues Jewson over 'defective' pipes

A government pipeline used to funnel aviation fuel to Redcliffe Bay was deemed “defective” after a subcontractor allegedly installed the wrong pipes.

The Kuwait Petroelum International Aviation Company UK (KPIAC) is suing Jewson and Ovalbrick over a mistake that caused an 11-month delay in a project to upgrade pipes near Bristol in 2002.

KPIAC was asked by the defence secretary to carry out design construction and commissioning works for the upgrade of the government pipeline and storage system.

It used Trident Engineering Consultants (TEC) as a project manager, which later accepted a tender from O’Neill and Dixon (OND) for pipework and steelwork, who in turn subcontracted to Ashworth Frazer (AF).
In a writ filed at the Technology and Construction Court, KPIAC claim supplied pipes did not meet correct standards and had surface breaking defects with wall thicknesses that did not comply with specified tolerances.

The firm allege AF failed to warn or advise when it became apparent that the pipes supplied "appeared defective".

The writ notes that as early as January 2003, queries were raised with AF over slivers of metal protruding from the surfaces of the pipes.

From May 2003 several reports were commissioned into the defects, with one investigator finding the pipework was of “insufficient thickness”.

Investigations found the pipes did not need replacing, but because of delays caused by testing the project was finished 47 weeks late.

OND went into liquidation in January 2006 and assigned its rights in the subcontract to KPIAC. TEC also assigned its rights to KPIAC, who is now suing Jewson and Ovalbrick, formerly Saint-Gobain Pipe Systems trading as Ashworth Frazer.

It wants ВЈ1,068,065 for the costs of tests, consultants, enhanced maintenance and delays.

Thursday, September 25, 2008

Kit Bond Brainchild Target of Scammers

An investigation by the Government Accountability Office of a federal economic development program known as the HUBZone program has found that lax oversight has left it rife with fraud.

In the six month long investigation, which ended in June 2008, the GAO obtained HUBZone certification from the Small Business Administration for four fake businesses. Certification qualifies the businesses for federal contracts under the Historically Underutilized Business Zone (HUBZone) program.

Kit Bond Brainchild Target of Scammers

In addition, 10 of 17 HUBZone businesses the GAO looked into in Washington, D.C. failed to meet the eligibility requirements for the program. Those same 10 firms have received more than $105 million in federal contracts since 2006. In the case of one of the firms, the GAO made multiple visits to the site listed as the firm's principal office, but found that no employees were working at the location and the only business equipment present was a computer and a filing cabinet. That firm received $3.9 million in HUBZone contracts from the Army and the Air Force during fiscal year 2006-2007, but its principal office was actually in McLean, VA, an upscale Washington, D.C., suburb that is not in a HUBZone.

The House Committee on Small Business heard about the results of the investigation in a public hearing on July 17. The committee chair, Rep. Nydia Velazquez (D-N.Y.), said in her opening statement that the findings of the investigation were "appalling."

"It's tougher to get a library card than it is to get into the HUBZone program," she said. "All you need is a bit of White-out. It's absolutely shameful."

The investigation was undertaken at the committee's request.

Sen. Kit Bond (R-MO), wrote the 1997 bill that created the HUBZone program to promote economic development and employment growth in distressed rural and urban areas by giving small companies located in those areas preference in Federal contracting opportunities. Since then, he has pushed federal agencies to increase contracting through the program. A year ago, he criticized federal agencies for falling far short of meeting the goal set by Congress of awarding three percent of prime contracts to HUBZone companies.

To qualify for HUBZone certification, a firm must be owned and controlled by at least one U.S. citizen, 35 percent of its full-time employees must reside in a HUBZone, and the firm's principal office must be in a HUBZone area.

In the bi-state area, the City of St. Louis, University City, Pagedale, Pinelawn and additional parts of North County in Missouri and East St. Louis, Centreville, Washington, Fairmont City, Brooklyn, and Venice in Illinois are all in HUBZones.

The GAO estimated that $8 billion in federal spending flow to the 14,000 firms in the program. HUBZone firms are supposed to get a 10 percent price preference when competing against large businesses for contracts. In other words, HUBZone firms can charge up to 10 percent more than their non-HUBZone competitors and still get the federal contract. According to the Missouri Small Business Development Centers, federal contracting officers also can restrict contracts to HUBZone companies if they think two or more HUBZone companies will submit bids. For contracts worth less $3 million, they can designate a HUBZone company as a sole source provider. In addition, federal agencies are supposed to require a HUBZone subcontracting plan on any prime contract with a non-HUBZone company worth more than $500,000.

In a statement emailed by Sen. Bond's office, Missouri's senior senator said, "Fraud, abuse and poor management found by the GAO investigators was not just troubling, but unacceptable. While I am pleased that SBA has already taken steps to address these problems, I will monitor carefully their efforts to ensure that the program operates as intended by the Congress."

This not the first time that allegations of lax oversight and fraud have dogged the HUBZone program.

"The GAO report confirms the claims contractors have been making for years - that the Small Business Administration (SBA) has failed to execute its oversight authority over the HUBZone program," said AGC's chief executive officer Stephen Sandherr. "The HUBZone program has been a huge administrative failure, which has cost the program its potential as a legitimate contracting vehicle, the opportunity for growth for these disadvantaged communities and billions of lost taxpayer dollars."

AGC has long expressed significant concerns about the effectiveness and fairness of the HUBZone program as it is applied to the construction industry and has advocated that significant improvements be enacted to reform the program. The program does not realize its goal of increasing employment and reinvesting in economically disadvantaged areas.

AGC advocates the following changes to the HUBZone program:

Applying the HUBZone program only to contracts for the construction of federal projects within a 150-mile radius of the HUBZone contractor's principal place of business. According to the AGC, only those projects can offer employment to a significant number of HUBZone residents, and only those projects can promise to make a lasting change in their economic circumstance. Requiring that HUBZone residents receive at least 30% of the payroll needed to perform all HUBZone contracts. According to AGC, using payroll as the measure will avoid pass through purchases of materials and supplies that encourage brokering by legal HUBZones entities that nonetheless are not actually building construction projects. Requiring the SBA to routinely investigate alleged abuses of the program within 10 days. Reducing the price preference in construction to five percent. Letting contractors protest a sole source designation on the grounds that the HUBZone contractor does not actually qualify for the program. Requiring construction firms - companies that experience large fluctuations in employment throughout the course of any given year - to provide certified payroll records at the end of each year to demonstrate that HUBZone residents truly worked at least 35% percent of all the hours worked in that year.

Continental Cement Selects Wilson for Downtown Cement Facility

S. M. Wilson & Co. was selected by Continental Cement Company, LLC to build a new $15 million barge unloading facility and dome storage facility at the company's terminal in downtown St. Louis.

Continental Cement Selects Wilson for Downtown Cement Facility

Construction will be completed in two phases. Phase I will involve the construction of a 40,000 ton cement storage dome with an adjoined cement transportation center. In addition, a 1000 square foot building also will be built to house equipment. Phase II of the project will include the construction of the new barge unloading facility on the Mississippi River. A utility bridge will be constructed to connect the new unloading facility to the storage dome.

Construction for Phase I is scheduled for completion in late 2008, while Phase II is targeted for completion in May 2009.

EDG Consulting Engineers, based in Columbus, Ohio, is the engineering firm for the project.

OSHA Proposes Per Employee Penalties for PPE and PPE Training Violations

The American Subcontractors Association reported that on Aug. 19 the Occupational Safety and Health Administration proposed to "clarify" how it will apply penalties for violations of Personal Protective Equipment (PPE) rules.

In response to a case before the Occupational Safety and Health Review Commission that suggested that "minor variations in the wording of the provisions affect the Secretary's authority to cite and penalize separate violations," OSHA said that it "interprets its respirator and training provisions to impose a duty upon the employer to comply for each and every employee subject to the requirement regardless of whether the provision expressly states that respirators or training must be provided to ‘each employee.'"

OSHA's proposed change would make explicit in the 29 Code of Federal Regulations Parts 1910 through 1926 employers' duties to provide PPE, such as respirators, to each employee who performs covered tasks and to train them to use PPE properly. OSHA set a deadline of Sept. 18, 2008, for public comments or requests for hearings on this change, but ASA has asked for a 90-day extension to allow more feedback.

Wednesday, September 24, 2008

Rights and remedies: VGC Construction -v- Jackson Civil Engineering

What happens when there's a dispute prior to adjudication?

Summing up

The case: VGC Construction Limited -v- Jackson Civil Engineering Limited, TCC 15 August 2008.

The issue: The extent to which it is necessary to particularise claims in order to formulate a dispute capable of being referred to adjudication.

The implication: The courts will be reluctant to refuse enforcement of an adjudicator's decision solely on the basis that the claim lacked detailed particularisation prior to the adjudication, providing it can be said that a dispute was in existence.

The case

The recent case of VGC Construction -v- Jackson Civil Engineering examined the extent to which there needed to be sufficient evidence of a dispute for the matter to be referred to adjudication.
VGC was engaged by Jackson as subcontractor for the provision of ducts and cabling on the M3 motorway. The subcontract between the parties was based upon the ICE form of subcontract intended for use with the 6th edition of the main contract form. It was recognised by both parties that the design of various parts of the works was relatively incomplete at the outset and that there would be the need for variations to be instructed to the initial scope of works. In the event, however, matters did not proceed smoothly.

