Tall Order for Pumping Equipment
PUTZMEISTER PUMPS TO ASSIST IN CONSTRUCTION OF WORLD’S HIGHEST TOWER
Jonathan Omer,
Putzmeister, Sturtevant, WI
Putzmeister AG was recently awarded a contract with Universal Concrete Products, Ltd. Co. (UNIMIX) L.L.C. to assist in the construction of the tallest tower in the world – the Burj Dubai. Commencing this spring, Putzmeister pumping equipment will be instrumental in the high-rise placement of concrete for this prestigious project.
Originally, UNIMIX was sub-contracted to produce, supply, pump and place all of the estimated 327,000 cubic yards (250,000m3) of concrete for the tower. With the signing of the recent contract, UNIMIX will now undertake this over 1970-ft (600m) tall project in partnership with Putzmeister.
The two companies already have a long-standing history of successful projects completed together in Dubai. Large-scale projects completed through their joint efforts include the construction of the seven-star hotel Burj El Arab, the Emirate Towers, the Shangri-La Hotel and The Tower.
With its impressive height, the Burj Dubai is viewed as the focal point of downtown Dubai’s Development Design. The lofty vertical city tower will offer upscale commercial space, elegant cuisine and trendy entertainment establishments on the lower levels and extremely plush and luxurious residential accommodations on the upper floors.
At its anticipated height upon completion, the Burj Dubai will be about 300-ft taller than any existing structure or building under construction today. It will dwarf other structures in terms of technical accomplishment and design excellence.
During construction of the building’s infrastructure, the Putzmeister concrete pumps are expected to reach astounding delivery heights. Experts are therefore expecting that the world record in concrete highrise pumping will be broken at this spectacular building site. Construction of the building’s infrastructure will take approximately 36 months, and total construction costs for the project are estimated at over $8 billion.
The general contractor for construction of the high-rise complex is a joint venture comprising Samsung Corporation (South Korea), BESIX (Belgium) and Arabtec, a local construction company. Architectural design and planning will be provided by Skidmore, Owings & Merrill and Turner Construction International will manage the tower’s construction. The property developer financing the Burj Dubai Tower is Emaar Properties (Dubai).
The field of concrete building construction is rapidly changing, and its limits are constantly being tested and stretched. Obviously, to place concrete at such extreme heights, pumping must play a major role. Manufacturers are continually advancing technology to perform these high-reach concrete placement projects with greater efficiency. Technical aspects about the concrete delivery and equipment performance will be reported in more detail when the project commences.
Balmer Brothers Win CFA Basement of the Year Again
Jerry Balmer, President of Balmer Brothers Concrete Works, Inc. in Akron, Pennsylvania, knows what it’s like to build a basement from hell – he’s done it before. In 2000, Balmer Brothers was voted the winner of the Basement of the Year for their 29,000 square foot basement, which was complex as well as mammoth. This year’s winner was even bigger! This home in Gladwyne, Pennsylvania expanded over 34,000 square feet, which did not include the ninestall car garage.
Having worked on projects over 10,000 square feet numerous times before, Balmer Brothers is not a rookie at tackling complex foundations, and thus was selected for this project because of their reputation and experience. The winning structure boasts 2,210 linear feet of wall. Many of the walls were curved with curved window bucks and wells along with piers and offsets that were tangent to the curves.
“The curves, the various heights and the vast amount of steel, hundreds of fillers and vice grips, and miscellaneous equipment all made this foundation challenging,” explained Balmer.
Balmer Brothers continuously works hard to stay a step above the rest and the best way to do that is one foot at a time. For the project, the crew poured approximately 967 yards of concrete for the walls and concrete footings.
“Since it was a labor extensive job, we took it piece by piece and compared the cost to past jobs,” stated Balmer. However, this is one basement from hell that is not complete. Balmer Brothers will return to the project to pour the garden and terrace walls, the waterway for a moat – that’s right, a moat – and another three-stall car garage. What started as two brothers pouring sidewalks and curbs in the summer months in 1973 has become a successful company who has found a niche in upscale large, unique and complex foundations in the Philadelphia area.
