On June 22, AGC submitted to the Office of Management and Budget (OMB) written comments for consideration in the interim final regulation on federally-assisted projects. These projects would include building, highway and municipal and utility projects funded by the stimulus. 

In addition, OMB that same day published Implementing Guidance for the Reports on Use of Funds Pursuant to the American Recovery and Reinvestment Act of 2009 ("Recovery Act"). This guidance details the reporting requirements included in Section 1512 of the Recovery Act for recipients of grants, loans and other forms of assistance. The reports required by Section 1512 will be submitted by recipients beginning in October 2009 and will provide information to the government, such as:

• Who is receiving Recovery Act dollars and in what amounts?
• What projects or activities are being funded with Recovery Act dollars?
• What is the completion status of such projects or activities and what impact have they had on job creation and retention?

The reporting framework in the referenced guidance has been updated and enhanced to capture additional spending data from prime recipients and sub-recipients of federal financial assistance Recovery Act awards. Further, OMB has deployed a nationwide data collection system at the website www.FederalReporting.gov that will reduce the information reporting burden on recipients by simplifying reporting instructions and providing a user-friendly mechanism for submitting required data.

To read AGC's comments to OMB, click here.
To read the OMB Memorandum and Guidance Document click here.
To view the Recipient Reporting Data Model - Template, Data Dictionary, XML Schema, click here.
To read the List of Programs Subject to Recipient Reporting, click here.

For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

At the end of June, the U.S. House passed H.R. 2454, the American Clean Energy and Security Act, by a vote of 219 to 212 (8 Republicans supported the bill, and 44 Democrats voted against it).  While elements of the legislation could create jobs by inducing demand for energy efficiency improvements to buildings and alternative energy generation, no one is certain of the true impact on the economy.  AGC believes that the bill goes too far too fast and that Congress has not adequately mitigated the impacts.

Policymakers have acknowledged that the "cap and trade" program in the bill would increase electricity costs with varying regional effects.  A climate change cap and trade bill would significantly increase the cost of energy used in producing construction materials and powering construction equipment.  The bill also includes provisions giving free rein to the U.S. Environmental Protection Agency to regulate small stationary emitters and to implement standards for a variety of mobile sources used in construction, including new heavy duty trucks and off-road equipment.  The increased costs and new regulations would ultimately decrease demand for construction at a time when the U.S. economy can least afford it, especially when one in every five unemployed workers is a construction worker. 

AGC appreciates the response by individuals in the construction industry that answered the call to action and sent over 2,000 messages to Congress in opposition to the bill.  The legislative debate will move to the Senate where a vote could occur as early as September. 

The Senate will likely refer to, or use, the House bill in drafting their legislation.  Meanwhile, the Committee on Energy and Natural Resources approved the American Clean Energy Leadership Act (ACELA) on June 17, 2009.  Some of the ACELA provisions are similar to the House bill, but it does not yet address cap and trade of greenhouse gases, which the Senate Environment and Public Works Committee may consider as early as this month.  The resulting legislation from the Senate will need to secure passing votes in both houses of Congress before a final bill is sent to President Obama to sign.

AGC urges all members and Chapters to weigh in with their Senators and urge them to oppose the House bill as written.  For more information and to send a letter to your Senators, please use AGC's Legislative Action Center.  

For more information, contact Karen Lapsevic at (202) 547-4733 or lapsevick@agc.org.

On August 5, 2009 from 1:00 to 2:00 p.m. ET, ConsensusDOCS will host a webinar titled Introducing the Subsubcontract.  The expert panel will explain the new ConsensusDOCS 725, the industry's first and only standard agreement designed specifically for use between a subcontractor and subsubcontractor.  The panelists will discuss the unique benefits and challenges of using a simplified agreement to help you understand provisions that are well-suited to the somewhat simpler relationships that subcontractors typically share with subsubcontractors, including:

• Value in adopting a fair form agreement tailored to the subsubcontract relationship

• Flexible provisions for the incorporation of exhibits and other documents

• Coordinating flow-down clauses and payment terms with other Upstream Agreements

AGC members pay just $99 ($229 retail price). 

Please contact Megan McGarvey at mcgarveym@agc.org or 703-837-5369 should you have questions.

