Good times' headaches

The construction industry in northern Nevada foresees more the same for 2006 for better and for worse.

Even though some big jobs such as the Reno ReTRAC project and Spaghetti Bowl freeway work will be winding down during the year, construction executives see a steady stream of work headed their way.

The Nevada Department of Transportation has a long list of projects planned for 2006.

So does the Regional Transportation Commission.

And subdivision infrastructure projects water, sewer and roads stretch from Spanish Springs to Douglas County.

"We don't see any slowing, especially with what we have in the pipeline on the residential side," says Sean Carnahan, private works manager in northern Nevada for Granite Construction.

The continued boom, however,means no relief faced by construction executives as they scramble to find the resources to get the job done.

"It's insane," says B.J.

Sullivan, president of Sparks-based Clark & Sullivan Constructors.

"It's crazy."

Prices of nearly every commodity used by the construction industry have risen sharply.

Fuel prices have retreated a bit from their mid- 2005 highs, but copper remains high.

So does gypsum wallboard and PVC pipe.

Equipment prices have risen 7 percent in the past year.

That, Sullivan says, puts pressure on construction executives to make sure their contracts provide protection against inflation.

"We're become smarter about escalation clauses,"he says.

The only significant relief has come in lumber prices,which are important to homebuilders but a minor item in the bids for industrial and infrastructure projects.

The continuation of the boom also means contractors will be challenged to find and retain a qualified workforce, especially as the region's unemployment rate stays below 4 percent.

Granite executives want to ensure they don't run their craft workers ragged as they try to handle a flood of jobs.

"We're trying to keep a good work-life balance," says Carnahan."You can't lose sight of that."

He says Granite continues to pay particular attention to retention of its workforce to reduce the hassles of recruiting in a tight market.