The recipient of the Basement of the Year competition is selected by a peer vote during the annual World of Concrete. This project by Balmer Brothers was chosen from among six projects that met the criteria for judging. Contractors from across the country cast their votes in the CFA’s booth. The formal award presentation will be made at the Awards Banquet Luncheon during the CFA’s Annual Summer Meeting at the Hyatt Regency Hotel in San Francisco, California.
Balmer Brothers has been a member of the CFA since 1978, and Jerry Balmer was on the Board of Directors in the 1980’s. The CFA was established in 1974 for the purpose of improving the quality and acceptance of cast-in-place concrete foundations. The CFA works to improve member businesses and the industry through education, information, interaction and promotion of fair standards and business practices. The CFA provides promotional materials, educational seminars, networking opportunities, and technical meetings in 26 states and Canada. For more information about the CFA, please visit www.cfawalls.org or contact Talia J. Nelson at 866-232-9255.
Bontrager Concrete Specialties, Inc Named Contractor of the Year
Bontrager Concrete Specialties, Inc. of Nappanee, Indiana was named Contractor of the Year by the Concrete Foundations Association (CFA) based in Mount Vernon, Iowa. The Contractor of the Year Award recognizes an individual or company who exemplifies the ideals, goals, and standards of the CFA, a voluntary nonprofit organization dedicated to the advancement of the poured wall industry.
The award credits the Bontragers’ contributions to the industry through example, leadership, and performance. Bontrager Concrete Specialties, Inc. has been a member of the CFA for 15 years, and regularly submits projects in the Basement of the Year contest, which works to improve the quality of concrete walls and foundations as well as educate the industry about the accomplishments of using cast-in-place concrete construction.
The Bontragers are also leaders in their area. Bontrager Concrete specializes in foundations, flatwork, and waterproofing. Their family, starting with their father, has provided services to builders of the Nappanee and surrounding areas since 1965. Duane and Kevin officially took over the business in 1986, and their projects currently average 2,300 –2,500 square feet with some commercial work. Duane prides their company in giving that personal contact needed for a successful project.
“No matter how big or small, Kevin and I talk with the client and visit the jobsite,” stated Duane. “We are more concerned with quality than quantity.”
A formal award presentation will be made at the Awards Banquet Luncheon during the CFA’s Annual Summer Meeting at the Hyatt Regency Hotel in San Francisco, California. For more information about the CFA, please visit www.cfawalls.org or contact Talia Nelson at 866-CFA-WALL (232-9255).
CFA’s First Regional Meeting
It is hard to turn away from a recipe that works, but that is what we did for the recent Spring Board /Foundation Fundamentals program.
Brent Anderson has done a terrific job of educating contractors on the basic (and sometimes not so basic) engineering principles of foundation construction that we all should know. He has given this seminar in conjunction with every spring and fall CFA Board meeting for many years now, and we have no doubt that he will be back with many more in the near future. For the spring meeting held recently in Bloomington, Minnesota, we decided to do things a little differently.
Because the Minnesota chapter is the first and biggest chapter in the country, we decided to combine the board meeting there with a regional meeting, graciously hosted by the Minnesota Concrete Foundation Association. Since Brent is from the Minneapolis area and speaks often for the MCFA, we decided to give him a little break this time around.
Instead of one foundation seminar, Technical Director Jim Baty and MCFA Past President Troy Emerson worked diligently to develop an educational program that would benefit management and employees. Judging by the attendance and the buzz in the hotel on Saturday, the program was a big success. Both seminar rooms were filled, and extra chairs were brought in to accommodate overcrowding. Managers, employees, and even exhibitors spent the morning listening to well-educated speakers present topics such as the new ACI 332 code for residential concrete, OSHA Compliance & Inspections, Job Safety, Pumping Safety, and more.