The initial subcontract period of 26 weeks overran by a further 26 weeks. By October 2007, almost one year after commencement, the parties disagreed on who was responsible for this delay and the resultant costs. In broad terms, VGC had applied for payment of ВЈ4.3m, against which Jackson had valued the works at approximately ВЈ3.6m, but deducted a further ВЈ750,000 for contra-charges.

Extensions of time

At this stage, Jackson's complaint was that VGC had failed to properly particularise and substantiate its claim for extensions of time and additional monies. By way of example, the application for payment contained, among numerous additional items, a one-line item buried within the variation account, which simply stated "delay and disruption ВЈ300,000".

VGC's extension of time claim was apparently no better. It had claimed an extension of time of 26 weeks calculated by reference to the date when the claimed additional works instructed by Jackson had been completed. This was supported by a four-page document that did little more than list the complaints that VGC considered were sufficient to justify an award of further time.

A number of meetings were held by the parties and progress was generally made in agreeing the measured work sections of the account, but the disputes concerning the extension of time, the delay and disruption claims, and the contra-charges remained unresolved. In May 2008, VGC commenced adjudication in respect of the entirety of the account.

In its response to the adjudication referral, Jackson contended that the claim for delay and disruption in the sum of ВЈ300,000 had been provided with no substantiation or prior notification. Jackson also complained that the claim for extension of time had been no more than a table of contents lacking supportive information and justification.

Despite the fact that six months had passed since those claims had first been made, Jackson maintained that the referral in the adjudication had hardly improved upon that situation and accordingly that the adjudicator had insufficient material to assess the validity of VGC's claim.

Overrun period

As if to confirm this, VGC clarified in its reply that the ВЈ300,000 claim for delay and disruption was in fact a Hudson formula overhead and profit claim calculated over the 26-week period of overrun. Unsurprisingly, Jackson responded to say that this calculation was totally new and that the adjudicator should treat this evidence as inadmissible in the adjudication.

The adjudicator was not asked to give reasons for his decision and did not do so. He concluded that the value of the final account should be ВЈ3.9m and that the value of the contra-charges levied by Jackson should be nil. He ordered that Jackson should pay to VGC this total less previous payments and retention, and that Jackson should be responsible for paying the adjudicator's fees. Jackson refused to pay and the matter came before the court for enforcement proceedings.

Jackson primarily opposed enforcement on the basis that the claim for ВЈ300,000 was of such a nebulous nature that there could be no dispute in respect of it. Jackson argued that the claim lacked contractual foundation, was unsupported by any form of detail or analysis, and was nothing more than a single-line demand for ВЈ300,000. Jackson also contended that during the course of the adjudication, this claim had become an entirely new claim with the consequence that the adjudicator had no jurisdiction to deal with it.

Unfounded complaints

Mr Justice Akenhead concluded that Jackson's complaints were unfounded. There was clearly a dispute between the parties on the value of the entirety of the account over which the adjudicator had jurisdiction to decide. The ВЈ300,000 claim for delay and disruption was contained within the variation account and, in the judge's view, this was not so nebulous or ill-defined as to be incapable of giving rise to a dispute.

Surprisingly, Justice Akenhead took the view that to any reasonable recipient in the circumstances, it was obvious that this claim was an overhead and profit type claim, even though prior to the adjudication the subcontractor had not described it as such.

In conclusion, there was no effective challenge to the jurisdiction of the adjudicator and accordingly the order for enforcement of the adjudicator's decision was upheld.

Tuesday, September 23, 2008

Hanley and Eager Improvements Added to I-64

The Missouri Department of Transportation, Gateway Constructors and St. Louis County announcedmore improvements at the Hanley and Eager intersection as part of the I-64 reconstruction contract. St. Louis County will pay Gateway Constructors $4.6 million to complete the work with the I-64 contract keeping the original completion milestone for I-64 to open all lanes by Dec. 31, 2009. Construction will begin on the I-64/Hanley interchange and Hanley and Eager intersection when the west half of I-64 reopens in late 2008 or no later than Jan. 2, 2009.

"In order for us to complete the additional work and keep our schedule, Hanley Road over I-64 will be closed for up to eight months," said MoDOT District Engineer Ed Hassinger. "The keys to getting around will include the opening ofI-64 from I-170 west including Brentwood and the reopening of access from Eager to northbound I-170. All of these items will be complete before we close Hanley. We will also connect two lanes in each direction on Hanley directly to Eager Road so traffic can flow from Hanley to Eager to the I-170 ramps."

MoDOT's original design for the Hanley and Eager intersection would have restricted the traffic to just a right turn in and right turn out of Eager at Hanley. The additional improvements will enable traffic on Hanley and Eager to travel in either direction through the intersection, with reduced congestion.

"The Hanley and Eager intersection is notorious for terrible traffic and this project will provide a great improvement to the traffic flow when complete," said St. Louis County Executive Charlie Dooley. "Doing the work now reduces the disruptions to motorists if we had to do this work after I-64 was complete and costs less than half of what it could cost to do it later. The County will work with MoDOT to spread the word that Mid-County is still open for business and there are many ways to get around."

Lake St. Louis “Lifestyle Center” to Open

Davis Street Land Co. is opening The Meadows at Lake St. Louis on Aug. 23. The Meadows is the first lifestyle center developed in St. Charles County. The first phase includes nearly 30 retailers and restaurants, including 13 opening their only stores in St. Charles County plus three making their Missouri debut. Designer of the complex is M+H Architects. Brinkmann Constructors is the general contractor on the $33 million project. Other team members are Stock and Associates , civil engineer; Alper Audi Inc., structural engineer; Durrant, M/E/P; and SWT, landscape/hardsca

Lake St. Louis “Lifestyle Center” to Open

Located on a 64-acre site at Lake Saint Louis Boulevard and Interstate 64 (I-64), the center will include such retailers as BC's Kitchen, Banana Republic, Cach, Chico's, Clarkson Jewelers, Coldwater Creek, Eddie Bauer, Jos. A. Bank, New Balance St. Louis, Puddle Ducks, Salon Kashmir, Talbots and The Walking Company. Three retailers will be making their Missouri debut at The Meadows, including Von Maur Department Store (to open in 2010); Backwoods, the outdoor apparel chain opening in early 2009; and Bachrach.

Phase I features four retail buildings totaling 260,000 square feet clustered around an inviting central plaza with seating and performance spaces. A 15-foot tall bronze sculpture by local artist Marty Linson stands at the plaza's center. A 40-foot-tall clock tower marks the octagonal-shaped plaza with its venue for festive events presented on an inviting stage. A pergola with a redwood trellis forms the backdrop for the stage. Four 12-foot-high stone columns topped with limestone planters mark gateways to the plaza.

Each of The Meadows' four buildings hosts 10 to 15 retailers. Storefronts contrast deep-set, limestone frames with 11- to 15-plus-foot-tall shop windows and clerestories accented with brick and limestone facades. Shops feature distinctive entrances which emphasize individual brand. Continuity is expressed in cast medallions bearing the logo of The Meadows and store addresses, a limestone ribbon around each building and gabled roofs with slate-style shingles and ornamental copper gutters, downspouts and flashing.

A dozen patterns and types of brick pavers and stamped concrete are used to subtly direct way-finding. Cast iron benches and decorative railing framing landscaped stretches add to the charm. The center is planted with more than 100 varieties of trees, grasses, and flowers. Parking is provided via discreet, intuitively navigated roundabout slowing and directing automobile traffic around the plaza.

At night, architectural lighting illuminates elements of building facades shadowed during the day, including basket weave brick patterns beneath eaves and medallions. Landscape lighting and cast iron street lights brighten walks for shoppers.

Lake St. Louis “Lifestyle Center” to Open

The Meadows at Lake Saint Louis is owned, leased and managed by Davis Street Land Company in partnership with Bruce Johnston, a lifetime resident of St. Louis with more than 25 years of retail real estate experience. Based in Chicago, Ill., Davis Street develops and owns upscale specialty and lifestyle centers. The principals of the company are responsible for such unique retail properties as Plaza Frontenac and The Shops at Clarkson Corner in St. Louis, Renaissance Place and Orland Park Crossing in Chicago, The Mall at Green Hills in Nashville, Tenn. and The Gardens on El Paseo in Palm Desert, Calif. To learn more, visit http://www.dslandco.com .

Eight busted in raids on Scottish construction sites

Police have continued their crackdown on rogue security firms in Scotland, raiding seven construction sites in Coatbridge, North Lanarkshire.

Officers with operatives from the Security Industry Authority (SIA) and Department for Work and Pensions targeted 10 security guards at the sites.

Six were found to be working without valid security licences and two were not displaying their licences.

SIA’s head of investigation Christy Hopkins said: “We will keep targeting security sites and keep the environment as hostile as possible for rogue security firms – we cannot let them have a strong hold in the security industry.

“By working together with our partners, we send a strong message that non-compliance with the law will not be tolerated.”
The operation was the latest in a series of raids aiming to crack down on security gangs with links to organised crime.

The SIA said the rouge security firms extorted money from builders, demanding contractors hire their security teams “or else”.

Monday, September 22, 2008

Hilliker Corporation Announces Transactions

Hilliker Corporation announced the following real estate transactions:

Hilliker Corporation Announces Transactions

Meade Summers represented both parties in the lease of 56,409 sq.ft. of office/warehouse space located at 6800 Prescott Avenue in the City of St. Louis to Mid-States Supply Co. by Mayfair & Woodcliffe, LLC.

