March 8, 2007

INDUSTRY ACCESS*

Three Groups May Compete for Home Depot's Wholesale Unit

Three teams of private equity firms have formed and are considering bidding on Home Depot's wholesale unit, which could go for about $11 billion, reported The Financial Times. People familiar with the matter say the teams are: (1) Bain Capital, Carlyle and Clayton Dubilier & Rice, (2) Thomas H. Lee Partners, Goldman Sachs' buy-out unit and CCMP (the former private equity arm of JPMorgan Chase), and (3) Blackstone, Kohlberg Kravis Roberts, Leonard Green Partners and Texas Pacific Group. Full Story

Click here for more Industry Access news including recent new hires, merger & acquisition activity and who's offering new products.

* DHI Members may submit news releases to be considered for inclusion in DHI's IndustryWatch. Send to: jmadden@dhi.org.

BUSINESS UPDATE

The value of new construction starts fell 8% in January to a seasonally adjusted annual rate of $571.3 billion, according to McGraw-Hill Construction. Nonresidential building weakened for the second month in a row, following the elevated activity that had been reported for much of last year. Nonresidential building in January dropped 11% to $176.7 billion (annual rate). Modest declines were reported for the two largest commercial structure types, with stores easing back 1% and offices slipping 6%. Full Story

The traditional project delivery method of design-bid-build, once the sole delivery method used for U.S. General Services Administration projects is beginning to fade as the agency adopts collaborative and integrated delivery. GSA’s capital construction program has a total budget of $690 million for new construction, and $866 million for repairs and alteration projects, part of GSA’s $10-billion long-range building plan, reported Construction.com. Full Story

A key government indicator of planned Canadian construction activity surged to a record in January, as both the residential and non-residential sectors defied expectations. The surprising star of the report was Ontario, where the value of manufacturing, hospital, utility and office building permits rocketed higher. Statistics Canada said that in all, municipalities issued C$6.31-billion worth of building permits, an 11.3% jump from December, and above the previous high of C$6.29-billion reached last October, reported The Globe & Mail. Full Story

CONSTRUCTION & DESIGN

The International Code Council Board of Directors has issued a policy position on Green Building/Sustainable Communities to emphasize its commitment to social responsibility and expand the boundaries of public safety. ICC is committed to educating our members on green building and participating in activities with other organizations that will assure green building practices are sustainable and safe. Full Story

The National Association of Home Builders and the International Code Council are collaborating to bring uniformity to sustainable building practices and will undertake the development and publication of a residential green building standard. Full Story

"The future of school construction is more than just dollars and cents," said Ronald Bogle president and CEO of the Washington, DC-based American Architectural Foundation in his address at the Schools of the 21st Century Symposium in New Orleans. Booming enrollments and decaying buildings have school administrators looking for economical ways to build, but he says there’s more to it than that. "I think we design schools that support our objectives to educate children, to help strengthen neighborhoods, to be more than just a shelter but something that can transform the experience of students, teachers, and others," Bogle says. And he says that is often more cost-effective in the long-term, reported Architectural Record. Full Story

The amenities and technology featured in higher-ed facilities will play a major role in attracting and retaining the best students, staff, and faculty, according to a recent feature article in Buildings magazine. Full Story

The U.S. Environmental Protection Agency, along with GreenBuildingBlocks.com, the Building Materials Reuse Association, the American Institute of Architects, and West Coast Green, announce the first Lifecycle Building Challenge, a national competition to develop green building strategies and designs that reduce waste and conserve resources by facilitating adaptation, disassembly and reuse. The goal of the challenge is to inspire the green building movement to look at buildings as future stocks of resources by developing innovative practices and products to maximize material recovery and reduce both environmental and economic costs, reported Buildings.com. Full Story

SECURITY & SAFETY

The Joint Commission for the Accreditation of Healthcare Organizations (JCAHO) will expand the scope of the Life Safety Code specialist, effective Jan. 1, 2008, to include adding a Life Safety Code Specialist to the survey team for one day for all critical-access hospital and hospital surveys. For hospitals and critical access hospitals with more than 750,000 square feet, Life Safety Code Specialist surveys will be extended from one day to two days in 2008, reported Facilitiesnet.com. Full Story

GOVERNMENT AFFAIRS

The U.S. General Services Administration (GSA) announced that as new leases are signed and existing leased space altered, it will incorporate a new accessibility standard at its over 7,100 leased locations to increase access to facilities designed, built, altered or leased with federal funds. The new Architectural Barriers Act Accessibility Standard is a result of a recent evaluation by the U.S. Access Board of the various standards and its decision to merge them into a single standard for federal buildings. The standard addresses access to joint-use areas, accessible routes to primary function areas, restrooms, and other space and elements. Full Story

The Department of Justice released new technical assistance materials to help state and local governments comply with the Americans with Disabilities Act (ADA). The materials are part of the "ADA Best Practices Tool Kit for State and Local Governments," reported Facilitiesnet.com. Full Story For more information visit the Justice Department's ADA site at www.ada.gov.

