Steel pricing: what can you do?
It’s important for specialty steel contractors to focus not on the differences between current steel prices and last year’s prices, but instead to compare steel prices with those of competing systems, according to John Cross, Vice President of American Institute of Steel Construction (AISC) Marketing LLC. Cross spoke as part of a program on Steel Pricing at the recent North American Steel Construction Conference (NASCC) in Long Beach, CA from March 24-26.

Cross was one of several speakers at the conference who addressed the volatile steel-pricing situation. Currently, material surcharges on wide flange and rebar is at $120 per ton.

This year’s Steel Conference attracted an audience of slightly more than 2,000 — primarily designers, fabricators, detailers, erectors, and professors. Attendance was down approximately 10% this year and conference management attributed the decline to the difficult economic times brought on by the unpredictable pricing environment.

Cross emphasized, however, that while steel prices are up, there is no shortage of material. In addition, he stressed that the material price increases will actually have only a minimal impact on the overall project cost. “It should be considered that increases in the mill price of steel have only a small impact on the overall cost of the project,” Cross explained. “On a typical project, the cost of the fabricated and erected steel frame represents 10% to 12% of the overall project cost. Of that steel frame package, mill material accounts for only 20% to 25% of the cost. This means that mill material accounts for only 2% to 3% of the project cost. A 40% increase in mill cost would equate to an increase of 1% in project cost.”

To read Cross’ full comments, visit www.aisc.org/PricingComments. For additional information contact Scott Melnick, AISC's VP of Communications at 312-670-8314.

Attending Spring Board?

The NAHB Spring Board of Directors Meeting and the Commercial Builders Council Board of Trustees Meeting will be held in Washington, DC, April 27 - May 2, 2004. Meetings will take place at the National Housing Center (NHC) and the Marriott Wardman Park Hotel. Be sure to plan now to attend the meetings and events. The Commercial Builders Council Spring Board Schedule is listed below. For additional information or to register online click here.

National Commercial Builders Council

Spring Board Schedule

Tuesday, April 27

Wednesday, April 28

Friday, April 30

Saturday, May 1

Sunday, May 2

The murky waters of wetland regulation
Wetland regulations won't get any clearer following a recent decision by the U.S. District Court to dismiss NAHB's lawsuit against the Army Corps of Engineers' so-called "Tulloch II Rule." Under this rule, anytime that a backhoe or bulldozer simply moves earth around in a wetland, the Corps regards that soil movement as a regulated "discharge" requiring a permit — regardless of whether any new material is actually added.

While the rule supposedly allows a developer to escape regulation when "project-specific evidence" shows the activity only results in "incidental fallback," this illusory exception has never been qualified nor granted by the Corps. The judge last week acknowledged NAHB's desire for certainty and clarity regarding this aspect of wetlands permitting, but he dismissed NAHB's suit on grounds that it was not "ripe" because the association was unable to produce individual builders with case-specific complaints.

This once again highlights a disturbing trend wherein environmental groups are more easily gaining access to the courts than builders. NAHB has renewed efforts to solicit more member participation in lawsuits, and will also appeal the latest decision. Contact Duane Desiderio, x8146. [return to top]

Building green has financial benefits and more behind it
Research by the U.S. Department of Energy and the U.S. Green Building Council reveals that energy-efficient construction compliant with Leadership in Energy and Environmental Design (LEED) and Energy Star standards produces annual energy savings of 20%-50%. Commercial developers can recoup a project's cost in as few as two years, while residential builders earn their payback within five years.

LEED certified buildings offer other benefits as well, such as lower operating costs and higher asset values. In addition, better indoor air quality and natural light boost worker productivity, improve employee attendance and even drive up sales.
 
New York, Maryland and Oregon already offer green-building incentives; and experts believe these research findings could prompt other states and local governments to follow suit. Among the cities offering grants and private loans for green projects are Portland, OR; Seattle; Pittsburgh; and Columbus, OH. [return to top]

Averting $3.5 billion worth of additional storm water regulations
Last week the EPA announced its final decision to not issue Effluent Limitation Guidelines . This is a tremendous victory for NAHB, since the additional regulations being considered would have cost developers and home builders an estimated $3.5 billion per year. State and local environmental regulators also supported this decision, as comprehensive storm water permitting rules already in place are sufficient to limit site runoff and protect our environment. The April 1 announcement that EPA would not alter its existing storm water regulations capped five years of hard work by NAHB members and staff, along with a prodigious amount of sound scientific research funded by NAHB and supervised by in-house experts. A full update will be reported at NAHB's Spring Board of Directors Meeting this month. Meanwhile, read the NAHB statement applauding the breaking news or contact Marolyn Parson, x8157. [return to top]

New mailbox regulations still raise some concerns
Nearing the end of year-long negotiations with the U.S. Postal Service (USPS) over onerous new mailbox requirements for multifamily owners and developers, NAHB has convinced the Post Office that a proposal to retrofit wall-mounted mailboxes in all existing apartments and condominiums would be impractical and costly.