Scott Martin represented Douglas DeVries and Cherie Francois in leasing the 2,680 sq.ft. retail space located at 530 East Osage in Pacific to Faith Fellowship Church who represented itself.

Jim Newman epresented both parties in the lease of 9,100 sq.ft. of office/warehouse space located at 4806 Potomac in the City of St. Louis to Gateway Custom Millwork LLC by J.D. Investments Company of Missouri.

Peter Newton represented both parties in the lease of 2,900 sq.ft. of retail space located at 6922 Manchester Avenue in Maplewood to Papagoyos Inc. by Baltic Properties LLC.

Will Aschinger represented Graniterra/European Tile and Marble in the purchase of the 5,500 sq.ft. office/warehouse building located at 647 Trade Center in Chesterfield from Envirotest Systems Corporation represented by NAI Desco Commercial.

Meade Summers represented both parties in leasing 28,323 sq. ft. of office/warehouse space located at 4410 Hunt Avenue in the City of St. Louis to Ace Pipe Cleaning, Inc. by Dr. Jesse F. Donnell, LLC.

John Hoofman represented Paul Ronsick in the sale of the 34,412 sq.ft. of land located at 3055 N. Lindbergh in Florissant to Millennium Venture Group Inc. represented by St. Louis County Realty.

Dogfight Over Metro East Air Park Project

In the latest episode of a story line worth of television drama, Troy D. Martin, head of Martin Aviation Group, a company that announced plans for a $4 billion air park in Metro East, said that he fired The Korte Co. as his general contractor prior to their announcement this week that they had quit.

Dogfight Over Metro East Air Park Project

Martin's biggest claim to fame prior to the announcement of the condominium project at Downtown St. Louis Airport was as the passenger in a Cessna that was almost shot down by military jets over the White House in 2005.

He has said that the project — which is projected to have 42 buildings with two expansion towers totaling 4 million square feet — will cater to non-U.S. companies wishing to establish a North American headquarters. The website for the the project claims, among other things, that the condominium project, where buildings are projected to sell at $950 per square foot, will have a 10,000-space parking garage and helicopters and chauffeured Rolls Royce limosines for executive tenants. The mile-long campus, which is termed the "Golden Mile" on Martin's website.

Martin said that Korte had not performed and that he has hired Holland Construction Services to replace Korte.

Clayco Named Construction Manager for New Supercomputer Facility

Clayco Inc. was recently named construction manager for a new 90,000-square-foot computing facility for the University of Illinois at Urbana-Champaign and the National Center for Super Computing Applications (NCSA).

Located in Champaign, the NCSA Petascale Computing Facility (PCF) will house a new supercomputer currently in development, known as Blue Waters. This IBM system's enhanced computing power will enable scientists and researchers across the United States to make extraordinary leaps in scientific discovery.

The PCF will feature a command center, system administration center and office space for 50 staff members. It will also contain a 20,000-square-foot machine room with a six-foot raised floor large enough to house Blue Waters, as well as other systems. Current plans also call for 24 MW electrical capacity and 5,400 tons of water cooling capacity from the University's chilled water distribution loop.

"Clayco's experience in data center design and construction will allow us to work in harmony with the innovative computer architecture and the needs of the scientists," said Scott Murnick, project director at Clayco and on the NCSA Petascale Computing Facility project. "We are excited for the challenge to drive the creation of a facility that embraces the requirements of operating an unprecedented research infrastructure while offering strategies for a system with the least impact on the environment."

Energy efficiency and sustainability are pivotal to the design and construction of this project. The PCF will achieve LEED certification, with LEED Silver certification as the goal.

Environmental efforts include building three on-site cooling towers to provide water that has been naturally chilled by the cold outdoor air, rather than electrically cooled and eliminating the installation of an Uninterruptible Power Supply to minimize floor spaced required and increase energy efficiency. Since Illinois is ranked among the top states in tornado frequency, the building is also designed to withstand an F3 tornado and winds of 165 mph.

Clayco added Nova as a team member. "We just finished a Mission Critical project with Nova in Chicago. This is a winning combination," said Steve Street, project executive. Nova is a Mission Critical Contractor based in New York, New York.

Clayco's project team includes Steve Street, project executive; Frank Baum, project estimator; Chad Derus, project manager; Frank Wiza, project superintendent; Scott Murnick, project director; and Kevin McKenna, Regional Vice President. The architect is EYP Mission Critical Facilities and the interior designer is M. Arthur Gensler Jr. & Associates. The civil engineer is the Terra Technologies, Inc., the structural engineer is Rubinos and Mesia Engineers, Inc., and the mechanical engineer is Schirmer Engineering Corporation.

Randy Burketet Lighting Celebrates 20 Years

Randy Burkett Lighting Design, Inc. is celebrating 20 years of professional practice. The Saint Louis based architectural lighting design firm was founded in 1988 by Randy Burkett, FIALD, IES, LC. Their lighting work has been honored numerous times with design awards for projects throughout the United States and abroad for distinction, design excellence and technical achievement.

Randy Burketet Lighting Celebrates 20 Years

Local past and current projects include: The Gateway Arch; Lumiere Place and Four Seasons Hotel including the River City Casino Hotel; Renaissance Grand Hotel; Old Post Office and CustomHouse; St. Louis Science Center; and The Penguin and Puffin Coast at the St. Louis Zoo.

National and worldwide projects include: The Martin Luther King Jr. Memorial in Washington, DC; 111 West Illinois Building in Chicago; Utah State Capitol historic renovation in Salt Lake City;St. Anthony's Falls Bridge I-35 Replacement, Minneapolis; Goethels Bridge Replacement, New York, NY; Zhe Jiang Fortune Finance Center in Hangzhou, China; Sea World Shark Encounter of Florida in Orlando, FL; Orange County Convention/Civic Center in Orange County, FL; and The American Queen Steamboat.

Lighting Design offers a complete range of services from initial conceptual development through final construction administration. The team's professional experience includes: skills in complete design formulation and development, equipment layout and specification, architectural detailing, custom luminaire design, solar and lighting energy analysis. The firm specializes in both interior and exterior project types including: corporate, retail, shopping malls, museum/exhibit, conferencing facilities, hotels, restaurants, religious structures, themed environments, monuments, and bridges.

Sunday, September 21, 2008

PRIDE Honors Four Industry Builders

On Aug. 13, four area leaders will be honored by PRIDE for their teamwork-building efforts to advance St. Louis as the best place to build at an awards luncheon.

The honorees are:

PRIDE Honors Four Industry Builders

Mark S. Wrighton, chancellor, Washington University. While not a developer, few over the last decade have had a larger impact on the St. Louis construction industry. Wrighton will be honored with the PRIDE Industry Impact Award for expanding Washington University’s legacy of excellence that in the 13 years of his tenure has led to the commissioning of 30 new buildings. He has also encouraged significant minority participation in building projects. Further, Wrighton has advanced the university’s tradition of educating architects, engineers and construction managers through improvements to the Sam Fox Arts School of Design and Visual Arts, the John M. Olin School of Business and the soon-to-expand school of engineering.

Robert P. Elsperman, P.E., chairman, Tarlton Corp. A fixture in the St. Louis construction industry for more than 55 years, Elsperman brought a construction entrepreneurs’ perspective to the PRIDE board when he served as management co-chair from 1998 to 2003. Elsperman, who continues to attend PRIDE board meetings, has been affiliated with the organization for nearly 30 years. Elsperman will be receiving the Al Fleischer Management Award named for the late Alfred J. Fleischer, who helped co-found PRIDE and was its first management co-chair.

Rick Schaefer, director of department planning and capital projects, Malinckrodt Institute of Radiology at Washington University School of Medicine. As PRIDE owner co-chair from 2004 to 2007, Schaefer fostered greater two-way communications between union construction industry stakeholders and the buyers of their services. Prior to being named co-chair, Schaefer served on a number of committees to help advance construction industry proficiency in the region. Schaefer will be honored with the Joe Rinke Owner Award. The award is named for Joseph W. Rinke, PRIDE’s first owner co-chair.

William Bernard, president emeritus, International Association of Heat and Frost Insulators and Asbestos Workers. A native St. Louisan, Bernard rose from the rank of apprentice in Asbestos Workers Local 1 in 1950 to become a national and international ambassador for the tenets of PRIDE. He led the historic negotiations that unified the Plumbers and Pipefitters Union, which set a national and international precedent on cooperation between unions. Bernard will be honored with the Dick Mantia Labor Award. The award is named for Dick Mantia, who co-founded PRIDE and remains board member emeritus of the organization.

“These are stalwarts of our industry,” said Jim LaMantia, executive director of PRIDE. “Each has embraced and furthered the principles of cooperation to build a better future for the St. Louis area and its union construction industry.”

The award recipients will be honored at luncheon at the Renaissance St. Louis Grand & Suites Hotel in downtown St. Louis.

PRIDE, founded in 1972, is an acronym for Productivity and Responsibility Increase Development & Employment. For more than 35 years, PRIDE has worked to maintain harmony and build cooperation among St. Louis area AFL-CIO construction craft workers, contractors, construction buyers, architects, engineers and suppliers.

Washington University’s Danforth University Center Complete

Clayco Inc. has completed construction on Washington University's new Danforth University Center in St. Louis, Mo. The $43 million, 115,880-square-foot University Center also achieved LEED Gold certification by the U.S.en Building Council (USGBC).

