Corridor contractors expect better year with flood, government projects

Corridor building projects are expected to keep contractors and building trades workers busy in the upcoming construction season.

“Things aren't great, but they're certainly better than what we've see for the last couple of years,” said Mark Gullickson, president of Ryan Companies US Inc. “We have some projects starting in Des Moines involving some of our larger clients who have money, understand the markets and are more involved with capital projects.”

Federal and state funding in the wake of the 2008-flood generated construction projects like the Cedar Rapids Public Library, the Cedar Rapids Central Fire Station, the Jean Oxley Linn County Public Service Center, the Linn County Juvenile Justice Center, the Linn County Community Services/Options of Linn County building, the Cedar Rapids school district's Educational Leadership & Support Center and the new federal courthouse.

Crews also will be working on privately funded projects like the Destination Cancer Center at Mercy Medical Center and the Physicians' Clinic of Iowa medical mall.

At the southern end of the Corridor, work is progressing on the Coralville Center for the Performing Arts, the Carver-Hawkeye Arena expansion and renovation, and the University of Iowa College of Public Health building.

The Cedar Rapids Convention & Events Center also will create work along with Paramount Theatre restoration, the former U.S. courthouse, the Veterans Memorial Building and conversion of the former public library for TrueNorth Companies.

Scott Smith, president of the Cedar Rapids-Iowa City Building Trades Council, said the construction season should provide plenty of work for building trades workers.

“Depending on how many more projects roll out this spring and summer, it looks like a couple of pretty good years coming up,” Smith said.

Scott Sylvester, director of business development at Knutson Construction in Iowa City, said the company is receiving more requests for quotes on potential construction projects.

“There's a lot more quotes out there in the public sector and we hope it continues,” Sylvester said. “There's a lot more life to them than in previous years.

“Last year, there was a lot of noise in the winter and then everyone in the private sector closed their checkbooks. We're starting to get inquiries from people who are thinking about doing projects when the economy improves.”

Some companies that have delayed expansions are starting to test the waters, according to Richard Pankey, general manager of business development at Point Builders in Cedar Rapids.

“They're not being aggressive and it's nothing dramatic, but they've delayed their expansion plans through 2010 and 2011,” Pankey said. “Companies are making sure they have the sales to justify an expansion.”

Tom Amosson, president of Rinder-knecht Associates in Cedar Rapids, said flood recovery will be the main driver for Corridor construction for at least another year.

“We're busy with the National Czech & Slovak Museum project as well as Mercy's Destination Cancer Center,” Amosson said. “When the economy starts heating up and companies expand their plants to meet demand, we will start seeing some new projects.”

Jason Imhof, vice president of Miron Construction and principal in charge of the firm's Iowa operations, said the recession has contributed to a highly competitive bidding climate.

“It's as competitive now as I've ever seen it in the past 15 years,” Imhof said. “It's a great opportunity for a building owner because they can get a lot more for their dollar.”

Amosson said the tight competitive bidding is squeezing some subcontractors.

“You can be the low bidder on a job with a paper thin margin and find that one of your subcontractors has gone out of business because they're broke,” Amosson said. “We also have out-of-state contractors that have been awarded contracts and then they go back to the local subcontractors and tell them to cut their bid by 5 percent.

“When subcontractors are already going broke with what they've bid, how do they cut any more and hope to stay in business?”