Lunch provided an opportunity for the attendees to network and then visit the tradeshow room for dessert with the exhibitors. The afternoon commenced round table discussions about Safety Liability, Human Resources, Subcontract Agreements, and Form Theft. Employees went outside, where a crane was displayed, to learn about crane safety. The day concluded with a reception in the exhibit hall. The attendees once again filled the hall to learn about the products that our National Associates and Local Suppliers have to offer. I heard several contractors say it was a great opportunity for their employees to learn about all the products that are out there, not just the ones that they have gotten used to. I couldn’t agree more!
Again, I would like to thank all of our exhibitors for taking the time to participate. A special thanks to Carroll Distributing, Irving Equipment, Nox-Crete Products, Putzmeister, and Ulteig Engineers, for sponsoring the event. Without event sponsorships, we would not be able to provide the best quality meetings to our members. Another special thanks goes out to the MCFA for their great hospitality. I would also like to thank Mark and Roxanne Saldana and Schwing Pumps for the tours and receptions they gave the Board Members.
To all the great folks at MCFA, if you liked the event, sign up now for the summer meeting, it will be even better!
Terry Lavy, CFA President, Lavy Concrete Construction Inc. terry@lavyconcrete.comSummer Meeting in San Francisco
The 2005 CFA Summer Meeting,
our 30th Anniversary, is just around the corner. The CFA staff, Board of Directors, and committees involved in the planning of this event have implemented a host of changes to keep the event fresh, exciting, and fun.
The first change is the schedule. Classes will begin before the opening reception Thursday, July 6th. The golf outing was moved to Saturday morning so that golfers didn’t have to hurry, or worse yet be forced to make a decision on whether they would be late for the meeting or finish their round of golf. The golf outing has been growing every year due in part to the scramble or best-shot format. You don’t have to be a good golfer to participate – just willing to have fun. It doesn’t hurt, however, to have at least one experienced golfer in your group.
The second change is the educational format. There will still be seminars presented by Doug Staebler and others but we will be returning to the “round table” format for part of the educational forum this year. These interactive sessions were very popular when conducted in the past so we are bringing them back.
This is our first meeting in a major Metropolitan area since Milwaukee and Baltimore, which were both before my time (as executive director – not before I was born). We were able to negotiate a room rate of $145/night (plus taxes) at the Hyatt Embarcadaro, which is very low for a urban setting in this type of hotel. Try to book that same room on-line or direct and it will set you back $255/night. Make sure you mention the CFA room block when reserving.
Other things in the city center can be relatively expensive. Parking your car, for example, can set you back between $40 and $50 a day. If you arrive by air (or train) and need a car, we recommend you rent it only on the day or days you need it. There is a car rental desk located in the hotel. If you shop around, however, you can wine, dine, and travel for a reasonable sum.
Our location is great. The Hyatt Embarcadaro is across the street from the old restored Ferry Building, filled with shops and restaurants. The docks are still in use by the ferries – in fact, we board Saturday night’s harbor cruise ship at one of the docks. Step out of another door and you can jump on one of the famous Cable Cars. The terminus of one of the lines is directly in front of the hotel.
Both of the group extra events involve the sea. Friday night we board the USS Hornet, a World War II aircraft carrier. If you have never been on one (even if you have) you will be impressed. Tours will be conducted throughout the evening and we will have access to their “simulator” ride. The ship never leaves the dock but the experience is still dramatic. Saturday’s event is an evening harbor cruise. Relax, network, and enjoy San Francisco lights from the bay.
There are a number of great sights in San Francisco itself – the Presidio, Altatraz, Fisherman’s Wharf, the Golden Gate Bridge, and the Cable Car Museum to mention a few. If you want to leave the city, Muir Woods is a great spot to see the giant Redwoods. Napa and Sonoma valleys, where some of the best wines in the world are produced, are just an hour north of the city. Yosemite National Park and the Pacific coast are also great side trips.
