Priming the pump to speed projects through construction pipeline

//October 30, 2008//

Priming the pump to speed projects through construction pipeline

//October 30, 2008//

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Agencies left to speculate on which projects could break ground firstWhile the governor’s office has proposed placing as much as $5 billion worth of public infrastructure projects on the fast track to development, a spokesman now says that figure wasn’t developed from a master list of items in the pipeline.

A list of which projects will go on the fast track has been left up to speculation, as executives at a number of agencies are working to identify which plans, realistically, can be pushed through the pipeline.

In his plan to invigorate New Jersey’s economy, Gov. Jon S. Corzine said he wanted “to accelerate, where feasible, all currently funded capital spending” for projects that were “authorized, planned and funded,” creating optimism among contractors, project managers and engineering firms that do business with the Port Authority of New York and New Jersey, New Jersey Transit, the state Schools Development Authority, and other agencies.

“We have our feelers out to make sure we are abreast of the developments, and our engineers are seller-doers, too,” said Brian Duke, national director of marketing at engineering services firm CMX Engineering in Manalapan.

Several firms said they expect bid advertisements for projects like the widening of the New Jersey Turnpike and school construction to be posted sooner than for others.

Corzine, who originally said he wanted to expedite $4 billion to $5 billion worth of projects in the next six months, confirmed this last week. “Instead of starting the Turnpike widening in the spring, we should be getting that going in December,” he said.

The $2 billion Turnpike project is to widen to 12 lanes the section of highway between interchanges 6 and 9; construction is expected to be complete in early 2013.

Duke said he expects an accelerated flow of project bid invitations from the state Department of Transportation, the Turnpike Authority, and the Division of Property Management and Construction in the state Treasury Department. The state’s schools construction program could get more funding than the $3.9 billion in bond financing approved in July, he added.

The Schools Development Authority had anticipated awarding contracts worth $1.2 billion by the end of 2009, but the agency may award as much as $1.4 billion now, spokesman Larry Hanover said. Five projects totaling $123 million are to be awarded in the first quarter of 2009, including a $27 million project to build the Morgan Village Middle School in Camden.

In all, Hanover said the agency has $247 million worth of contracts in its pipeline between now and the first quarter of 2009 for an estimated eight schools.

James Major, vice president of Brownworth Engineering LLC, an East Brunswick-based provider of site remediation and engineering services, also expected school projects to be among the earliest to get off the ground.

But one of the biggest generators of project contracts would be the Trans-Hudson Express tunnel project that’s now in the design stages, Major said. That is part of the $7 billion Access to the Region’s Core project, run through the Port Authority, to expand passenger-rail capacity between New York and New Jersey.

Major said the company is working on a portion of the design work for the THE tunnel project, including the partial demolition of a building in North Bergen at the entrance to the tunnel. Construction bids for select portions of the tunnel project could be available as early as 2009 if they ride Corzine’s fast track, he said, though the design work won’t be completed until 2011.

Construction and engineering services contractors are busy juggling their spreadsheets to predict the shape of project bids on the way. Duke said bids for five Turnpike Authority projects, collectively worth between $55 million and $64 million, could be advertised between now and the year’s end. These include a $40 million project to repair and expand New Mullica River Bridge in Camden County, according to Turnpike Authority documents on anticipated contract advertisements.

A review of Port Authority bid invitations for this year’s fourth quarter showed 34 projects that could cost more than $410 million, based on contracts it has outlined. These cover a wide range of projects, from drainage improvements and replacement of damaged electrical boxes to roof repairs.

“We are in the process of reviewing our capital plan for 2009 and the ensuing years, and will determine which of the agency’s projects can be fast-tracked,” Ron Marsico, a spokesman for the Port Authority, said in a statement.

Duke said bids involving construction management and civil works have been advertised for significant projects of unidentified value from the South Jersey Port Corp. Two other major projects are from the DOT, for construction inspection on the Route 120-Paterson Plank Road bridge and the Route 1-Millstone River Bridge, he said.

Bidding also is under way for 47 Port Authority projects, and will extend through Dec. 31; there is no estimate of their total value. These include 24 general solicitations of goods, services and miscellaneous items — ranging from refuse removal to locksmith services — and a three-year contract to maintain plants at LaGuardia Airport. The airport list has 15 construction bids for works that include aviation buildings, taxiway extensions and paving contracts, according to Port Authority bid documents.

And experts said it’s unlikely that putting so much in the pipeline at once would cause a shortage of materials and labor, or increase costs.

“It’s not like somebody will push a button and all will flow out,” he said. “It’s more like priming the pump to get the flow started.”

Major said the public bidding process would have a backlog to clear before new projects begin. Also, new projects would take their time winding through various stages of the bidding process, he said.

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