However, remaining concerned about a number of issues in the proposed final rule, NAHB has decided not to sign an agreement with the Postal Service that would prevent the association from commenting once the rule is published or taking other actions if the new requirements prove to be overly burdensome.

The Postal Service is expected to publish its proposed final rule within a few weeks.

One major concern is that the proposed final rule will require mailbox retrofitting in buildings that undergo “substantial renovation,” a term that has been only loosely defined. As currently proposed, local postmasters would have the authority to determine what constitutes a substantial renovation.

NAHB forms council for concrete
Don’t let the name of the National Association of Home Builders new Concrete Home Building Council fool you. The new entity of the Building Systems Councils has a good deal of value to the commercial builder as well. The same reasons more homeowners are building homes with above-grade concrete components — durability, design, comfort, and quiet — are all desirable in commercial structures.

Building with concrete or cement-based building systems allows for a more controlled build with comparable or less worksite waste, pilferage, and weather damage or delay than conventional building. The natural noise resistance of concrete and cement structures make it the ideal building system for hotels, motels, and other roadside commercial structures where quiet and comfort is desired.

To learn more about this new council, building with concrete and cement, or to find a member manufacturer, contact NAHB’s Building Systems Council, x8576 or www.nahb.org/buildingsystems. [return to top]

Showcase your commercial project
Don't miss the opportunity to showcase your commercial project before a national audience and win the recognition you deserve for you and  your construction team by entering the 2005 Awards of Excellence — Building Excitement annual awards program.

The NCBC Awards of Excellence program recognizes achievements in the national commercial building industry for design (remodeling and new construction), market appeal, energy efficiency, challenges faced during building and overall success of the project. All builders, architects, designers, engineers, contractors, developers and building owners nationwide are eligible to enter this prestiges competition.

All entries must be received by July 26, 2004.  The Call or Entries Brochure including the entry form is now available. For more information, contact Amy Larrabee, x8455. [return to top]

Commercial Builder magazine star search
Commercial Builder magazine is looking for possible profile candidates to be featured in future issues of the magazine. If you know of a successful commercial builder that is either new to commercial, has recently diversified in the commercial building industry or is a seasoned veteran, please contact Commercial Builder magazine's publisher, Amy Larrabee, x8455.

Published quarterly, Commercial Builder is the official publication of NAHB's National Commercial Builders Council (NCBC). This business publication reached every NCBC member. Each issue of Commercial Builder contains an interview with a high-achieving commercial builder, plus features on issues and trends, product round-ups and a variety of regular columns.

Help us find our next cover star! [return to top]

Recruit three NAHB members in April, get a membership day jean jacket
Members who recruit three or more new NAHB members during April as part of the NAHB National Membership Day campaign will receive a 2004 NAHB jean jacket. NAHB National Membership Day is April 26.

This year, Membership Day prizes also include:
Double Spike Credits: All recruiters will receive double spike recruitment credits for their April recruits. Double Spike retention credits will also be issued for the retention of new 2003 members.
Rookie Recruiter Award: This award is presented to first-year members who recruit the most new members during April within his or her group size.

New this year, NAHB will webcast Membership Day activities including tips from top Spikes, new member mentoring ideas, creative Membership Day activities from HBAs around the country and more.

For information, email the Membership Hotline at membership@nahb.com, x8440 or visit www.nahb.org/membershipday. [return to top]

Member Advantage: Save 15% On Payroll Processing With Paychex®
NAHB members save 15% on payroll processing charges and 401(k) and Section 125 set-up fees with Paychex.  In addition to employee payroll checks and statements, Paychex produces accounting records and management reports, tax payment notices, and payroll tax returns.

Call 800-729-2439 for complete details. Identify yourself as an NAHB member and use Member Advantage code 5685.

To order online and for details on more than a dozen other money-saving Member Advantage discount programs click here, or go to http://memberadvantage.nahb.org.

Go to www.nahb.org to explore the numerous advantages associated with
membership in your local, state, and national home builders association. [return to top]

Upcoming events
April 14 in Chicago: Building for Boomers & Beyond: 2004 Seniors Housing Symposium
This is the premier education and networking event for industry professionals who operate in the growing 50+ marketplace.  A conference brochure is available at www.nahb.org/build4boomers. For more information, contact Jeff Jenkins, x8292.