In recent weeks, the Department of Homeland Security (DHS) has begun fulfilling its promise of investigating employers who hire illegal workers by initiating two major steps: conducting audits of employers' I-9 forms and preparing for increased monitoring of the E-Verify System.

As mentioned in the AGC article DHS to Focus on Prosecuting Employers Who Hire Illegal Workers, the Immigration and Customs Enforcement Division of DHS (ICE) has notified several hundred companies of the intent to audit their I-9 forms.  Employers chosen for the administrative audit received a Notice of Inspection (NOI) with instructions to present all original I-9 forms and supporting documents within three (3) days along with the company's hiring records.  According to a July 1 press release, ICE issued these notices to 652 businesses nationwide, compared to 503 notices issued in all of 2008.  In the press release, ICE identified the 652 employers as those resulting from "leads and information obtained through other investigative means."  Review AGC's Seven Critical Steps for Surviving an I-9 Audit for guidance once an NOI is received.

ICE isn't the only division of DHS tasked with handling employer relations when it comes to immigration compliance.  The U.S. Citizenship and Immigration Services division of DHS (USCIS) has announced its plans to use a new system to monitor the use of the E-Verify system.  The new Compliance Tracking and Management System (CTMS), which is intended to alert employers of potential issues and misuse of E-Verify in order to correct any deficiencies, will be used to identify such things as the fraudulent use of Alien numbers, wrongful employee terminations due to tentative non-confirmations, verification of applicants instead of employees, verification of only some employees and failure to use E-Verify consistently, to name a few.  Although USCIS does not have the authority to investigate and prosecute employers or workers based on its findings through CTMS, USCIS may share the information it gathers with ICE as well as other law enforcement agencies in order to build a case against an employer.

Employers are encouraged to be proactive in developing a system for using E-Verify before a circumstance arises.  A first step is to review the basic guidance provided by USCIS with expert counsel to outline a specific set of best practices, such as:

·        Providing E-Verify basic compliance training and I-9 training for all E-Verify users;
·        Running and evaluating reports on E-Verify use on a regular basis and sharing the information with an individual who is not involved with E-Verify operations;
·        Having outside auditors and legal counsel review the process to assess exposure and concerns;
·        Establishing and maintaining safeguards to prevent use of the E-Verify process for unlawful discrimination;
·        Creating and implementing procedures for handling a possible E-Verify review by USCIS, including contacting legal counsel; and
·        Conducting integrated, annual I-9 and E-Verify internal audits.

As immigration enforcement and monitoring becomes a more pressing concern for companies across the country, it is important for employers to become aggressive in developing and executing Best Practices for staying compliant with current immigration laws.

Some information in this article is provided by Greenberg Traurig, LLP. For more information, contact Denise Gold at (703) 837-5326 or goldd@agc.org.

The Department of Homeland Security (DHS) on July 8 announced the Administration's intent to "push ahead with full implementation" of a rule requiring federal contractors to use the E-Verify system to verify employees' authorization to work in the U.S.  The E-Verify rule will apply to federal solicitations and contract awards government-wide beginning September 8.  At the same time, DHS announced its intent to issue a new regulation rescinding a rule establishing procedures for employers to follow upon receipt of a "no-match letter" from the Social Security Administration (SSA) or DHS.

For background information on E-Verify and No-Match, click here.

AGC will monitor all related litigation and legislation and will report on significant developments.

Meanwhile, further guidance on immigration compliance is available in an MP3 download of a live educational session held at AGC's Annual HR Professionals Conference in June 2008.  An immigration law update will also be provided at AGC's next HR Professionals Conference, which will take place October 27-29, in Atlanta, GA.  Click here for conference details and registration.  For additional resources and for information on immigration reform efforts, click here.

For more information, contact Denise Gold at (703) 837-5326 or goldd@agc.org.

The theme for the Fall AGC BIMForum meeting, to be held on October 8-9, 2009 in Philadelphia, Pa., will be "BIM as the Evolving Standard of Care: Driving Process Transformation for Designers, Contractors and Owners."  The BIMForum Leadership is submitting this call for proposals to solicit ideas for presentations that explore the depth and breadth of this topic.  Click here for more details about the Fall AGC BIMForum Call for Presentations!