This issue of our newsletter will provide details about the meeting and some of the opportunities that could make this a great family vacation. We have a limited number of rooms at the discount price so make your reservations early. I look forward to meeting you in San Francisco.
Ed Sauter, Executive Director, CFA esauter@cfawalls.orgCHBC to Hold Plant Tour
Have you ever wanted to tour a cement, a forms, and an expanded polystyrene manufacturing plants; as well as a quarry and state-of-the-art concrete homes?
If so, the opportunity awaits you. The Concrete Home Building Council, a council within the Building Systems Council of the National Association of Home Builders, has chosen residential concrete systems as the focus of their spring 2005 plant tour program. It will be held from June 26-28 in the Kansas City, Missouri area.
The event kicks off with a golf tournament on Sunday, June 26th. Registration is from 5:00 – 7:30 pm with an introductory reception from 6:00 – 7:30 pm. Monday’s tours include “Hunt Midwest Mining,” the world’s largest SubTropolis, created through the mining of a 270 million-year-old limestone deposit.
The next stop is the Lafarge cement manufacturing plant. Lafarge has North America’s most extensive network of cement distribution terminals and packaged product warehouses. A hands-on demonstration of stamping and staining follows at the Concrete Materials Company. The day’s tours end with hands-on homescaping demos using concrete pavers and segmental retaining walls at Miller Material Company located in Kansas City, Kansas. The day ends with a banquet.
Tuesday’s tours begin with Coutour Products located in Kansas City, Kansas. Contour represents a group of innovative expanded polystyrene (EPS) foam products. The manufacturing process for ICF’s is highlighted. The plant tour is followed by a visit to an ICF subdivision where the process of building ICF homes can be viewed. The third visit is the manufacturing facility of Wall-Ties & Forms. Wall-Ties’ robotic manufacturing systems is demonstrated along with a tour of the plant. Following the plant tour the group visits a subdivision constructed with Western Forms removable, reusable forms. The evening ends with a reception at the concrete home of Ross Worley, a state-of-the-art 6,000 square foot home. Buses have been arranged for all of the tours and each day kicks off with a Concrete Basics Breakfast.
A block of rooms is set aside at the Hyatt Regency Crown Center located at 2345 McGee Street, Kansas City, Missouri. A rate of $125 for a single or double has been negotiated. Make reservations through the Hyatt reservation system at 816-421-1234 or 800-233-1234. Reference the NAHB/Concrete Home Building Council to take advantage of the special rates. The cutoff date for reservations is June 1, 2005. You can register for the event on-line at www.nahb.org/concretetour or via fax or mail (call CFA for registration forms). The cost before March 11 is $275 for NAHB members and $375 for non-members. The prices increase $100 for each category after March 11 and the golf outing is separate ($80.00).
CHC Attends the 2005 International Builders Show
The Concrete Homes Council (CHC) exhibited at the National Association for Home Builder’s International Builders Show held in Orlando, Florida, January 13-16, 2005. With 104, 922 attendees and more than 880, 000 net square fee of exhibits, it was the largest Builders Show yet and the world’s largest residential construction expo for the their consecutive year. This was the third year that the CHC has exhibited.
Concrete Paradise
By Wendy Shannon, Shannon & Company
I’ve traveled many times to the Florida Keys for rest and relaxation, but this time I was flying in to meet with the developer and the design architect of SeaSide Key West, a highend residential project constructed entirely of concrete. Towards the end of the 90-minute direct flight from Atlanta to Key West, I glanced down and actually caught a glimpse of these beautiful contemporary “conch” town homes gracing the coastline of the Atlantic Ocean. As we landed, I prepared myself to visit what may be the last mixed-use residential development that will be built in this bit of paradise.