"The Danforth University Center project is a marquis for Clayco. Its construction and architecture embraces a variety of positive influences under one roof," said Steven Street, Clayco's project director. "For instance, the new University Center integrates sustainable design elements, functional public spaces, thought-provoking interior and exterior finishes, and practical amenities in one meeting place to inspire learning and creativity. Furthermore, careful collaboration between the design, construction and ownership team facilitated the completion of the new facility in time for the 2008 fall semester students to enjoy its outstanding features."

Washington University’s Danforth University Center Complete

Finished in just 16 months, Danforth University Center is located between Simon Hall and Mallinckrodt Center on the Washington University campus. The new three-story University Center houses WUTV-TV, Student Life newspaper, the student union, student and faculty dining areas, conference rooms, campus life offices, a game room and a common area. Built over a pre-constructed, three-story 520-car parking garage which was an earlier Clayco project, the University Center features reinforced concrete with a granite stone facade, complementing the collegiate Gothic architecture displayed throughout the campus.

In addition, Clayco completed a variety of other projects to improve the campus infrastructure prior to the facility's construction. These included incorporating extensive landscaping to conceal the garage, installing underground utilities to support the central underground garage and main garage, and building a 92,000-square-foot addition to the Snow Way parking garage.

Beginning designs for the project included pursuing certification in USGBC's Leadership in Energy and Environmental Design (LEED) program. However with great effort from all team members involved, the project jumped from Certified to Gold standard. LEED is USGBC's leading rating system for designing and constructing the world's greenest, most energy efficient, and high performing buildings.

Danforth University Center was designed to incorporate a number of sustainable strategies that positively impact the project itself and the broader community. These features include the use of natural materials and lighting controls.

"We are proud to construct buildings that defend and protect our community's environment while at the same time being the best value for our clients," added Street. "Bringing these two critical elements together in new and innovative ways is what drives our company's success."

Clayco's project team included Kirk Warden, Clayco Senior Vice President and Partner and project executive; Pat Moriarity, senior project manager; Jamie Callaway, project manager; Craig Buchheit, project superintendent; Gary Marrin, operations manager; and Street. TSOI/Kobis & Associates of Cambridge, Mass., was the architect. Joining Clayco on the project were CommArts, interior designer; Woolpert Inc., civil engineer; KPFF Consulting Engineers, structural engineer; Bell Electrical Contractors, electrical engineer; Murphy Co., mechanical engineer; Corrigan Co., plumbing; and Ahern Fire Protection, fire protection.

Clayco Inc. is a full-service real estate development, design and construction firm with annual revenues of $871 million, specializing in "the art and science of building." With offices in St. Louis, Chicago and Detroit, Clayco provides design-build project delivery on a nationwide basis for the corporate, financial, industrial, institutional and residential markets. For more information, visit http://www.claycorp.com .

Saturday, September 20, 2008

Frieze Harley Takes LEED Gold

Frieze Harley-Davidson in O'Fallon, IL, a winner in this year's CNR Regional Excellence Awards, was recently notified by the U.S. Green Building Council that the company's new building has been awarded LEED Go

Frieze Harley Takes LEED Gold

ld certification. The certification makes the dealership the first LEED Certified Harley-Davidson dealership in the country.

"I am very excited to be the first Harley-Davidson motorcycle dealer to construct a LEED Certified building," stated Jenny Frieze, owner and general manager of Frieze Harley-Davidson. "I hope other business owners and Harley-Davidson dealers will be encouraged to take similar steps when constructing new facilities. I am very proud to have the opportunity to contribute to a program that will have a positive impact on preserving our environment."

Karasek Architects were the designers of the new eco-friendly building. Trumpet Builders was the project's general contractor. Vertegy Consultants was the sustainability consultant.

Frieze Harley Takes LEED Gold

The 33,000 square foot Frieze showroom and maintenance shop is partially powered by a wind turbine. It was constructed with insulated concrete forms (ICFS), an energy-efficient structural wall system providing an insulation R-value of 40.

The building's environmentally-friendly aspects include rapidly renewable bamboo wood flooring, specialty coatings in the display area, and a combination of lighting means. Natural light that is emitted through the northwest showroom windows and more than 40 solatubes ia supplemented by the computer-controlled light system, which provides an energy savings mode for all of the artificial light fixtures. Another energy saving feature is the maintenance shop's radiant floor system, which is heated from burned waste oil.

The building is sited within naturally landscaped grounds, using native grasses, plants, and drought-tolerant shrubs and trees. The natural look, in lieu of a manicured lawn, limits maintenance and water use on the grounds.

Michael Tobin to Head Centene Project

U.S. Equities Realty announced that real estate management veteran Michael Tobin will oversee its Centene Plaza project, a mixed-use urban center housing Centene Corporation's headquarters in Clayton.

"We are thrilled to have such a visionary and respected industry executive joining our talented team," said Robert A. Wislow, chairman and CEO of U.S. Equities. "The depth and breadth of Mike's experience enhances our group's expertise and allows us to focus on our pursuit of new development opportunities."

With 33 years of experience in Chicago's commercial real estate industry, Tobin most recently served as a partner with Northern Realty Group where he oversaw all acquisition and development efforts. Tobin generated more than $325 million in development projects during his ten years with the firm. Prior to joining Northern Realty Group, Tobin spent six years as president and chief operating officer of Central Station Development Corporation where he directed the development of a 100-acre mixed-use community on Chicago's lakefront. In addition, Tobin spent eight years as vice president of development for Metropolitan Structures, Inc., where he managed more than $650 million in development.

Tobin holds a bachelor's and a master of architecture degree from the University of Michigan, and is a licensed architect and real estate broker. He resides in Highland Park, Ill. and sits on Chicago's Near South Planning Board and the University of Michigan's Alfred Taubman College of Architecture and Urban Planning Real Estate Advisory Board.

Thursday, September 18, 2008

Hey Mr. Sandman: Recyling Flood Leftovers

During the recent flooding in the Midwest, the Army Corpos of Engineers said that 13.2 million sandbags to support the flood fight. 'The sandbags, if laid end-to-end, would span from San Francisco to Washington, D.C.," the Corps reported. Now that the floodwaters have receded, what is to be done with all that soggy (and in some cases contaminated)?

Hey Mr. Sandman: Recyling Flood Leftovers

In many cases they're being recycled. Around 200,000 bags from around Illinois' Sny Levee District were recycled at Mark Twain Lake where they were used to protect hydroelectric equipment at the Clarence Cannon Dam.

Similar sandbag levees are to be dismantled in Clarksville, Mo., where most sand removal will be contracted out According to Clarksville Mayor Jo Anne Smiley the town will give the sand away for fill at a local golf course, cement manufacturing or use by the county to dust icy roads in winter.

"It's economically wise to reuse the leftover sand," says spokesman Robert Anderson of the Corps' Mississippi Valley Division, though environmental concerns factor in. Sandbags may be tainted by sewage or chemicals, cautions the Corps' St. Louis District spokesman Alan Dooley. Bags become fragile and may deteriorate in sunlight, Dooley says. Clarksville is separating dry from soaked sandbags. Wet bags are considered contaminated and will be placed in land fills.

lIn in Canton, Mo., 600 cubic yards of wet sand will be covered by 12 inches of clean soil for a new park. Canton, population 2,557, estimates that that sandbag removal and levee repairs in the area will cost $176,200.

Tom Suter Creates Beauty “Up on the Roof”

"When this old world starts getting me down
And people are just too much for me to face
I climb way up to the top of the stairs
And all my cares just drift right into space
On the roof, it's peaceful as can be
And there the world below can't bother me..."

From the song "Up on the Roof" by Gerry Coffin and Carole King

In early July a dedication ceremony was held in an unlikely location: the rooftop of a two-story storefront at the corner of Marconi and Bischoff in the Hill neighborhood of the city. Attending was St. Louis Mayor Francis Slay. The roof was blessed by Father Vincent Bommarito of St. Ambrose Church. Holding court on a corner of the roof was Hill "royalty", Rich LoRusso of LoRusso's Cucina restaurant, which catered the event.

Tom Suter Creates Beauty “Up on the Roof”

So what brought Mayor Slay, Father Bommarito, and Rich LoRusso up on the roof? Sustainability, technology, and heck of a view all came into play. Tom Suter of Shield Systems, Inc. has transformed the building's roof into a garden with a sculpture, flowers, and herbs.

Suter has been an architectural representative in the St. Louis area for 30 years, specializing in moisture protection. His product lines include below-grade waterproofing, sealers for masonry and concrete, waterproofing systems for plaza decks and garden roofs, traffic membrane systems for concrete exposed to vehicular or pedestrian traffic and a full range of exterior and interior expansion joints.

About nine years ago Suter bought a boarded-up tavern in the Hill neighborhood. Doing much of the work himself, he has restored the building into offices for his own company, a salon, a caterer, and two apartments on the second floor. The rooftop garden was created as both a demonstration center for the green roof system developed by CETCO, a line that Suter reps, and as a tenant amenity.

The lightweight assembly allows the 2" X 12" roof timbers to carry five inches of lightweight growing medium. The first task in installing the green roof system was to remove the existing built-up roof and add decking to receive CETCO hot, rubberized, fluid-applied CETCO waterproofing. Ninety mils of hot rubber membrane was reinforced with scrim cloth. A second coat of hot rubber at 125 mils was then applied and a protection course was placed in the curing rubber.

