Tuesday, December 28, 2010

AGC Construction Barometer rising in the Upstate, falling in the Lowcountry

The construction outlook is more optimistic in the Upstate than the Lowcountry, according to the latest construction barometer released by Carolinas Associated General Contractors.

The report showed a 1% uptick overall in North Carolina and South Carolina for the third quarter, despite the disappearance of federal stimulus spending, particularly in the highway and utility segment.

In the Upstate, the barometer increased 2.7 percent while it fell 3.4 percent in the Lowcountry.

Read the entire report at GSA Business by clicking here.

New Federal Construction Work Opportunity

The Federal government continues its improvements to certain military installations around the country. The latest announcement is the construction of more than 300 housing units at the Marine Corps base at Camp Lejeune, NC, and the Marine Corps Air Station at Cherry Point, NC.

These projects are opportunities for construction work for various trades. Below are details on the construction projects:

MARINE CORP AIR STATION CHERRY POINT – HAVELOCK, NC

  • Project Name: Nugent Cove Section 3B
  • Description: 46 new home mix of single family and duplex – vertical construction only
  • Start date: May / June 2011
  • Finish date: May 2012
  • Total value of the project is roughly $10M
  • Trades: Concrete Slabs and Flatwork, Termite Protection, Rough Carpentry, Exterior and Interior Doors & Windows, Finish Carpentry, Plumbing, HVAC, Electrical, Roofing, Vinyl Siding, Gutters, Screen Porches, Landscaping, Wood Fencing, Vinyl Fencing, Chainlink Fencing, Insulation, Gypsum Board, Painting, Vinyl Flooring, Carpet, Cabinetry, Countertops, Cleaning, Bath Accessories, Mirrors, Playground Equipment, LEED Certification, and Energy Star Testing.

MARINE CORP BASE CAMP LEJEUNE – JACKSONVILLE, NC

  • Project Name: Watkins Grove
  • Description: 136 unit new home mix of single family and duplex – vertical and civil construction
  • Start date: April 2011
  • Finish date: April 2012
  • Total value of the project is roughly $25M
  • Trades: Surveying, Civil Sitework (Earthwork, Storm Sewer, Water Distribution, Paving, Site Concrete), Engineering Testing Services, Waste Disposal, Concrete Slabs and Flatwork, Playground Equipment, Termite Protection, Rough Carpentry, Exterior and Interior Doors & Windows, Finish Carpentry, Plumbing, HVAC, Electrical, Roofing, Vinyl Siding, Gutters, Screen Porches, Landscaping, Wood Fencing, Vinyl Fencing, Chainlink Fencing, Insulation, Gypsum Board, Painting, Vinyl Flooring, Carpet, Cabinetry, Countertops, Cleaning, Bath Accessories, Mirrors, LEED Certification, and Energy Star Testing.

MARINE CORP BASE CAMP LEJEUNE – JACKSONVILLE, NC

  • Project Name: Midway Park Phase 3 (LEED project)
  • Description: 134 unit new home mix of single family and duplex – vertical and civil construction
  • Start date: March 2011
  • Finish date: August 2012
  • Total value of the project is roughly $28M
  • Trades: Surveying, Civil Sitework (Earthwork, Storm Sewer, Water Distribution, Paving, Site Concrete), Engineering Testing Services, Waste Disposal, Concrete Slabs and Flatwork, Playground Equipment, Termite Protection, Rough Carpentry, Exterior and Interior Doors & Windows, Finish Carpentry, Plumbing, HVAC, Electrical, Roofing, Vinyl Siding, Gutters, Screen Porches, Landscaping, Wood Fencing, Chainlink Fencing, Insulation, Gypsum Board, Painting, Vinyl Flooring, Carpet, Cabinetry, Countertops, Cleaning, Bath Accessories, Mirrors, LEED Certification, and Energy Star Testing.

To inquire about this work, contact:

David E. Bollenbacher, Assistant Construction Manager
Actus Lend Lease
30 Cont Maryland Avenue, Camp Lejeune, NC 28542
Telephone: 910-219-6374
Fax: 910-219-6336
Cell: 910-376-5442
Email: David.Bollenbacher@actuslendlease.com
www.actuslendlease.com

Mortgage interest rates continue to deline


The Federal Housing Finance Agency today reported that the National Average Contract Mortgage Rate for the Purchase of Previously Occupied Homes by Combined Lenders, used as an index in some ARM contracts, was 4.42 percent based on
loans closed in November. This is a decrease of 0.07 percent from the previous month.

The recent rate history can be viewed by clicking here.

The average interest rate on conventional, 30-year fixed-rate mortgage loans of $417,000 or less decreased 12 basis points to 4.38 percent in November. These rates are calculated from the FHFA’s Monthly Interest Rate Survey (MIRS) of purchase-money mortgages. These results reflect loans closed during the Nov. 23-30 period. Typically, the interest rate is determined 30 to 45 days before the loan is closed. Thus, the reported rates depict market conditions prevailing in mid- to late-October.

The contract rate on the composite of all mortgage loans (fixed- and adjustable-rate) was 4.35 percent in November, down 9 basis points from 4.44 percent in October. The effective interest rate, which reflects the amortization of initial fees and charges, was 4.46 percent in November, down 11 basis points from 4.57 percent in October. This report contains no data on adjustable-rate mortgages due to insufficient sample size.