At the southernmost tip of the United States, only 90 miles from Cuba, Key West is the last in a chain of islands extending 150 miles southwest from Miami. These islands have long been a prime destination for travelers from around the world. Sport and flats fishing, reef and wreck diving, yachting and international boat racing attract thousands throughout the year and cultural opportunities abound. And with an average annual temperature of 77 degrees, which rarely varies more than 10 degrees in either direction, the weather is ideal.
After I exited the airport, I hailed a flamingo-pink taxi and headed for SeaSide. As we traveled up South Roosevelt Drive, I took in the view—clear blue water and graceful palm trees. Within minutes, we turned onto SeaSide Drive and passed through the entrance where I was greeted by SeaSide’s developer Robert “Bob” Butler and Steve Johnson, the project’s design architect. Both are with Key West SeaSide, LLC, a subsidiary of The Argonaut Group, a major development company known for creating outstanding communities throughout Florida. Butler was wearing a traditional suit and tie while Johnson donned shorts and sandals, Key West’s “official” corporate attire. I immediately sensed that this seemingly “odd couple” team would have a positive impact on the project.
Together the three of us explored this exclusive community, destined to be the largest planned development in the Keys. The town homes are clustered on roughly 16 acres of a 64-acre parcel that Butler acquired in 1986. Six acres within the development’s core area have been reserved as natural areas.
SeaSide Drive divides the northern and southern sections of the community. Each section has its own entry, swimming pool and pool house. The luxurious concrete pools are each approximately 1,200 square feet, six feet deep and surrounded with concrete decking finished with brick pavers. A community clubhouse is adjacent to the southern section’s pool and boasts an owner’s lounge, library, fully equipped exercise room and management office. While the project was still a work in progress during my visit, I could see a tropical paradise emerging replete with Caribbean influenced landscaping and extensive accent lighting.
“I think the four-story, fee simple town house overlooking the ocean will prove to be a most unique property in Key West,” explained Butler. Typically buyers interested in Key West properties can select an aged “conch” house or condominium with little yard space and even less room for parking. SeaSide’s contemporary “conch” town homes offer a fenced rear yard and a fully enclosed two-car garage, amenities virtually unheard of on the island. Residents will also have community retail within convenient walking distance. From many vantage points in the three- and four-story homes, residents will enjoy spectacular views of the ocean or the island.
Potential homeowners will be pleased with design functionality and quality of construction found in the SeaSide homes and they will find them as impressive as any gracing the cover of Architectural Digest. With open, flexible floor plans, private elevators, multiple decks, and high-end amenities galore, these homes are elegant and refined. Room heights add to the feeling of luxury with ceilings in living areas vaulting to 12 feet. Each kitchen is outfitted with top-of-the-line GE appliances, and the baths feature oversized whirlpool tubs, glass-enclosed showers and Kohler fixtures.
After touring SeaSide, we traveled the ten-minute drive towards the heart of Key West and dined on the porch of Louie’s Backyard, a local restaurant with fabulous regional cuisine. As we finished lunch, we enjoyed the relaxed atmosphere prevalent throughout the Florida Keys, and further discussed the SeaSide project.
Butler explained that the opportunity to own a coastal town home on Key West is rare and, therefore, very appealing to many upper-end homebuyers. Large tracts of land suited for residential development is scarce, and what development there is, is carefully monitored. Much of the oceanfront land is owned by the federal government, which uses the property for Naval Air Stations. And strict evacuation ordinances exist on all the islands, adding further building constraints. A seasoned developer, Butler knew that if he ever had the chance to build along the coastline of Key West, it would be a prospect too good to pass up.
Having developed many communities throughout Florida and beyond, Butler and Johnson recognized the challenges facing homeowners in that region and strived to build disaster-and insect-resistant, energy efficient and low maintenance town homes. To meet those goals, the team selected the time-honored material of concrete. From previous experience, they knew that concrete would yield rock-solid, environmentally responsible town homes of distinction and comfort. They were also confident that homebuyers would value the benefits of reduced ownership costs, insurance premiums, monthly utility bills and noise. “And we think that SeaSide residents will be particularly appreciative of the peace and quiet that concrete offers in a town home setting,” Johnson explained.