To increase energy efficiency two inches of Dow Styrofoam was placed over the entire deck area. On the non-garden area, CETCO pedestals were then used to level the deck area. In the pathway areas, precise Wausau pavers were placed directly on the pedestals in a similar manner to that used for raised computer flooring.

On the garden sections of the roof a heavy polyethylene root block material was installed, followed by the Dow Styrofoam covered by a reinforced scrim to help with loading.
CETCO Aquadrain — an eggcrate-shaped material with cups that collect and store irrigation and rain water — was then placed on top of the scrim and covered with four inches of engineered soil, a lightweight material filled with organics.

Tom Suter Creates Beauty “Up on the Roof”

"From an educational viewpoint I wanted a living a garden and an exhibit to be able to show architects and owners CETCO Greenscapes roof systems," Suter said. "And I wanted my tenants to be able to enjoy the space."

Suter said that the both the commercial and residential tenants appreciate the views and quiet afforded by the garden. The herbs grown on the roof are used in preparing food for the catering business.

A plaque on the roof dedicates the garden to Suter's mother, Theresa Suter, who died a short time before the dedication ceremony.

Wednesday, September 17, 2008

CB Richard Ellis Lease and Sale Transactions

CB Richard Ellis, Inc. announced the following lease and sale transactions:

Jerry Gidlow, SIOR, represented Thompson Price Kitchen, Bath and Home LLC in leasing 5,000 square feet of retail space at 12101 Manchester
Road, West St. Louis County, from DDR Realty Company, represented by Tim Cherre of Sansone Group.

Marc Cacciarelli, SIOR, represented DJS Enterprises, Inc., in the sale of a 13,580-square-foot industrial building on 1.14 acres at 13539
Northwest Industrial Drive, North St. Louis County, to Dolph Properties, Inc., represented by Dan Johnson of Hilliker Corp.

Don Weis represented Brubaker & Associates, Inc. in leasing 12,145 square feet of office space at 16690 Swingley Ridge Road, Chesterfield,
from Dierbergs Office, Inc.

Richard Robinson represented TD Ameritrade, Inc., in leasing 3,203 square feet of retail space at 1628 Clarkson Road, Chesterfield, from
Chesterfield Oaks, LLC, represented by Capitol Realty.

Jeff Kaiser and Matt Aljets represented Hertz St. Louis One, LLC, in leasing 2,099 square feet of office space in the Laclede Gas Building,
720 Olive St., to Welk Resort Group, Inc., represented by Andrew Bagy of Grubb & Ellis|Gundaker Commercial.

Mark Hinchey represented Carelinc Options, LLC, in a 6,850- square-foot office lease renewal at 2127 Innerbelt Business Center Drive with the
lessor, Innerbelt Business Center, LLC.

Marc Cacciarelli, SIOR, represented Targee Westport, LLC, in the sale of two industrial buildings totaling 23,516 square feet at 2225 and
2253 Administration Drive, West St. Louis County, to South Tacoma Way, LLC, represented by Matt Hiatt .

Mark Hinchey represented Cabrera Services, Inc., in leasing 2,454 square feet of office space at 12747 Olive Blvd., West St. Louis County,
from BSP Golub Creve Coeur, LLC, represented by Tom Ray and Ann Dulle of CB Richard Ellis.

Mark Palmer and Jeff Kaiser represented John Hancock Life Insurance Company in leasing 3,315 square feet of office space at 16141
Swingley Ridge Road, West St. Louis County, from Emerald I, LLC, represented by Lynn Richter of Coldwell Banker Commercial CRA LLC.

Ann Dulle represented BMJ Partners, a Florida General Partnership in a 3,900-square-foot retail lease renewal at 4600 Chippewa St.,
with the lessee, ProRehab, PC.

Mark Palmer represented Mattson Jack Group, Inc., in a 15,540-square-foot office lease renewal at 11960 Westline Industrial Drive,
Maryland Heights, with the lessor, CUNA Mutual Life Insurance Co.

Don Woehle, SIOR, represented So Properties in leasing 2,918 square feet of office space at 612 N. 2nd St., to Kastner & Partners.
Mark Palmer and Ted Green represented Softchoice Corporation in leasing 10,822 square feet of office space in CityPlace Four,
Creve Coeur, from Cornerstone Opportunity Ventures, represented by Koman Group, LLC.

Don Woehle, SIOR, represented Downtown St. Louis Partnership in leasing 9,843 square feet of office space in the Laclede Gas
Building, 720 Olive St., from Hertz St. Louis One, LLC.

Tom Ray and Jeff Kaiser represented Wells Fargo Bank, N.A., in a 5,162-square-foot office lease renewal at 9666 Olive Blvd., Olivette, with
the lessee, Brown & Brown, Inc.

Mark Palmer and Jeff Kaiser represented Green, Cordonnier & House, LLP, in a 4,362-square-foot office lease renewal at 8000 Maryland Ave.
with the lessor, 8000 Maryland Avenue, LLC.

Extreme Home Makeover Helps Shrewsbury Family

One hundred and six hours — a little less than four and a half days— that's how long that John Shea of Fenton, MO and Dave Dunlap of Webster Groves,
along with hundreds of other volunteers, will have to demolish one house,build a new one in its place, and landscape the yard.

The reason for the lightning fast build is ABC's "Extreme Makeover: HomeEdition," the Emmy-winning reality television show about building new homes
for deserving families.

Shea, known as "Mr. Fix It" on KTRS radio (AM 550) is president of CallierThompson Shea Construction and Design. Named Remodeler of the Year in 2007
by the Home Builders Association, the company had revenues last year ofabout $3.5 million.

Shea got involved in the project after the television show's producers began making the rounds of radio stations in St. Louis to promote the project and
publicized their search for a builder. Shea said someone at KTRS suggestedto Conrad Ricketts, the executive producer of "Extreme Makeover: Home
Edition" that he talk to Shea, and he did.

The St. Louisans chosen for ABC's "Extreme Makeover Home Edition" are Dawn and Emmanuel Martirez of Shrewsbury.

Dawn is a pediatric cancer nurse. They have a daughter, Elle, and twin boys, Evan and Alec. Evan has an extremely rare genetic condition called 9P minus, and Alec has another uncommon genetic disorder known as Crouzon Syndrome. Both twins suffer from skeletal abnormalities that require extensive corrective facial and cranial surgeries, with Evan having physical handicaps and mental retardation and Alec being profoundly hearing impaired."

Dawn Martirez had to give up her job to take care of the twins full time. A statement released by the television show said: "As the boys get older, the home's cramped narrow hallways, steep stairs, crumbling driveway and single, handicapped inaccessible bathroom are posing great problems for them and slowing their development. Now it is up to Ty (Pennington) and his designers to equip the Martirez's home to accommodate the twins' special needs."

Shea said he was excited about the project, but he knew he needed help - "a project of this magnitude and timeline is a challenge for any company," he
said - so he turned to his old friend Dave Dunlap of Consolidated Construction Group Inc. "Once Dave knew it was for charity, he was on
board," Shea said.

"Both companies have been blessed and believe strongly in giving back," said Dunlap. "We believe our project motto, 'People, Passion, Purpose,' really
exemplifies what this project is all about and encourages everyone to getinvolved. Every dollar, piece of material and hour donated to this project
will make a difference."

Consolidated Construction Group is a nationally recognized, award-winning design-build remodeling firm; ranked highest in homeowner satisfaction among
all remodelers nationwide, according to NRS Corp.'s National Homeowner Satisfaction Study; and a member of Remodeling magazine's Big 50 Hall of
Fame in 1990.

On August 26, Shea, Dunlap, and Ricketts met with more than 420 prospective volunteers from over 100 contracting companies to discuss how the four-day
build will work. "It was all by word of mouth," Shea said.

For more information on the build and to find out how you can volunteer, please visit www.extremehomemakeoverstlouis.com or call 636-256-8906.

Tuesday, September 16, 2008

Hancock Elementary Undergoing $6 million Renovation

Demolition is nearly complete and construction has begun on the renovation of the Hancock Place Elementary campus, located at 9101 S. Broadway in Lemay.

The building that dates back to the 1970s is being remodeled and updated thanks to the patrons of the school district. Thisproject is the first phase of the $9 million dollar bond issue that was passed by the voters of Lemay on April 8, 2008.

The architectural firm of Wm. B. Ittner was responsible for the design of the elementary renovation and the C. Rallo Construction Co is
serving as the construction manager of the project. Upon completion the elementary school will be retrofitted with a new library, two new computer
labs, renovated classrooms and office space. In addition the heating and cooling systems, lighting, fire protection and security systems will be
upgraded. This is an extensive improvement to an aged building that serves more than 800 students and a staff of nearly 100 who will return at the
start of the school year on Sept. 2.

The project began when school was dismissed in late May and is well underway. "At this point everything is going as scheduled and we are pleased with the progress. The building will have a brand new look inside and will provide substantial improvements to the students learning environment," said Dr. Greg Clark, Superintendent. "It is going to be a busy summer but we are excited about the educational benefits the project will provide."

Cardinals Unveil New Targets for Ballpark Village

Cardinals Unveil New Targets for Ballpark Village

Battered by a shifting economy and tighter credit markets, 2008 turned into a rebuilding year for the Cardinals' plans for Ballpark Village in downtown St. Louis. On Wednesday, the Cardinals unveiled the outline of a new development agreement with the City of St. Louis that provides them with more flexibility as to what they will build.

