New Construction Starts in December Jump 23 Percent; Annual Total for 2012 Advances 6 Percent to $463.6 Billion

New construction starts in December climbed 23% to a seasonally adjusted annual rate of $530.0 billion, according to McGraw-Hill Construction, a division of The McGraw-Hill Companies. The sharp increase for total construction followed two months of lackluster activity, as several very large projects in December helped to lift the pace of contracting. By major sector, substantial gains in December were reported for nonresidential building and nonbuilding construction, while housing maintained the steady upward trend that’s been present for much of the past year. For all of 2012, total construction starts grew 6% to $463.6 billion, a moderate yet stronger rate of increase than what took place during 2010 (up 2%) and 2011 (up 1%).

Read the full story from McGraw Hill Construction here.

We received this letter from PG&E and thought it would be useful information for all of our customers… Rates going up in 2013.

The letter:

On December 31, 2012, PG&E filed our 2013 Annual Electric True-up (AET) advice letter with the California Public Utilities Commission (CPUC). The AET is a filing that occurs every year to “true-up” costs of electricity and of providing reliable electric transmission and distribution to customers for the next year. The supplemental filing establishes our consolidated electric rates for 2013, approved in various CPUC and Federal Energy Regulatory Commission (FERC) rate cases. The rate changes will take effect January 1, 2013.

What this means for you:

On January 1, 2013, the total system electric average rate will increase by about 2.6% relative to January 2012. The results for individual classes vary, as shown in the table below.

A key driver of higher rates is increased procurement of renewable energy to meet the state’s Renewable Portfolio Standard. On May 1, electric rates will likely increase, on average, about 3% to reflect increased costs for electric transmission infrastructure. We will share specific rate impacts by customer class at that time.

Gas rate changes also filed

Earlier in December, we also announced our natural gas rate changes in our Annual Gas True-up. The filing includes changes in the wholesale cost of procuring gas, costs of maintaining and operating our gas infrastructure, including storage and pipelines, and serving new customers. The filing does not include costs related to San Bruno or the costs of our recently approved Pipeline Safety Enhancement Plan (PSEP). We anticipate announcing rate changes related to PSEP in February 2013, or soon thereafter.

As you may know, gas rates change monthly with the changing costs of procuring natural gas. A detailed natural gas forecast by rate class can be accessed online. Or, if you have specific questions about your company, please feel free to contact me directly.

Thank you for being a PG&E customer. We appreciate your business.

If SiliconX Construction can help your business in any way, please don’t hesitate to contact us.

Often when investing in a new roof system you are faced with many different warranty options, but what do they all mean? Most litigation issues in buildings come from water migration issues so the correct warranty can be critical.

Many contractors tell you their warranty is superior but is it? A manufacturers warranty can be very different from a No Dollar Limit Labor and Materials Warranty from a manufacturer.

First your warranty should be from a reputable manufacturer. The manufacturer should manufacture their materials, have a track record and be able to back their warranty. Does the warranty have exclusions? Does the warranty exclude ponding water, if so is ponding water defined? Is the warranty pro-rated? Does the warranty include any additional riders for punctures, reflectivity or energy efficiency? Does the warranty cover the complete roof system and all it’s components? Is the contractor certified by the manufacturer to install a warranted system? Most warranties require ongoing maintenance or inspections does yours?

SiliconX Construction uses only factory certified roofing contractors. Look for 10 – 30 year warranties depending on the system specified. The warranties typically offered are No Dollar Limit Labor and Materials Warranties. These warranties include repair or replacement costs for the labor and materials for the life of the warranty and are not pro-rated. Roof systems we typically install include a fee that is paid to the manufacturer to cover your warranty costs. In many instances the manufacturer will inspect the roof system after it is installed to insure standards when the warranty is requested.

The difference between a NDL warranty and a materials warranty can be drastic. If you installed a new $40,000 roof today with a 20 year NDL warranty in 10 years your warranty would be worth the cost of the replacement of the roof $40,000 or more. If you installed the same roof with a materials warranty only the top membrane cost or about $4,000 would be covered and in 10 years the warranty would be worth about $2,000. So you can see that paying a little more up front for a NDL warranty will pay you many times over in the long run.

SiliconX Construction works with best-in-class vendors to make sure the warranty for your roof limits your liability and is best for your goals regarding your building. If you have an existing roof system, we can also ensure your warranty remains intact through proper maintenance and inspections. Contact us today at 408.520.2450.

Thanks to our partner Platinum Roofing for the content of this article.

The word is getting out to the real estate brokerage community: SiliconX Construction provides high-quality general contractor services with exceptional attention-to-detail for a range of projects — from the smallest tenant improvements to large-scale, ground-up construction.

Key Building Ingredients

Beyond materials such as wood, steel and concrete, SiliconX brings four key ingredients to every project it builds:

•     Experience — The SiliconX team has experience with virtually any type of tenant improvement project — from Class A office space to highly complex, technically demanding clean rooms and R&D facilities.  The team’s expertise also extends to high-rise, mid-rise and low-rise construction that includes office, manufacturing, R&D, distribution, retail, hospitality, and even parking structures.

•     Personalized service — Work is tailored to the precise needs of each client. Clear, concise, and continuous communication with brokers, clients, and subcontractors ensures everyone is always on the same page.

•     Detail-oriented work — SiliconX pays close attention to the details, from fit and finish to the little touches that result in a first-class end result.

•     Highly competitive pricing and fast turnarounds on estimates — Brokers and their clients are busy, and opportunities often have short timeframes. SiliconX responds with quick and accurate rough estimates — at no obligation — when brokers need to pencil something out for a client.

Earning your Business Every Day

While some contractors may rest on their reputations, SiliconX Construction’s philosophy is to work to earn your business every day.

If you’re a broker or property owner who would like to know more — or you need some rough project cost estimates really quickly — e-mail VP Todd Trekell, or call him directly at (408) 418-0099 Ext. 502.