Initial fees and charges were 0.80 percent of the loan balance in November, down 0.07 percent from 0.87 in October. Twenty-eight percent of the purchase-money mortgage loans originated in November were "no-point" mortgages, down from 33 percent in October. The average term was 28.1 years in November, up 0.1 years from 28.0 years in October. The average loan-to-price ratio in November was 74.8 percent, up 2.6 percent from 72.2 percent in October. The average loan amount was $214,800 in November, down $200 from $215,000 in October.

View the press release from FHFA by clicking here.

Monday, December 27, 2010

Money Saving Tip from Rick Quinn

Occasionally our members share money-saving tips with one another. This one is from Rick Quinn, Quinn Satterfield, regarding the inclusion of trash and sewer fees on bills for temporary water service from the City of Greenville.

The water bill comes from the Greenville Water system for both city and county water meters so the sewer bill is there either way. ReWa will discount the bill by the amount of the sewer for three quarters while the house is under construction but the builder has to call ReWa and they have access to the water system’s billing and can toggle it off. If you don’t have the meter set, or have it removed the bills will end also.

The trash fees can also be toggled off by calling Ed Marr at the city public works department at 467-4335 or by calling Arissa Gaines at the water system’s billing department (she will need to verify with the city that the house is under construction).

After the C.O. has been issued the trash fees will not be avoidable but the sewer and water can be avoided by having the water meter removed.

Holding Together

When one of our builder members was asked why he was a part of the HBA, he answered with this analogy:

“I always liked the story of the father giving his son a stick saying ‘Try to break it,’ and he did. Then he gave him ten sticks with a string around them. The father said, ‘Now try to break them.’ The son tried but he could not, and this is the way our association works. As one we are not very strong, but as many we hold together, even in tough times.”

How true this is, and each of us can be grateful that we are a part of a bigger group that exists to represent our needs and fight for our work and industry. Builders, remodelers, flooring providers, electrical contractors, insurance agencies – we all benefit from the stronger voice that our association brings to the table, whether it be with greater buying power to give us valuable discounts or greater political power to give us favorable regulations. But do you realize that most of our association is made up of associate members, not builders?

Our associates – vendors, subcontractors, and supporting businesses – comprise 2/3 of our association membership. The HBA would not be nearly as strong without the membership and support of these companies. Many of them join because they hope that by being members and getting involved, they can earn the respect, relationship, and ideally business partnership with our builders and other members. I am writing now to remind all of us of the importance of honoring their commitment to our industry and association by doing business with a member when possible.

I know that competition is fierce right now, and we make our business decisions based on what’s best for our customers and our bottom line. Many of us are loyal to trade partners that we’ve been with for years, and that is commendable. But where do you look when you’re ready to consider selecting a new subcontractor or vendor? I hope that you – like many of our builders – choose to peruse our HBA Member Directory first. After all, that is the list of companies who have made a significant investment in your industry, in their professional development, and in your business.

HBA members provide each of our companies with part of the string that ties us all together, making us unbreakable when by ourselves we could be snapped much more easily. That is why I’m grateful for every one of our members who have made or will make that investment in the HBA this year. Their dues, if even in a small way, help to all of us to stand with strength against whatever forces may strike.

Builders, it is vital for the survival and sake of our association that we give our fellow members the chance to earn our business by taking the time to occasionally come out to events, meet with them and your peers, and use the Directory as your buying guide. I have enjoyed building many new relationships with associate members over my years as a volunteer leader in the HBA, and my business is more enriched because of it.

Associates, a word to the wise about making the most of your opportunities: come out to events, get to know your fellow members and builders, but remember that, especially around here, it’s all about the relationship. Please, don’t try to sell every builder you meet on your product or service at each function; instead, build a professional friendship with them, and show your support by making yourself a regular presence in their industry circle. Not only will you gain new allies, but you will likely be at the top of their minds when they’re looking for someone who provides your services.

And for all of us, let’s just remember that what we get out of our membership is what we put into it. Being a HBA member doesn’t obligate you to come to every event and be involved in committees and councils, but you may likely find it to be much more rewarding – professionally and personally - if you do use your membership to forge new connections at our events and committee activities. Because those connections make for a stronger membership base, a stronger membership base makes for a stronger association, and a stronger association makes for a stronger industry!

Michael Dey, Executive Vice President

To Whom are You Giving Your Business?

Most of our member’s businesses, and that probably includes yours, are struggling during this down economic cycle. They are working harder than ever and some have been forced to think outside the box and develop new markets as old market opportunities disappear. We are all looking for new customers. If it’s any comfort, we know we’re not alone but it should also remind us to think of the other people that are in the same situation. A new contract or the next sale could influence the future of their business too.

Imagine if all 500 of our members agreed that they would buy only from other HBA members. It seems to me that it would create instant prosperity for us all. Whether you need a new deck, a roof, a vehicle, home remodel, car insurance, or a new driveway, it’s all in your Membership Directory. And it would mean more business for you too.

We’ve tossed around the “Do business with members” catch phrase long enough. Today there is every reason to give your business to a member. Take a look at your vendor list and move your business from non-members to members. Look in your Membership Directory before you give your business away. Your business could depend on it.

Stacie Byrd, Membership Specialist