Under the new plan, the Cardinals agree to build between 100,000 and 750,000 square feet of Class A office space, the first new office construction in downtown in two decades. Under the old agreement, the Cardinals committed to building 300,000 square feet of office space.

The retail component also has become cloudier. The existing plan called for constructing 300,000 square feet of retail space in Phase I. The new agreement gives the Cardinals a range to shoot for: 225,000 to 360,000 square feet.

The estimated cost of building Phase 1 has risen to $320 million from the previous estimate of $280 million. Although the percentage of the cost that the city and state are responsible for financing is decreased in the new agreement to 32 percent, the top amount of that commitment has increased by nearly $4.5 million to $102.4 million

The new plan also has a small residential component, 100 to 250 units, which would likely be built in Phase 2. The estimated cost of the total two-phase project also is given as a range in the new agreement: somewhere between $387 million and $600 million.

Cardinals' President Bill DeWitt and St. Louis Mayor Francis Slay commended Stifel Nicolaus for assisting in the negotiations that led to the new agreement. Stifel President Ron Kruszewski said, "We were charged with modifying the previous development agreement to give the development team more flexibility to respond to changing market conditions while also preserving the City's core principles. This new agreement accomplishes all of these goals."

Slay said he will recommend the new agreement for immediate approval to the Board of Estimate & Apportionment, the St. Louis Board of Aldermen, and the State of Missouri, a process that is expected to take eight to 10 months.

The off-again-on-again project has languished while mud and water accumulate in the hole at the old stadium site. The Cardinals hope that with this agreement the project will finally move forward. DeWitt announced that site work will begin shortly - an exact date is be announced in the coming weeks - to give developers a jump on the construction schedule pending approval by the Board of Aldermen and the Missouri Assembly. It also will give them a jump on the All Star Game, which will be played in St. Louis in July 2009.

Maintenance firm sues North Norfolk District Council for £104,000

A property maintenance firm wants North Norfolk District Council to pay it ВЈ104,000 for terminating a contract after accusing the firm of health and safety breaches.

Colchester firm Roalco is suing the council for not paying bills relating to repair and maintenance work on buildings, car parks and beach areas in North Norfolk.

The Essex firm completed dozens of jobs for the council, many under ВЈ5,000, from December 2006 and would also advise the authority when other works in the area were necessary.

But in a writ filed at the Technology and Construction Court, Roalco claim the council stopped paying invoices on 4 December 2007 and now owe it ВЈ104,000.

On 30 November 2007 the council wrote to Roalco alleging health and safety breaches on some of its work sites.
It terminated all contracts with the firm, although there were no express or implied terms that allowed it to.

In a letter to Roalco, the council said the payment of invoices would be withheld until it dealt with all the alleged breaches.

Roalco claim the council has paid only ВЈ246,571.49 of a ВЈ351,298.11 bill and is seeking payment plus interest.

Late submissions: CJP Builders -v- William Verry

The discretion of an adjudicator to extend time for submissions.

Summing up

The case: CJP Builders Limited -v- William Verry Limited [2008] EWHC 2025, 15 August 2008.

The issue: Discretion of adjudicator to extend time for submissions.

The implication: The adjudicator does have discretion to extend time for service of the response beyond the seven days provided by the adjudication rules within DOM/2 and generally has the discretion to determine his own procedure provided that he does so in a manner that enables the timetable for reaching the decision to be complied with. The adjudicator was wrong to exclude the response issued out of time.

The case

Adjudicators inevitably have to deal with requests from parties for more time in which to prepare submissions and they often have to decide what is to be done about submissions that are made later than the timescale required by the contract or as otherwise agreed or directed by the adjudicator.
Adjudication rules, including the Scheme, require the adjudicator to determine the procedure for the adjudication. The Scheme leaves it to the adjudicator to determine the entire procedure, whereas some rules provide a time period of seven or 14 days from the date of the referral within which the responding party is expected to serve its response.

One of the overriding principles of adjudication is that the procedure must comply with the rules of natural justice, namely that each party has a fair opportunity to make its case and to respond to that of the other. Further, in reaching his decision, the adjudicator is required to take account of the submissions of the parties. In addition, the adjudicator has to balance the requirement to follow a fair procedure with his duty to reach his decision on time.

The recent case of CJP Builders Ltd -v- William Verry Limited principally concerned the enforcement of an adjudicator's decision about the value of an interim application for payment.

Initially, the adjudication had proceeded on the basis that the applicable adjudication rules were those set out at clause 38A of the DOM/2 Conditions, which at clause 5.1.2 provides that the responding party may provide a response within seven days of the referral.

The referral was served on 2 May 2008. The adjudicator invited a response within seven days in accordance with clause 38A. Verry requested until 19 May 2008 to respond. CJP objected and the adjudicator confirmed his view that the contractual timescale of seven days had to be complied with and, significantly, that he did not consider that he had the power to go behind the contractual adjudication rule in clause 38. After further exchanges, CJP agreed to extend the time for the response three times, finally until 12 noon on 14 May 2008. The response was then issued by email five and a half hours late at 17.26 on 14 May 2008.

Agreed extension

CJP's solicitors then took the point that since CJP had not been prepared to agree to an extension beyond noon on 14 May and the adjudicator had no power to give relief, the response had been served out of time and consequently the response should therefore be entirely disregarded.

The adjudicator agreed, stating that he had no discretionary power to defeat the extended deadline allowed by CJP.

Verry then tried to argue by virtue of an ambiguity between different parts of the subcontract order that the TeCSA rules applied, which provided an unfettered right on the part of the adjudicator to decide the procedure.

In his decision, the adjudicator decided that the DOM/2 adjudication rules applied and he maintained that he was bound by the time provision in DOM2 as extended by CJP and he had no discretion to allow a later time for service. He confirmed that he would have allowed further time if he considered that he was not so bound. He found that the response was served out of time and then proceeded to reach his decision as to the value of the interim payment in favour of CJP, ignoring entirely the response from Verry.

Verry, of course, refused to pay the sum decided by the adjudicator, contending that there had been a breach of the rules of natural justice.

The judge decided that the adjudicator was wrong to have considered himself fettered by the timescale for the response within DOM/2. In summary, his reasons were that he found nothing in clause 38A that prevented the adjudicator from extending time clause 38A.2.5.5 requires the adjudicator to set his own procedure and it gives him the absolute discretion to ascertain the facts and the law, which the judge observed must include the right to extend time clause 5.1.2 states that the responding party "may" issue a response within seven days, which does not mean that it must, and there is nothing to say it cannot be issued later if the adjudicator agrees and very clear wording would be required to oust the general rule of natural justice that a party has a right to be heard and to have its submissions considered by the adjudicator.

The court therefore concluded that the adjudicator was wrong to exclude the response from his decision and to have done so was a material breach of the rules of natural justice, resulting in a decision that was not enforceable.

Monday, September 15, 2008

Is Commercial Construction Recession Bound?

by Peter Downs

The U.S. construction market is entering a recession from which it will not recover until 2010. That seems to be the consensus among prominent national construction economists.

Robert Murray, vice president of economic affairs for McGraw-Hill Construction, said new construction starts for 2008 will fall an estimated 11 percent to $558.5 billion. The commercial building market, which had grown in 2006 and 2007, started to lose momentum in the second quarter of 2008, he said. The market will fall back eight percent in dollar volume and 16 percent in square feet for the year, he said, with construction of stores and warehouses suffering the most. Single-family will follow a terrible year with an even worse one, he said, declining 28 percent in dollar volume and 31 percent in dwelling units for the year.

FMI has revised down its outlook for 2009 and expects nonresidential construction "to falter late in 2008 and into 2009." According to Heather Jones, construction economist for FMI's Research Services, total construction spending will fall four percent in 2008 and one percent in 2009. "The decline in 2009 will be driven by a decrease in nonresidential construction for the first time since 2003," she said.

Kermit Baker, chief economist for the American Institute of Architects (AIA), predicts a "dramatic drop" in nonresidential construction activity in 2009, especially in the office and retail sectors. The consensus forecast developed by the AIA foresees a 1.9 percent drop in inflation adjusted construction activity this year followed by a 6.7 percent drop in 2009.

"We've seen a dramatic contraction in design activity in recent months," Baker said. "Right now things are especially hard in the West and in the commercial and multifamily residential sectors. This weakness in design activity can be expected to produce a contraction in these construction sectors later this year and into 2009," he added.

"The one bit of good news is that this contraction in activity is likely to be considerably milder than the construction recessions of the early 1990's and earlier this decade," he said.

Baker cautioned that inflation could make the contraction worse than predicted. "The cost of construction materials has increased more than twice that of consumer products and services - up 37 percent versus 18 percent since 2004," he said, and that could hold back demand for new buildings.

"Surging prices for diesel fuel, asphalt, steel and other materials are clobbering construction budgets," said Ken Simonson, chief economist for The Associated General Contractors of America (AGC).

The PPI for inputs to construction industries--materials used in all types of construction plus items consumed by contractors, such as diesel fuel--surged 10.4 percent over the past 12 months. The index for highway and street construction leaped 18.9 percent.

"Bad as those figures sound, the increases in asphalt and steel costs have been even worse since these prices were collected in mid-June," Simonson said. "In the first two weeks of July, asphalt prices have jumped by 40 percent in several parts of the country. Prices for rebar--steel used to reinforce concrete in highways, bridges and buildings--soared $200 per ton."

In the futures markets, aluminum has been setting records, while natural gas has doubled in price from a year ago. That has triggered jumps in the cost of construction plastics--such as polyvinyl chloride pipe, insulation and flooring--that use natural gas as a feedstock.

