A rule requiring federal contractors and subcontractors to use the Department of Homeland Security U.S. Citizenship and Immigration Services' E-Verify system to verify their employees' authorization to work in the U.S. is now in effect.  The rule applies to federal solicitations and contract awards government-wide beginning September 8.

The FAR Council issued the final rule in November 2008.  In response to a legal challenge to the rule and in order to give the new administration time to fully review the matter, the government agreed to suspend the rule on three separate occasions, but, in a July 8 statement, DHS Secretary Janet Napolitano announced that DHS will "push ahead with full implementation" of the rule without further delay.

The rule requires the insertion of a new clause in certain federal contracts and subcontracts.  Prime contracts below the simplified acquisition threshold of $100,000 and those with performance terms of less than 120 days are excluded.  The clause requires the contractor to use E-Verify to confirm employment eligibility of all new employees hired during the contract term and all current employees assigned to work on a federal job within the U.S.  It also allows, but does not require, the federal contractor to use E-Verify to confirm eligibility of all employees, regardless of whether they are assigned to work on a federal job.  Currently, use of E-Verify to confirm anyone other than a new hire (including applicants and current employees) is prohibited. 

The rule applies only to employers with direct contracts with the federal government and, via a flow-down requirement, to their subcontractors.  It does not apply to employers working only on federally funded projects or on other projects not under contract with a federal agency.

Although the litigation continues, contractors are advised to carefully review all new solicitations and contracts for federal projects and comply with any E-Verify requirements at this time.  AGC will continue to monitor all related litigation and legislation and will report on significant developments.

Click here for the E-Verify Supplemental Guidance for Federal Contractors issued by USCIS on September 8.  Click here for DHS's list of Frequently Asked Questions (FAQ's) for Federal Contractors and E-Verify.  Click here for more information about critical components of the rule.  Click here for information about free webinars on the E-Verify program.

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.

Recognize the advantages and disadvantages of Integrated Project Delivery (IPD) and identify best practices at AGC's latest IPD webinar.

The webinar will include a discussion and explanation of IPD, the advantages and disadvantages of IPD from the Owner perspective, IPD best practices and why Owners choose multi-party agreements.

All registrants will receive a free sample of the ConsensusDOCS 300 Tri-Party Agreement and access to the "IPD: Lessons from the Trenches" webinar recording (a retail value of $179.00). This program offers .2 IACET CEUs, and 1.5 AIA LUs. Register today at www.agc.org/ipdwebinar.

AGC has compiled all of its project delivery resources into one document to provide an easy, "one stop shop" reference for its members.  From contract documents and bookstore offerings to webinar and web resources…you can take a look at AGC's entire project delivery library by clicking here or going to www.agc.org/projectdelivery.  You will see that each resource has an Internet link bringing you directly to that particular product.

For more about project delivery, please visit www.agc.org/projectdelivery.

The AGC Project Delivery Committee released Qualifications Based Selection of Contractors on August 24.  Qualifications Based Selection (QBS) is a procurement method in which the final criteria for selection are qualifications and demonstrated competence without consideration of price/cost until contract negotiation.

QBS of contractors is emerging as one response to the demands of the current marketplace, wherein owners are increasingly seeking collaborative early contractor involvement.  This white paper explores the trend of QBS of contractors, discusses QBS benefits and challenges, considers how QBS works with various project delivery systems and offers owner suggestions for QBS best practices.   

Qualifications Based Selection of Contractors was developed by the QBS Working Group of the AGC Project Delivery Committee and can be found at www.agc.org/projectdelivery, or by clicking here.

Join leaders from top building construction firms, owners, specialty contractors and service and supply companies at the next AGC Building Contractors Conference at the Caribe Hilton in downtown San Juan, Puerto Rico January 20-22, 2010.

Building construction professionals, owners, specialty contractors, service and supply firms and anyone who wishes to contribute to the industry and benefit from valuable information and best practices cannot afford to miss this conference.  The practical guidance and networking opportunities found at the Building Contractors Conference are crucial and necessary in these tough times.

Early-Bird registration is now open, and registration discounts are available to first-time attendees as well as multiple attendees from the same firm.  For more information on the conference and to register, please visit www.agc.org/bcc.

Interested in sponsoring the AGC Building Contractors Conference and showcasing your firm before owners and leaders of this market? See the "Sponsors" tab here for available sponsorship opportunities, or contact Mike Stark at starkm@agc.org for more information.

A September 9 report from the latest Beige Book, a summary of informal soundings of business conditions, "indicate that economic activity continued to stabilize in July and August."  The districts are referred to by the name of their headquarters city. Relative to the last report, Dallas indicated that economic activity had firmed, while Boston, Cleveland, Philadelphia, Richmond, and San Francisco mentioned signs of improvement. Atlanta, Chicago, Kansas City, Minneapolis, and New York generally described economic activity as stable or showing signs of stabilization; St. Louis remarked that the pace of decline appeared to be moderating. Most Districts noted that the outlook for economic activity among their business contacts remained cautiously positive.