Once the team decided to use concrete, going with Outinord Universal, Inc.’s tunnelforming system was a given. In Key West, The Argonaut Group and/or its affiliates had already built four other phases of the SeaSide community, each time employing Outinord’s construction system. “We chose to go with Outinord tunnelforms for their ease of use, the speed with which we can pour concrete and the quality of the finished product it delivers,” said Butler.
In the early 1980’s, an Argonaut affiliate designed, developed and completed the Ocean Key Resort at the end of Duval Street, using conventional construction methods. The team quickly discovered that construction on an island, 150 miles from the mainland, was more than challenging. The remote location caused substantial time delays, consistently overrun budgets and incomplete subcontracts.
Shortly thereafter, the group began construction on the Ocean Walk Apartments complex and was determined to find a better way of building. Outinord provided specific time and output estimates that their tunnelform technology would deliver. Their estimates proved to be accurate, enabling the entire project to stay on schedule. “We delivered the first building in seven and one-half months, which was unheard of in Key West construction history,” stated Butler.
During the construction of Ocean Walk, Butler continued to see the benefits of using Outinord’s building system. The aggregates needed to make concrete were readily available on the islands, dramatically cutting down transportation costs of construction materials. And the opportunity to eliminate furring and drywall of the structural walls proved to be a significant savings. Argonaut has continued to use Outinord’s concrete forming system for every other construction project in the Keys and has plans to use the system in mainland projects, including a large-scale residential project in Charlotte, North Carolina.
Michael Taylor, president of Current Builders, Inc., of Pompano, Florida has managed SeaSide’s construction process. While this is their first project in the Keys, Current Builders are by no means strangers to construction in southern Florida or to Outinord’s tunnelforming system. They have also used the tunnelform concrete construction method to pour concrete shells in two other Florida projects, Heron Cove Apartments in Naples, Florida and Heron Pond Apartments in Lehigh Acres, Florida.
“Being able to pour walls and ceilings in one monolithic pour allows work to be scheduled in a very precise and timely manner,” stated Taylor. “This allows us to keep our subcontracted labor on pace and speed up the entire process.” Designed to cast load bearing walls and slab in a single pour, Outinord tunnelforms are especially well-suited to the construction of multiple residential dwellings. On the SeaSide project they were able to pour almost two units a day, on average. That’s roughly the equivalent of 5,000 square feet per day.
In addition to its cost-effectiveness, durability, and ease of transport, Outinord’s tunnelforming system readily accommodates door and window openings, plumbing, electric and built-in embeds. The finished product offers a superb concrete finish with perfect wall alignment and a structure that is dimensionally accurate to 1/32″ (1mm). The system is also flexible enough to adapt to any existing building plans and lends itself to inventive architectural design ideas.
For a short time, Butler and Johnson actually considered going with conventional masonry block with the SeaSide project, as they were assured that the costs would prove comparable to Outinord’s. However, as the project commenced, subcontractor bids and other costs exceeded the intended budget by nearly $8 million, or almost 50%. “We immediately changed the structural system to Outinord’s tunnelforming system,” said Butler. “The result has been reducing costs back to the original budget—and a better quality product.”
The entire SeaSide community contains 1,050 units, with completion of the last 96 units scheduled for December 2004. Of the 96 units priced to $1,750,000 ($600 per A/C sq. foot), only four units remain unsold. That’s quite an endorsement.
As I left Key West for home, I found myself enthralled with the wonders of concrete. Once again, it was proven to me that the beauty, longevity and overall quality of construction available with this time-honored material, is a worthy investment for developer, builder, homebuyer alike. There are very few places in the world like the Keys. There are even fewer places that can offer the serenity, security and stability to those seeking to their own luxury get-away. I learned that SeaSide Key West is such a place. And, as a potential homebuyer myself, I was glad to discover that a slice of paradise is within reach.