"Unless Congress passes additional funding in the next few weeks to keep highway construction funds flowing, many states will stop awarding contracts," Simonson warned. "Other public agencies, as well as private owners, must adjust their budgets promptly to reflect the new price realities for construction," he said.

Associated Builders and Contractors (ABC) noted that job losses already are mounting in construction, an indication that activity has already started to slow.

According to Gerry Fritz, a spokesman for the ABC, the nonresidential construction sector lost 5,600 jobs in June; 29,100 jobs over the last six months, and 43,900 jobs since June 2007. Total construction employment, he said, is down 452,000 since June 2007, a decline of nearly six percent.

With developers faced with rising construction costs "the industry can expect far fewer nonresidential construction starts in the year ahead," he said The ABC, he added, "anticipates continued nonresidential construction job losses in the remaining months of 2008 and into 2009."

Ed Sullivan, chief economist of the Portland Cement Association (PCA), said construction already is in recession and he expects it will not rebound until 2010 as the economy "is being dragged down by high energy costs and weak employment fundamentals." Focusing on the home building industry, he predicted housing starts will fall 36 percent in 2008 compared to 2007, for a third straight year of declines. By then it should be near bottom and housing starts probably will fall only one more percent in 2009, he said.

The number of single-family home starts in June was at its lowest monthly level in 17 years, 64.5 percent below the peak of the building boom in January of 2006, according to the U.S. Department of Commerce. Home builders do not expect it to get any better any time soon.

"Builders are reporting that traffic of prospective buyers has fallen off substantially in recent months," said National Association of Home Builders (NAHB) Chief Economist David Seiders. "Given the systematic deterioration of job markets, rising energy costs and sinking home values aggravated by the rising tide of foreclosures, many prospective buyers have simply returned to the sidelines until conditions improve," he said. Builder confidence levels and sales outlooks in June hit their lowest marks ever in the Wells Fargo/NAHB Housing Market Index.

Construction economists aren't the only ones predicting recession, according to Kevin Kliesen, an economist at the Federal Reserve Bank of St. Louis. Writing in the July issue of The Regional Economist, he noted that, "Escalating oil price and commodity prices, a sharp contraction in the housing market, and financial market turbulence have increased the odds of recession this year, according to most forecasters."

Declare Your Independence From Chaos

By Michelle LaBrosse, PMP, Chief Cheetah, Cheetah Learning

It's easy to get caught up in the speed of our hectic lifestyles both at home and at work. If you're finding that stress and chaos is becoming the norm, it's time to transform the storm into calm.
Here are a few tips that I use to manage my stress and keep projects flowing in all aspects of my life.

1) Identify where the stress is coming from.
If you find yourself regularly saying, "I'm stressed," but not doing anything to change your environment or behavior, you may be running at full speed without thinking about where the stress is coming from. For example, are you saying, "yes" to everything and overloading your calendar? Are you working long hours without a break and feeling cheated because there is no personal time? Are you part of the sandwich generation caring for both your own children and your parents at the same time? Before you develop a plan, you need to pinpoint your key stressors.

2) Build a support team.
Many times, we get stressed because we've taken everything onto our own shoulders without asking for help and tapping into our support network. If you think of stress management as a project, your support team is the team helping you manage this project. When you look at the areas where you've identified your stress as coming from, this will help you pinpoint who are the people you need on your support team. They are probably already there for you, but you're not asking them for help. If your biggest stress is coming from work, think of a colleague, mentor or advocate who can talk you through it and help you come up with new strategies for approaching the challenge.

3) Catch your ZZZZ's.
While getting very little sleep may have been a badge of honor in college (or even in some companies), don't buy into this myth. Sleep deprivation reduces your concentration and overall effectiveness. It's difficult to come up with a sound solution or keep your cool on three hours of sleep. Try to go to sleep at the same time every night as much as possible. Let your brain cool down before you go to bed and separate from challenging work a few hours before you go to sleep. Also cut back on caffeine, alcohol, nicotine and sugar, which affect some people's sleeping patterns.

4) Find joy in exercise.
If you hate the gym, you're never going to go there. So, knowing that exercise is one of the great stress-busters, you need to find joy in exercise for yourself. Maybe it's as simple as taking a walk down a favorite street or road. You may get the yoga itch and fall in love with those stretches and poses. Whatever works for you, give your brain a boost, and take a break from both the computer and whatever is weighing heavily on your mind with a frequent exercise break that becomes a routine you cherish.

5) De-stress your environment.
Do you have the right balance of quiet time for concentration and interaction with key team-members or family members? Make sure your furniture (especially at work) is designed to support you and properly adjusted. Are you working in the right light, so you are not straining your eyes? Look at your environment and see what relaxes and comforts you and what causes you additional stress.

6) Break for relaxation.
You know that person that you admire because s/he is always at ease and seems like a Zen master? If you ask that person, how s/he does it, you'll usually unearth a couple of golden nuggets tucked away. I've always used deep-breathing techniques to relax me - especially when I'm getting ready for an important meeting. Meditation and imagery work well too. It's amazing how just five minutes of closing your eyes and going to your favorite beach or location will completely take you away and bring you back refreshed. In our classes, we incorporate breathing techniques, yoga stretches and relaxing music. Our students always tell us what a difference this made for them as they were studying and preparing for the PMP exam.

7) Make Fun a Part of your Life.
What is really fun for you, and more importantly, when was the last time you had fun? If fun is relegated to a handful of times a year, you need to make a commitment to enjoying yourself more and making that part of your Stress Management Plan.

8) Design your Stress-Less Management Plan.
Use the seven tips above to develop your Stress-Less Management Plan. These tips will help you get your ideas formulated and pinpoint what you need to work on to lower your stress level, increase your relaxation time and most importantly - have more fun with the people you love.
Now, put your computer to sleep for five minutes and visualize yourself in your favorite spot drinking a bottle of water and smiling. May your visions bring you peace, prosperity and the ability to create a stress-free space no matter where you are!

Michelle LaBrosse is the founder and Chief Cheetah of Cheetah Learning and author of Cheetah Negotiations and Cheetah Project Management.

Sunday, September 14, 2008

Nuns Tickled Pink Over KAI Job

KAI Design & Build has completed a 10,000-square-foot addition to the Mount Grace Convent at 1438 E. Warne Avenue in St. Louis, MO. The convent is home to the Holy Spirit Adoration Sisters, known as the "Pink Sisters" because of their unique rose-colored habits.

Established in St. Louis in 1928, the Mount Grace Convent is one of only 18 convents of the Holy Spirit Adoration Sisters in the world. KAI provided design/build, architecture and estimating/scheduling services on the $2.8 million project, which included demolition of the existing termite-damaged rectory and two adjacent residences, and construction of a new two-story addition, garage and 65-space parking lot. The lay office remained open and operational during the construction.

"The project started at $120,000 to simply replace the existing termite-damaged rectory," said KAI Project Manager Marcus Moomey. "Then, the Pink Sisters wanted to add three bedrooms for visitors and guests, as well as a kitchen, eight bedrooms for themselves and a basement. When the Mother Sister came from Germany to meet with KAI, she decided that all future international conferences would be held in St. Louis, so even more rooms were needed for the visiting sisters.

Eventually, the Pink Sisters decided to buy the adjacent lots and create a 65-space parking lot for special events." The new addition was constructed of load bearing masonry with precast floors and roofs. Special attention was given to matching the detailed brick and cut stone of the original convent. The project began in September 2006 and was completed in February 2008, on-time and within the sisters' new budget.

To help pay for the parking lot, the Pink Sisters held fundraisers and sold t-shirts.

By utilizing Building Information Modeling (BIM) software, KAI was able to provide the sisters with realistic images of what the new facility would look like before it was constructed. BIM also allowed KAI to closely monitor the material changes and construction estimates to keep the project within budget.

Antique Craft Techniques Makes Roads Safer

The City of Clayton, MO has turned back the clock to make its streets safer for pedestrians. At crosswalks throughout the city's central business district the city is installing a three-quarter inch overlay of BrickPrint from Traffic Calming USA to slow traffic and draw attention to where pedestrians cross.

The high-tech material in BrickPrint is installed using age-old work practices reminiscent of blacksmithing. Glyn Owen, vice president of operations for Traffic Calming, described the BrickPrint material as essentially molten brick. The material includes recycled glass, sand, and 25-30 percent granite stone flecks. Special equipment heats it to 400 degrees Fahrenheit to melt it.

The key to working with BrickPrint is the same as the key to working with iron: keeping it hot enough mold into shape. The installation crew from Traffic Calming use hot spreaders - thick metal rods with flat surfaces welded onto their ends - which they warm in a heat box under the blast of a propane torch, much like a blacksmith might heat his metal before working it. One worker fills a battered bucket with the molten BrickPrint material and pours a line of it across the crosswalk. Another worker grabs a hot spreader and uses it to smooth out the material. He has scant minutes to work before the material cools too much to work with it. As soon as the spreader cools, he trades it in for another hot one. As he finishes each line of material, the guy with the bucket pours another one. A third worker throws sand across the top of the material so a fourth worker can hand stamp a brick pattern into it with metal mold.

Owen said it takes about three hours to install a complete crosswalk. The material dries in one hour and comes with a three-year guarantee.