U.S. Secretary of Education Arne Duncan announced July 1 that more than $2.7 billion of the State Fiscal Stabilization Fund under the American Recovery and Reinvestment Act (ARRA) of 2009 is being made available early to help states as they face increasing budgetary pressures.

According to the Department's press release, "State Fiscal Stabilization Funds (SFSF), which total more than $48 billion, represent nearly half of the $100 billion set aside for the Department of Education as part of the stimulus bill.  The SFSF is intended to augment state education budgets and drive reform.  Of the $48 billion available in SFSF, approximately $8 billion is designated as part of a government services fund which is intended to provide states with maximum flexibility in addressing budget shortfalls and is available for education, school modernization, public safety or other government services."  Click here to read the entire release.

In an All-Agency Memorandum issued on May 29, 2009, the U.S. Department of Labor (DOL) Employment Standards Administration's Wage and Hour Division (WHD) provided guidance to contracting agencies on the applicability of Davis-Bacon labor standards to federal and federally-assisted construction work funded in whole or in part under the American Recovery and Reinvestment Act of 2009 (ARRA).  The memorandum provides a summary of the prevailing wage labor standards applicable to construction projects funded under Division A of the ARRA, highlights federal agencies' responsibilities in implementing Davis-Bacon labor standards, and provides links to online resources for additional information.

For more information, click here, or contact Denise Gold at (703) 837-5326 or goldd@agc.org.

Monday, July 27 - 4:00-5:00pm ET 

Join AGC and The Family Business Institute for a free webinar and learn how you can better your business and life through lessons learned from a case study done by the Harvard Business Review.

In this one hour webinar, gain insight from other CEOs on:

•  Business Development - from hiring the right people to setting and achieving goals
• Marketing Planning - a subset of your overall business plan and what works best for the construction market
• Supporting Business Development and Marketing - what else should be top priorities in a tough market

To learn more and register for this free webinar click here!

Nearly 100 attendees participated in the AGC Building Contractors Conference held June 10-13, 2009, at The Homestead in Hot Springs, Va.  This Conference brought together many of the top building construction firms, specialty contractors, service and supply companies and owners to focus on the theme "Guiding Your Firm Through Challenging Economic Times" through informative presentations, interactive panels and dynamic discussions.  Many presentations from the conference are now posted at www.agc.org/homestead. 

Presentations included:

• The Current Health and Future Outlook of the Capital and Credit Markets-Rob Nichols, The Financial Services Forum
• Strategy in the Eye of the Storm-How Contractors Can Weather the Storm-Scott Winstead, FMI Corporation
• Economic Stimulus: Impact and Implementation-Chuck Hardy, U.S. General Services Administration & Paul Parsoneault, U.S. Army Corps of Engineers
• Tools for Tough Times Panel
• What Contractors Can Do To Reduce Their Carbon Footprint-Christopher Gorthy, DPR Construction, Inc.
• Not Business as Usual-Changes to Labor Laws are Here…With More on the Way-Steve Shapiro & Dirk Haire, Holland & Knight
• Building Information Modeling: An Owner's Perspective-Allen Ware, Intel Corporation &  Mike Pape, University Mechanical & Engineering Contractor (UMEC)
• Prepared for the Worst: Contingency Planning for a Project Shutdown and/or an Owner Default-Milton Smith, McGriff Seibels & Williams, Inc.
• The Current State of the Surety Industry-Todd Loehnert, Wells Fargo Insurance Services
• Utilization of the JA Biz Town to Enhance the Construction Industry's Education Alternatives-Tom Weise, Intel (Retired) & Joyce Richards, Junior Achievement, Arizona

Attendees also had several opportunities to participate in committee meetings and network with their colleagues at evening receptions, continental breakfasts, a keynote luncheon and the golf tournament.  

Be sure to save the date for the next AGC Building Contractors Conference taking place January 20-23, 2010, at the Caribe Hilton in San Juan, Puerto Rico.  More information and registration will be available soon.

AGC would like to thank the following Platinum and Associate Sponsors for their support of the AGC Building Contractors Conference: CMiC, National Association of Surety Bond Producers, Advenser, Akerman Senterfitt, Bama Painting and Wallcovering and SkySite Aerial Photography.

For more information, contact Mike Stark at (703) 837-5365 or starkm@agc.org.