Boise Activity Report

Gem State Remains Optimistic that Commercial Market Will Stay Vibrant

Work is abundant on various types of projects; BSU has a flurry of activity happening right now; AGC’s new headquarters is getting close to completion.

By Joe Evancho

Across the Treasure Valley, commercial construction progressed with minimal delays during the winter, and Mark Dunham, the Idaho Associated General Contractor’s new executive director, is predicting a 2-4% increase in commercial work this year.

Future growth above that will be depend on what the Legislature does with GARVEE Bonding and other transportation funding proposed by Gov. Butch Otter.

Public school and university construction projects continue to move along with several projects well under way. The new AGC headquarters in Boise is projected for completion later this spring. And the ongoing Idaho State Capitol renovation is the most visible construction project in the region.

AGC Membership Growth

The new AGC Headquarters is getting ready for interior work.

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Randy Steed of Steed Construction Inc. of Eagle, who served as president last year, says the AGC has been served well by the current building that was built more than 40 years ago.

“With the growth the association has experienced during the past 10 years and the addition of several new services and increased parking needs, a modern facility was needed,” Steed says.

Current president Pat McEntee of Central Paving Co. Inc. of Boise, agrees that the association has simply outgrown its building.

“We’ve needed a new building for some time now, so this is going to be a real advantage for us as an association,” says McEntee.

Laurie Kaufman, AGC membership director, says the association is growing by 20 to 25 new members a month. She says new members are utilizing the AGC plan rooms statewide, and residential builders are trying to break into commercial building because their segment has dropped.

Kaufman says that right now membership is at an all-time high of 116 general contractors with more than 1,100 total members.

The Idaho chapter is the sixth-largest chapter in the nation with a retention rate of about 87%, Kaufman adds.

Labor Demands

McEntee says that because of growth in the Treasure Valley, demand for skilled and qualified labor has been high.

Steed adds that the need for reliable trained craftspeople is, and has been, a growing problem for commercial construction, not only in Idaho but nationwide.

“Young people entering the job market do not see construction trades as viable or attractive options for their future,” Steed says. “And experienced craftsmen across the industry are retiring at an alarming rate. Idaho is no exception to the crisis and Idaho’s wages are lower than many regions.”

He says productivity is low in most trades and there is no formalized training for trade personal. One bright spot is the slowdown in the residential construction market, which has driven some talented workers from their homebuilding back into the commercial market, Steed says.

He adds that the change may be short-lived unless the commercial industry can provide attractive wages and benefits to keep workers happy.

Material Issues

Along with other demands, material supplies and costs are also affecting local contractors.

McEntee says his paving company has seen oil topping out at more than $100 a barrel and he does not foresee any major price reduction. He adds that there may be shortages by mid-June, increasing the price of asphalt as well as transportation costs.

Steed says the cost of labor and material has been relatively flat for the last decade, but that has changed. “This has been caused by an increase in demand, especially in Asian markets, the pace of residential construction, the shortage of semiprecious metals (copper and aluminum) and the increased cost of oil, which also affects plastics and roofing material,” Steed adds.

“But the cost of some material, primarily in the residential market (wood) has gone down. We bid a church recently and saw the cost drop approximately 10%in one year.”

Building Activity

John Emery, project manager for Jacobson-Hunt at the Capitol renovation project, says the job is Idaho’s first contractor-at-risk construction contract. “We are managing this project for a guaranteed total dollar amount,” Emery says.

The project was originally scheduled to have two levels of underground wings, but after suspension of work by the governor a compromise was made to have a single level of underground wings.

“That slid the entire design package back by several months, but the construction schedule remained the same,” Emery says. “We’ve been compressed and now we're working hand-in-hand with the architect and owner to get designs finalized.

“We want to restore the architectural integrity of the building while providing a new and modern facility. The project is both renovation and restoration.”

The whole building is being rewired to modern standards. The preservation areas will have the original doors and hardware to make it as historically accurate as possible. “We will use the original light fixtures, for example,” Emery says.

Public School Construction

The public school projects are the result of a $94 million bond that was passed by Boise voters in March 2006.

The Boise School District broke ground in February 2007 on the long-planned $6.2 million expansion of the main gymnasium at Borah High School. Since then, construction has started on more than seven construction or expansion projects across the BSD.
The projects include East Junior High, Morley Nelson Elementary, Grace Jordan Elementary, West Junior High, South Junior High and Frank Church Junior High.

BSU Campus

Three major projects are under way at Boise State University. The new $24.6 million Student Union Building will add 67,000 sq. ft. to the concurrently renovated 27,000 sq. ft. of the existing SUB. Completion is scheduled for May 2009.

The new 83,000-sq. ft. Sky Box at Bronco Stadium is scheduled for completion for the start of the 2008 football season. The three-story addition will offer top-quality facilities for fans and national and local media. This facility will also be leased throughout the year for conferences, receptions, dances and weddings.

The four-story, $25 million College of Health Sciences and the Health, Wellness and Counseling Services Building is scheduled for completion in fall 2009.

BOI Air Terminal Air Traffic Control Tower

Construction of a new air traffic control tower at the Boise Airport began with groundbreaking in December and is scheduled for completion in fall 2009. Total cost of the tower with electronics is $28 million.

The control tower will stand 290 ft. tall and will be the tallest structure in the state of Idaho. The tower cab is located at 254 ft. high, and will contain 550 sq. ft. and five air traffic controller positions.

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