Bob Phillips, regional sales manager for Traffic Calming USA, said the material will not delaminate as did some thinner overlays applied in St. Louis in the 1980s. Since it goes on at 400 degrees, "it melts the layer of asphalt below it and bonds to it," he said. The color is mixed throughout the material so it will not wear off.

Phillips added that the company has different formulations for different climates to better resist both cracking and softening.

Midwest ASA Elects Officers

The Midwest Council, American Subcontractors Association ASA has voted in new officers and directors. The new officers and directors are as follows:

Michael Fogarty, Jr., Briner Electric, president; Jim Freeman, The Freeman Contracting Co. Inc., vice president; Chris Milne, Oreo & Botta Concrete, secretary; Mark O'Donnell, O'Donnell, Bonebrake & Company, treasurer; Tom McDonnell, George McDonnell & Sons, immediate past president.

Directors are A.J. Ford, Budrovich Contracting; Ken Bartels, Bartels Equipment; David Vaughn, Grant Contracting; Sandra Wilmoth, Midwest Marble & Granite; Vincent Irwin, Irwin Products; and Mike Heitkamp, Heitkamp Masonry

The American Subcontractor Association is a construction trade association of quality specialty contractors and supplier serving the construction industry and the community. Our purpose is to improve the construction process through active participation in education, legislation and cooperation

Lambert Launches Improvement Projects

Lambert-St. Louis International Airport officially kicked off the Airport Experience renovation program announcing the first projects underway
totaling $16.9 million in improvements.

The Airport Experience is a multi-phase program to modernize and upgrade the Main Terminal and concourses. The first Airport Experience project beginning in July is the interior restoration of Lambert's four historic domes. A complete replacement of Lambert's Main Terminal in-bound baggage system - at an estimated cost of $5 million - is scheduled to begin in early 2009. That
project will include all new carousels and oversize luggage retrieval systems. The six carousels will be replaced one at a time. The third project, also set for early 2009, is the makeover of Lambert's roadway signage program, expected to cost $1.5 million. This "Wayfinding" project involves creation of a master plan for all signs and the installation of all
new messaging to help travelers and airport users better navigate to andfrom Lambert.

Other projects within the renovation program will be phased in over the nextfive years.

Kwame Building Group is providing oversight, programming, design coordination and procurement, and will manage implementation of the "Airport
Experience Program." Other consultants selected for the project are:

•Teng & Associates, Inc.: Dome renovations design, Main Terminal ticketing hall and mid-level architectural renovations design; concourses architectural renovations design.

•Kozeny-Wagner, Inc.: In-bound conveyers and baggage claims design/build.

• Apple Designs, Inc.: Entrance monuments and wayfinding signage design.

•Burns and McDonnell: Main Terminal ticketing hall and mid-level mechanical, electrical, plumbing and special systems (MEPPS) renovations
design; concourses mechanical, electrical, plumbing and special systems (MEPSS) renovations design.

The schedule for installing many of those improvement will not be determined until designs are complete.

"We're proud to begin these much anticipated improvements after listening to our passengers, airport users and the community," said Richard Hrabko,
Director of Lambert-St. Louis International Airport. "In spite of these volatile and uncertain times in the travel industry, we currently have the
ability to begin the transformation of our historic facility while remaining fiscally responsible."

Hrabko added, however, that the health of the industry and the airport will determine when the addition projects move into construction.

"From the start, Lambert intended for the renovation program to proceed with
only those projects that deliver the most impact for airport users and/or to
improve airport operations. That continues to be our goal," he said. "As we
move through the design phase of the next projects, we will carefully
monitor our budget and the economic landscape of the airline and airport
industries to make sure the airport is financially secure before we proceed
with the construction of our next projects."

The $16 million facility renovation program is in addition to HMSHost's
agreement to invest $16 million ($13 million by 2011) to introduce more
local and upscale dining venues. Three new concepts are now under
construction in the Main Terminal. Local favorite, The Pasta House Co., will
open in the lower level in the fall of 2008. Brioche Dore Caf and
Missouri Vineyards, a new wine bar concept are scheduled to open in early
2009 in the Ticketing Hall of the Main Terminal.

Other new dining options could include Mosaics Tapas Fusion, which has been
named one of top restaurants in St. Louis; Fitz's Root Beer; Baja Fresh and
a new Freshns. The construction schedules and opening dates for those
venues will be determined at a later date.

Saturday, September 13, 2008

Coldwell Banker Announces Transactions

Coldwell Banker Commercial CRA LLC has announced the following new transactions:

Noel Fehr, CCIM, of Coldwell Banker Commercial represented Lewis & Clark Village Inc. in the purchase of a 5,319-square-foot retail building at 14784 Manchester Road, Ballwin, MO 63011, from Manco of St. Louis LLC d/b/a Manco LLC.

Carl Conceller, SIOR, and Jackie Quicksilver of Coldwell Banker Commercial represented Geraldine Deutsch Living Trust in the lease of 2,360 square feet of retail space at Willowbrook Shopping Center, 10483 Old Olive Street Road, Creve Coeur, MO 63141, to J. William Bradley d/b/a School Music USA, represented by Will Aschinger of Hilliker Corp.

Coldwell Banker Commercial represented FJP Enterprises LLC in the lease of 1,545 square feet of office space at Woodcrest Executive, 12101 Woodcrest Executive Drive, St. Louis, MO 63141, from BSP Golub Creve Coeur LLC, represented by CB Richard Ellis.

G. Timothy Lawlor of Coldwell Banker Commercial represented 39 Worthington Limited Partnership in the lease of 970 square feet of office space at 39 Worthington Access Drive, St. Louis, MO 63043, to Anton Realty Group LLC.

Carl Concellor, SIOR, and Jackie Quicksilver of Coldwell Banker Commercial represented Geraldine Deutsch Living Trust in the expansion of MEI Services Inc. d/b/a Pharma Life’s lease for 1,543 square feet of retail space at Willowbrook Shopping Center, 10479 and 10483 Old Olive Street Road, Creve Coeur, MO 63141.

Jaimie Lance of Coldwell Banker Commercial represented Worthington Associates LP in the renewal of Dominion Enterprises f/k/a Trader Publishing Co.’s lease for 2,938 square feet of industrial space at Security Plaza Building, 3-A/5 Worthington Access Drive, Maryland Heights, MO 63043.

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Jamestown Mall to be Reborn as Mixed-Use Center

Carlyle Development Group, the owner of Jamestown Mall in North County, has unveiled plans to convert the property from a traditional enclosed mall into a mixed-use commerce center where area residents can live, work, dine and shop.

“We're developing an economic driver for North County," said Thomas Fear, senior vice president of Carlyle Development Group, the firm that owns and is redeveloping the property. “Our goal is to restore energy to the mall and make it an exciting, fresh destination.”

The project master plan contains four phases with many significant changes taking place in its initial phase. One of the major components of Phase I is the conversion of the vacant 215,000 square-foot space, formerly occupied by Dillard’s department store, into back-office space. The plan also calls for the closing of 100,000 square feet of other retail space in the Dillard's wing. “The level of vacancies in that particular wing is detrimental to the overall success of the mall,” says Fear. “Our goal is to reinvigorate the property by bringing all of the retail occupants together in designated parts of the property while taking the excess retail space out of the picture.” The excess retail will be furloughed until it is the right time to lease it as traditional retail, service retail or ancillary office space.

Existing retailers in the Dillard’s wing will be relocated to the north and east wings of the property. This shift will increase occupancy in the mall and result in a more vibrant retail environment, Carlyle Group said. The estimated cost of the master plan is in excess of $120 million and is projected to commence in the first quarter of 2009. Carlyle Development Group is actively pursuing office tenants and is anticipating announcing newly signed tenants over the course of the next few months.

“The vacant square footage may never return to retail,” Fear noted. “It was time for some fresh thinking. Retail is no longer the sole driver for successful development. We analyzed the property and knew we had to change the mix.”

Future phases of the plan include The Residences at Coldwater Creek, a 200-unit, active adult and senior living community which will be located off of Old Jamestown Road and approximately 360,000 square feet of suburban low-rise office along Lindberg Boulevard (Highway 67). A small service retail component along Lindbergh Boulevard is also planned.

“North County needs a vision for the future,” says Michael O'Mara, councilman for St. Louis County's 4th District. “The redevelopment of Jamestown Mall is central to that vision.”

Olympic plant supply row heads for courts

A row over a ВЈ15m contract to supply plant to the 2012 Olympics site could end up in court.

John Reilly, boss of Rainham-based Nationwide Plant, is threatening legal action against Morrison Construction following a dispute over supplying machines to the Stratford site.

Reilly told CJ he had signed a deal with Morrison in September last year to act as the вЂNo 1 supplier’ for 25t excavators, 30t dumpers, and dozers for 12 months on a ВЈ150m Olympic remediation contract.

Reilly believed the deal was exclusive and would see Nationwide supply hundreds of machines to the site from January this year, making it worth between ВЈ15m and 20m.

But Nationwide has so far only been called on to supply a few dumpers and one dozer. It has not been called on to hire out any excavators to the site at all, despite investing around ВЈ4m in new kit.
After months of wrangling, Morrison offered Nationwide the chance to provide 33% of the hire business available at the site for dozers, 20t-30t excavators, and dump trucks, for the remainder of the 12-month period.

But Reilly has refused the deal and told CJ that he would now launch legal proceedings.

He said: “Morrison says it wants to move forward, but we can’t move forward and forget 10 months. The money that it is costing me on a daily basis is stupid.”

Morrison declined to comment.