The Federal Emergency Management Agency has approved a $14 million program to help local governments implement the Louisiana’s tougher new building code. The state homeland security office — the Governor’s Office of Homeland Security and Emergency Preparedness — will administer the program developed by the Louisiana Recovery Authority and funded by federal Hazard Mitigation Grant Program monies, reported the Advocate (Baton Rouge). Full Story

As South Carolina moves to adopt the latest editions of the International Building Code (IBC) and the International Residential Code (IRC), proposed amendments to the 2006 IRC would allow some homes to be built below the minimum strengths prescribed in this national consensus standard. Full Story

SMALL BUSINESS NEWS

Health Savings Accounts

The Internal Revenue Service has issued guidance regarding how employers can rollover for their employees their health Flexible Spending Arrangements (health FSAs) and Health Reimbursement Arrangements (HRAs) into Health Savings Accounts (HSAs).

The Tax Relief and Health Care Act of 2006, Public Law No. 109-432, enacted December 20, 2006, allowed employers to amend their health FSAs or HRAs, with balances on September 21, 2006, for a one-time roll over to a HSAs by 2012. The guidance clarifies the requirements for making these rollovers, which must be made directly to the custodian or trustee of the HSA.

Under the guidance, a health FSA with a grace period or HRA must be amended and a rollover selected by an employee before year's end. The balance amount must be transferred to the HSA by March 15 of the following year. The ability to make these transfers will facilitate the transition to an HSA-eligible health plan when employees are covered by an HRA or FSA.

Innocent Sellers

Representatives Dan Boren (D-OK) and Steve Chabot (R-OH) have re-introduced an Innocent Sellers Fairness bill, H.R. 989. This is the legislation that would take innocent sellers (e.g. retailers, dealers and other) out of product liability cases as long as the seller didn't do anything to change the nature of the product. Advocates will be trying to line up more co-sponsors. Convincing House Judiciary Committee chairman John Conyers (D-MI) to consider the bill will be the next big challenge.

FOUNDATION NEWS

Foundation Meets with Staff of Congressman Steve Rothman (D-NJ)

Representatives of the Foundation for the Advancement of Life Safety and Security met with a senior legislative staffer for Representative Steve Rothman (D-NJ) on Monday March 6th. Congressman Rothman is the sponsor of the School Safety Enhancements Act of 2007 (H.R.1097) for the House. Senator Boxer (D-CA), who we met with in mid-December is the sponsor of the bill in the Senate (S.677). The meeting was to provide the congressman's office with insight into the role door and hardware professionals play in life safety design and inspection for our nation's schools.

Click here to view the a press release from Representative Rothman's office announcing the bill.

Click here to view the a press release from Senator Boxer's office announcing the bill.

Click here to view actual text of the bill along with cosponsors

Code Official's Fire Door Inspection Class Set for April 10th

Over fifty (50) fire and building code officials are scheduled to attend the 'Fire-Rated Doors and Hardware, A Guide to Field Inspections' class in Fort Myers, FL on Tuesday April 10th. The class is a opportunity for officials to gain a better understanding of the new fire door inspection requirements required by the 2007 edition of NFPA 80.

Keep up-to-date with the latest Foundation news and programs, please visit www.lifesafetysecurity.org

DHI NEWS

BREAKING DHI NEWS!
Fire Door Annual Inspection Program!

Join DHI for the release of the Fire Door Annual Inspection Program at the 32nd Annual Conference and Exposition in Nashville, TN, October 13th to 20th, 2007.

The inaugural presentation of this program will include education sessions on the new inspection process guidelines as well as the certification process for companies and individuals. The Forum for the Future, sponsored by the Foundation for the Advancement of Life Safety and Security, will address business issues that will speak to the insurance, staffing, marketing and financial ramifications of this initiative.

Watch www.dhi.org for further details!

DHI's Call for Nominations!

Recognition? Who needs it? The industry's BEST, that's who! At DHI, we continue to recognize and distinguish exceptional individuals and chapters who have made significant contributions to the industry, and DHI in particular. We encourage all members to consider nominating deserving persons in any or all of the award categories. These outstanding professionals, who have committed their time and talents for the betterment of our industry, will join the ranks of others who have given of themselves and been recognized by their peers for their exceptional dedication.

Please complete and return the nomination forms you will be receiving shortly in the mail to DHI on or before May 31, 2007. The awards will be presented at the DHI Conference and Exposition in October in Nashville, TN.

INDUSTRY EVENT — 2003 IBC - Solving Means of Egress Issues In Commercial Buildings

DHI's Arizona Chapter is hosting a full day code seminar on Friday, March 30th, 2007. This seminar is designed to provide knowledge of building code requirements for means of egress. The class will include problem solving from a set of plans for a 4-story commercial building related to each egress issue. Priced at only $120, this is an affordable way to hone your understanding of the codes used for our industry. The seminar will be followed by DHI Arizona Chapter's annual golf tournament on Saturday, March 31st, 2007.

Reservations are on a first come, first served basis and MUST be made by March 14th, 2007 to hold space and receive workbooks.

For a registration form, go to www.arizonadhi.org. Questions? Contact David Ortega directly at 602-882-0398 or e-mail DVOAHC@aol.com.