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Carolina News - September 2007

Residential Fuels Drop in N.C., S.C., Activity

Led mostly by major declines in the residential sector, the value of new contracts signed in July for future construction activity fell by 4% in North Carolina and by 17% in South Carolina, compared to the same period of a year ago, McGraw-Hill Construction reported.

In North Carolina, the value of new starts totaled roughly $1.8 billion for the month. The residential sector declined by 14% during the month for a nearly $1.2 billion total. The other categories were positive, however. Nonresidential contracts jumped 23% to total $536.2 million for the month, while the nonbuilding sector improved by 18% compared to last July to tally nearly $113.6 million.

Through the first seven months of the year, North Carolina contract activity is 2% behind 2006’s pace, with a total of about $15.1 billion in new starts so far. The nonresidential category, at nearly $4.2 billion, is 21% ahead of ‘06, while the residential market is 9% behind last year with a $9.5 billion total. The nonbuilding sector is now 1% ahead of last year’s pace, with nearly $1.4 billion in new project starts so far.

Meanwhile, South Carolina contract activity totaled approximately $722.1 million in July, or about 17% lower than a year ago. The value of new residential contracts totaled about $470 million, 23% below last July’s figure. Activity in the nonresidential category was off by 9% compared to last year, and tallied $165.8 million. The value of nonbuilding contracts improved by 8% compared to last July to total about $86.3 million.

For the year-to-date, South Carolina construction is an estimated 18% behind the 2006 pace, with new contracts totaling $6.6 billion. The residential category, with its $4.2 billion tally, is about 21% behind the 2006 pace. Nonresidential, at about $1.6 billion, is 17% behind last year’s pace. The nonbuilding sector, at about $806.5 million, is 4% ahead.

HDR Hired for $90M Treatment Plant Expansion

Charlotte-Mecklenburg Utilities has selected HDR to conduct planning and preliminary design of the expansion of the Sugar Creek wastewater treatment plant from a permitted capacity of 20 million gallons per day to 28 mgd, with provisions to expand to 34 mgd or more in the near future. The plant was originally built in 1927, and has undergone several upgrades and expansions.

Goals for the expansion include developing a master plan for the Sugar Creek site to ensure an optimum balance among the need for future wastewater treatment facilities and incorporation of sustainable design initiatives.

The upgrade will be one of the largest water/sewer projects ever undertaken by Charlotte-Mecklenburg, with an estimated cost of $90 million. Proposed improvements are currently scheduled to be online in 2012

BE&K Lands $71 Million Mount Pleasant Hospital Contract

Charlotte-based BE&K Building Group was awarded a $71 million contract to provide preconstruction and construction services for a 200,000-sq-ft hospital and three-story, 66,000-sq-ft medical office building for Roper St. Francis Healthcare in Mount Pleasant, S.C., near Charleston.

According to BE&K, the 85-bed Mount Pleasant Hospital component will include a remote-control energy plant; an emergency care department with 12 exam rooms; a dedicated women’s services area with labor and delivery suites; a nursery; inpatient and outpatient surgery; intensive and critical care services; a six-room cardiac-care unit; and imaging, laboratory and pharmacy areas.

The architect for the project is FreemanWhite. Groundbreaking is projected for early 2008, with completion currently anticipated for mid-2010.

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