This article was reprinted from Concrete Homes Magazine.Concrete Not a Key Factor in Home Building Cost Increases
During the past year the cost of materials needed to build a single family home has escalated significantly. A July survey performed by the National Association of Home Builders (NAHB) estimates these increases at $5000 to $7000 per new home.
As the use of concrete has grown cement shortages have surfaced in a number of states. Some have concluded that concrete price increases are a principal contributor to the escalation in home material cost increases. In reality, despite shortage conditions concrete prices have increased modestly and are not an important factor in overall single family material cost increases. Material specifiers frequently have to choose between concrete and alternative building materials. This is an effort to provide specifiers accurate information about concrete cost increases as they relate to single family construction activity as represented in the NAHB report.
POINT 1:
Concrete accounts for a relatively small portion of overall construction costs for a new home. According to NAHB estimates, the average single family home built in 2003 was 2,347 square feet in size. Base on NAHB estimates, roughly 76 cubic yards of concrete is required to build the average single family home. While PCA calculations of cement and concrete usage per single family home are slightly higher, NAHB estimates have been used to maintain consistency between reports. Using NAHB concrete volume, at 2003 prices this translates into roughly $6,500 per home in concrete costs. Concrete costs represent slightly more than 4% of estimated overall home construction costs and less than two and one half percent of the price of a new home on the market estimated by the Bureau of Census at $274,200.
POINT 2:
Despite tight market conditions in some states, concrete price increases during 2004 have been modest.
According to the Bureau of Labor Statistics (BLS), the government’s authoritative source for producer price assessments, concrete prices stood only 4.6% higher than the year earlier levels reported at the time of the NAHB report. While price increases per cubic yard of concrete have continued since the time of the NAHB report, the increases per cubic yard of concrete have continued since the time of the NAHB report, the increases have lumber. Year-to-date through October, the producer price index for concrete has increased 8.4%
POINT 3:
Concrete price increases contributed a meager $283 of NAHB’s $5,000 to $7,000 total cost increase estimate.
By combining NAHB cement usage per single family home with BLS producer price indices as well as a base concrete price, 2004 concrete cost increases per single family home can be estimated. Using the same time frame as the NAHB study, concrete costs associated with the construction of a typical single family home has increased from $6,440 to $6,732 – a meager $283 increase per home, that accounts for only 5.7% of NAHB’s cost increase estimate. Since the NAHB report, tight market conditions have characterized the concrete industry – prompting further increases in the cost of concrete. Even when these subsequent increases are considered, concrete cost increases have resulted in roughly a $399 cost increase per single family home during 2004.
POINT 4:
Other materials account for a significant portion of material cost increases.
Among the largest building material components for single family construction is lumber, accounting for roughly one-third of the total material costs according to NAHB. On average, building a new single family home requires nearly 17,400 board feet of lumber 7,100 board feet of structural wood panels such as plywood.
During the past year lumber prices have increased 26.2% from year ago levels. Strong demand conditions originating from low mortgage rates and robust single family construction, tariffs on Canadian lumber restrictions against harvesting from federal lands have all contributed to the increase in lumber prices.
Combining lumber price increases with the board feet of lumber required to build a new home yields an estimate of total new home lumber costs. At 2003 prices, lumber costs for the average new home construction equaled $10,900. With lumber price escalation, the current cost now stands at roughly $14, 600, accounting for more than half of NAHB’s estimated $7,000 building material cost increase.
Aside from concrete and lumber, building a new home requires a multitude of other materials. Steel reinforcing bars, gypsum, copper tubing, plastic plumbing products have all recorded double-digit annual increases compared to year-ago levels. These building materials, as well as other construction products have contributed to the cost increase in single family construction.
POINT 5:
Over the past four years, concrete price increases have only kept pace with inflation.
