Last week, Champion Environmental Services, Inc. mobilized a team with heavy equipment to address an emergency out of state. The circumstances required CESI to assemble our top veteran operators and project managers off of other job sites. Due to the sensitive nature of the situation, Champion Environmental Services, Inc. is maintaining a reserved approach with regard to press releases per the wishes of the client.
What we can state is that the operation requires highly skilled professionals who can navigate and implement a prudent strategic approach in a dangerous situation. The current status is that major problem areas have been stabilized but will require our presence seven days a week for the next four months.
As the conditions become more favorable for the client, and with their authorization, we will be making statements to the press and updating more definitive information here.
Thursday, July 30, 2009
Stimulus Package
Lately, there has been a great deal of discussion among our peers concerning the impact of stimulus monies released by the Federal Government; the question, has the infusion of capital resulted in a more robust construction outlook? Partisan politics aside, depending upon who you are speaking to and what industry he or she represents, responses are varied.
From the perspective of demolition and environmental remediation companies, here are the current observations. Most of the money is being allocated to local municipalities that are employing the funds to address the blight of foreclosed or abandoned homes. Given the public nature of such bids and the need for townships to get the best return on money invested, the jobs are going cheap and attracting large groups of contractors to bid the work.
For example, yesterday, bid results were posted for small demolition project on behalf of a public school in Illinois. The 40,000 square foot building attracted 23 contractors, one from out of the state. The bid range from low to high covered a $275,000.00 spread. Excessive low bidding is not a healthy reflection of what prices a robust economy would normally command; disproportionate low bidding has become the norm. Exasperating the problem is the types of companies that are submitting proposals.
As we monitor the situation, public bids are attracting many companies who express little credibility as a demolition contractor. Everything from landscape companies to remodeling firms and local residents who may possess a piece or two of equipment are bidding demolition work. The diversity of those who tender proposals reflects that business owners are attempting to diversify and/or make use of available equipment/personnel in order to keep business going. The downside is that local entities who fail to scrutinize the capabilities of contractors are placing unqualified workers in dangerous situations.
Deep, sustainable relationships with private entities have allowed Champion Environmental Services, Inc. to continue a robust workload this summer.
But what of construction and other constituents related to real estate, how has the stimulus influenced their business?
The commercial side of real estate has witnessed fewer deals and higher vacancy rates. Mostly, deals are happening in the form of sale lease backs with few developers able to secure funding for new projects as the credit markets are still unyielding. As Chris Lydon, SVP, who leads Grubb's Chicago Industrial Group, tells GlobeSt.com, “"The capital markets are having such an impact on our industry in that developers are not building spec projects because of the capital markets and credit issues," Lydon says. It's so hard to get deals done these days, which makes spec development pretty much nonexistent at this point and unlikely for the entire year. It's all going to be build-to-suit projects that you're going to see from a construction standpoint."
Link to the referenced article: http://www.globest.com/news/1461_1461/chicago/180078-1.html
The greatest impact of stimulus appears to be in the areas of road work and general infrastructure improvements. Ageing bridge, sewer system, and roadway projects reflect important improvements while providing work to many. The only downside that we have observed is that given the specialized nature of the work, fewer companies are competing for more of the money; if a company looses out on one bid, there are literally hundreds of other opportunities.
The bottom line; stock market and commodity volatility continues, jobless claims ticked up, housing starts are down, and foreclosures continue.
From the perspective of demolition and environmental remediation companies, here are the current observations. Most of the money is being allocated to local municipalities that are employing the funds to address the blight of foreclosed or abandoned homes. Given the public nature of such bids and the need for townships to get the best return on money invested, the jobs are going cheap and attracting large groups of contractors to bid the work.
For example, yesterday, bid results were posted for small demolition project on behalf of a public school in Illinois. The 40,000 square foot building attracted 23 contractors, one from out of the state. The bid range from low to high covered a $275,000.00 spread. Excessive low bidding is not a healthy reflection of what prices a robust economy would normally command; disproportionate low bidding has become the norm. Exasperating the problem is the types of companies that are submitting proposals.
As we monitor the situation, public bids are attracting many companies who express little credibility as a demolition contractor. Everything from landscape companies to remodeling firms and local residents who may possess a piece or two of equipment are bidding demolition work. The diversity of those who tender proposals reflects that business owners are attempting to diversify and/or make use of available equipment/personnel in order to keep business going. The downside is that local entities who fail to scrutinize the capabilities of contractors are placing unqualified workers in dangerous situations.
Deep, sustainable relationships with private entities have allowed Champion Environmental Services, Inc. to continue a robust workload this summer.
But what of construction and other constituents related to real estate, how has the stimulus influenced their business?
The commercial side of real estate has witnessed fewer deals and higher vacancy rates. Mostly, deals are happening in the form of sale lease backs with few developers able to secure funding for new projects as the credit markets are still unyielding. As Chris Lydon, SVP, who leads Grubb's Chicago Industrial Group, tells GlobeSt.com, “"The capital markets are having such an impact on our industry in that developers are not building spec projects because of the capital markets and credit issues," Lydon says. It's so hard to get deals done these days, which makes spec development pretty much nonexistent at this point and unlikely for the entire year. It's all going to be build-to-suit projects that you're going to see from a construction standpoint."
Link to the referenced article: http://www.globest.com/news/1461_1461/chicago/180078-1.html
The greatest impact of stimulus appears to be in the areas of road work and general infrastructure improvements. Ageing bridge, sewer system, and roadway projects reflect important improvements while providing work to many. The only downside that we have observed is that given the specialized nature of the work, fewer companies are competing for more of the money; if a company looses out on one bid, there are literally hundreds of other opportunities.