Concrete prices stand only 11.1% higher than 2000 levels- a remarkable statement in price stability during a four-year period. In contrast, overall US inflation, which has been quite tame by historical standards, increased the consumer price index by 11.0% during the same four-year period. Discounting for inflation, concrete has experienced a real price increase of 0.1 % during the past four years.
Concrete price stability has not been lost on material specifiers that must choose between concrete and alternative building materials and has contributed to the growth in concrete usage. During the past 18 months, prices for competing materials such as steel have increased dramatically. This improved competitive price position of concrete and has resulted in increased demand on concrete. This phenomenon is partially responsible for heightened demand for concrete and a contributor to the cement shortage conditions that have surfaced in some regions of the United States.
This article was reprinted from the Portland Cement Association’s The Monitor: Flash Report, January 11, 2005. PCA Contact: Ed Sullivan, Staff Vice President & Chief Economist, 847-972-9006.
CFA Board Update
Board meetings at the World of Concrete are always a busy affair with so many competing activities. The CFA board, however, tackled a host of initiatives and topics, several of which will result in additional member benefits and services. They are highlighted below.
CFA CONSIDERS SAFETY PROGRAM
A presentation on safety programs was made by Devon Dickson, president of Safety Services Company of Corona, California. Dickson’s company provides a wide variety of safety related materials and programs. Included are a series of tool box talk topics, customized safety manuals, and other related services. Safety Services is willing to develop custom topics specific to the poured wall foundation industry with information provided by members. Safety Services currently has over 250 Tailgate/Toolbox Safety Meeting topics developed. Under the program, they would send a package with four topics each month for use by participating companies. Spanish translations of the materials are available at no additional charge. The Toolbox portion of the program currently sells for $156 plus shipping per year but CFA members would receive a substantial discount if they participate in the program. Details of participation, billing, and actual discounts will be worked out with an AdHoc Safety Committee consisting of Mark Saldana, Mark Latorre, and Mark Markovich and Safety Services representatives.
RETAINING WALL PROGRAM
The board approved entering into an agreement with CEC engineers for development of a CFA interface for their on-line retaining wall program. The program, like the on-line foundation wall program, was developed; however, a user friendly interface – to allow CFA members to use the program online through a web browser – needs to be developed. When the system is in place, members will be able to go on-line and design the size, reinforcement, and other parameters for a retaining wall, similar to the way they can currently design foundation walls. If an engineer’s stamp is needed, CEC will provide it for a very reasonable fee in states they are registered.
NEW CFA POWERPOINT PRESENTATION
Management was given approval to develop a new CFA PowerPoint presentation for its members to use when making presentations to builders and owners. It will focus on the benefits of poured-in-place walls but will also address the reasons why poured-in-place walls are better than alternative methods of construction, most notably concrete masonry. The current presentation is somewhat outdated in its graphics. The presentation will be customizable by members so they can include photos of their own systems, processes, and projects if desired.
LOWER LEVEL LIVING BROCHURE UPDATE – FUTURE UPDATES COMING
The new Lower Level Living brochure has hit the market. It is the most “upscale” marketing piece produced to-date by the Association. It is an eight-page flyer with fold-out center pages so the entire piece measures 11” x 34” when fully opened. It takes the place of the older version. This should prove valuable for use in selling builders of the possibilities of converting that basement into relatively inexpensive additional living space.
The marketing committee is also working on a technical piece that will replace the tri-fold brochures.
WEB SITE – PROCEEDING
The board authorized a redesign of the CFA website. The existing site has had minor improvements but a total new look and navigation system is in order. As members, and the general public, begin to use cfawalls.org more we need to maintain a fresh appearance, up-to-date information and efficient organization.
New features of the site include a greatly expanded section for National Associates known as the Products and Services Directory, more seamless integration of the CFA database with the website and secure transactions. One of the more confusing aspects of interacting with our website has been the presence of two domains, cfawalls.org and secure.sauterbaty.com. This update will add a secure domain to cfawalls.org making it the exclusive site for CFA business and database reference. The new site should be up and running by the middle of the year.