The bottom line; stock market and commodity volatility continues, jobless claims ticked up, housing starts are down, and foreclosures continue.
Thursday, July 9, 2009
North Riverside Mall Asbestos Abatement
Champion Environmental Services, Inc. is in the process of abating a former Firestone Tire Center at the North Riverside Mall in North Riverside, Illinois. The project involves the removal of asbestos containing material (ACM) located in showroom area in the form of drywall; additional ACM drywall from hallways and offices will also be properly removed.
As this project is a Cook County initiative, Champion Environmental Services,Inc. shall utilize local union laborers with current Illinois accreditation, medical surveillance and training while providing an onsite safety supervisor with necessary training for competent person status as required by OSHA.
As this project is a Cook County initiative, Champion Environmental Services,Inc. shall utilize local union laborers with current Illinois accreditation, medical surveillance and training while providing an onsite safety supervisor with necessary training for competent person status as required by OSHA.
Tuesday, July 7, 2009
Update of Activities by Champion Environmental Services, Inc.
The slow update of information here is reflective of a brisk season that is stretching our allocated resources in both people and machinery.
We are attempting to ensure that our bid for Public Building Commission of Chicago is complete in meeting all the appropriate WBE/MBE/VBE/BEPD goals. The aggressive target participation on the Michael Reese demolition and asbestos removal project is to ensure that local entities benefit financially while creating a level playing field for diverse involvement on what will be a historic undertaking for the City of Chicago.
In other news, Champion Environmental Services, Inc. is receiving local press coverage of our efforts on the University of Wisconsin La Crosse initiative.
Photo of demolition activities thanks to coverage by the La Crosse Tribune; the picture is attributed to Peter Thomson of the La Cross Tribune.
Here is a link to the article and photograph: http://www.lacrossetribune.com/articles/2009/07/03/news/01destruction.txt#READ_COMMENT
We are attempting to ensure that our bid for Public Building Commission of Chicago is complete in meeting all the appropriate WBE/MBE/VBE/BEPD goals. The aggressive target participation on the Michael Reese demolition and asbestos removal project is to ensure that local entities benefit financially while creating a level playing field for diverse involvement on what will be a historic undertaking for the City of Chicago.
In other news, Champion Environmental Services, Inc. is receiving local press coverage of our efforts on the University of Wisconsin La Crosse initiative.
Photo of demolition activities thanks to coverage by the La Crosse Tribune; the picture is attributed to Peter Thomson of the La Cross Tribune.
Here is a link to the article and photograph: http://www.lacrossetribune.com/articles/2009/07/03/news/01destruction.txt#READ_COMMENT
Wednesday, June 24, 2009
Ottawa, Illinois Asbestos Job Finished
Champion Environmental Services, Inc., Project Manager Ralph Nordyke reports that the asbestos abatement of a shuttered bank in Ottawa, Illinois has been successfully closed out on time and without incident.
The project, taking little more than a week, included the removal of contaminated floor tile, mastic underlay, and transite. Champion Environmental Services, Inc., follows all applicable Illinois EPA rules for asbestos abatement delegated through the authority of the USEPA which enforces the National Emission Standards for Hazardous Air Pollutants (NESHAP). NESHAP regulates asbestos during demolition, renovation, and disposal.
The ACM removal was performed in preparation for demolition; the cleared land will be used to build a new Ottawa health care facility.
The project, taking little more than a week, included the removal of contaminated floor tile, mastic underlay, and transite. Champion Environmental Services, Inc., follows all applicable Illinois EPA rules for asbestos abatement delegated through the authority of the USEPA which enforces the National Emission Standards for Hazardous Air Pollutants (NESHAP). NESHAP regulates asbestos during demolition, renovation, and disposal.
The ACM removal was performed in preparation for demolition; the cleared land will be used to build a new Ottawa health care facility.
Friday, June 12, 2009
Arcadia, Wisconsin
Champion Environmental Services, Inc. will be mobilizing in Arcadia, Wisconsin to provide demolition, asbestos abatement, and site/soil remediation services for several buildings located on East Main and South Washington streets.
Additional work scope involves the salvage of antique brick, site clearing and restoration.
Additional work scope involves the salvage of antique brick, site clearing and restoration.
Wednesday, June 10, 2009
Michael Reese Hospital Demolition and Asbestos Abatement
Champion Environmental Services, Inc. has been chosen as one of the qualifying contractors to bid on the Michael Reese Hospital demolition and asbestos abatement project that is being facilitated by the Public Building Commission of Chicago.
Michael Reese Hospital is comprised of 28 structures spanning over 1.6 million square feet with buildings dating back to 1907. This vast-complicated project will involve demolition and asbestos abatement of most of the buildings, associated parking structures and tunnels.
Given the scale of the project, the PBC was responsible for vetting over 26 companies through an intensive RFQ process. Due to the complexity reflected in the scope of work, the PBC split the project into three distinct bid packages; of the few qualified firms to provide proposals, Champion Environmental Services, Inc., was one of the companies found competent enough to bid all three packages. [Only two qualified contractors will be allowed to bid the entire project]
Champion Environmental Services, Inc., is proud to be an integral facet in Chicago’s quest for the 2016 Olympics. We will certainly keep everyone up to date as this historic Chicago project evolves.
Subscribe to:
Posts (Atom)