The Beige Book was also a bit more upbeat about homebuilding but not about conditions in nonresidential construction and real estate. Residential construction remained at low levels overall, although Chicago and Dallas reported a small increase in activity. Reports on commercial real estate markets indicated that demand for space remained weak and that construction continued to decline in all Districts. Atlanta, Philadelphia, Richmond, and San Francisco reported that vacancy rates increased, while rates held steady in the Boston and Kansas City Districts and were mixed in New York. Boston, Dallas, Kansas City, Philadelphia, and Richmond commented that the demand for space remained weak. Commercial rents declined according to Boston, Chicago, New York, Philadelphia, and Richmond. Rent concessions were reported in the Richmond and San Francisco markets, and Richmond noted that some landlords had postponed property improvements in an effort to conserve cash. Construction remained at very low levels, with modest improvements noted in public construction in the Chicago, Cleveland, and Minneapolis Districts.

The reports are consistent with what nonresidential contractors have been telling AGC: outside of stimulus money for highway construction and a few other niches, conditions have not brightened at all.

To report what you are encountering, email simonsonk@agc.org.

For more information on AGC Chief Economist Ken Simonson's weekly economic newsletter, visit http://www.agc.org/cs/news_media/newsletters.

CEO Update, which tracks people in association and non-profit executive careers, listed AGC's CEO Steve Sandherr as a top CEO. AGC was the only construction association represented on the list of 42 CEOs.

The publication asked CEOs in the association world to nominate their peers on the basis of legislative success, leadership ability, skill in raising a group's profile or managing a crisis, history of building coalitions and reaching consensus and membership excellence in areas such as meetings, education and certification.

For more information, contact Brian Turmail at (703) 837-5310 or turmailb@agc.org.

ConsensusDOCS is pleased to provide a free podcast regarding the NEW ConsensusDOCS 725 - Standard Agreement Between Subcontractor and Subsubcontractor, the first and only standard agreement designed specifically for subsubcontracting needs.  The ConsensusDOCS 725 includes provisions that are well suited to the somewhat simpler relationships that subcontractors typically share with subsubcontractors:

• Six-page agreement that excludes unnecessary provisions
• Similar terms to upstream agreements on important items such as timing of payment
• Flexible provisions for the incorporation of exhibits and other documents

Please visit http://www.ConsensusDOCS.org/podcasts/news_podcasts.html to download this free podcast.  ConsensusDOCS are the only standard contract documents endorsed by 23 leading construction industry associations. 

For more information on ConsensusDOCS, please visit www.AGC.org/cs/contracts or contact Carrie Ciliberto at cilibertoc@agc.org or (703) 837-5367.

The Construction Financial Management Association (CFMA) is the latest endorser of ConsensusDOCS standard construction contract documents, bringing the total number to 23 leading construction industry organization endorsements. 

CFMA is "The Source & Resource for Construction Financial Professionals" and the only nonprofit organization dedicated to serving the construction financial professional.  Established in 1981, CFMA's General Members include contractors, developers, construction managers, architects, engineers, principals and material and equipment suppliers.  Associate Members include accounting, insurance, surety, software, legal and banking specialists who serve the construction industry.  CFMA has more than 7,000 members in 88 chapters throughout the U.S.

We are pleased to welcome our newest member, CFMA, and look forward to a long and rewarding relationship!

For more information on ConsensusDOCS, please visit the AGC Contract Documents website or contact Carrie Ciliberto at cilibertoc@agc.org or 703-837-5367.

AGC's new online recycling toolkit will help contractors recycle construction and demolition (C&D) debris and reuse industrial materials in new construction projects.  AGC worked with the U.S. Environmental Protection Agency (EPA) and the Industrial Resources Council (IRC) to make this tool available.

The recycling toolkit provides information on starting a recycling program, links to web pages to find C&D materials reuse or recycling facilities, examples of construction waste management plans and how to find industrial materials for use in construction projects.  Interactive graphics demonstrate how recycled industrial materials could be used in the new construction of buildings and roads.  Toolkit users can learn from their peers through case studies, and members are welcome to submit case studies and suggest other resources.

According to EPA estimates, wastes from new construction, renovation, and demolition projects generate about 25 percent of the total U.S. solid waste volume.  EPA estimates that 170 million tons of building-related C&D materials were generated in the U.S. in 2003.  Of that quantity, as much as 48 percent was diverted from landfills.  EPA has not published estimates of waste generation and recycling on highway projects; however, informal estimates have indicated that highway contractors recycle and reuse large amounts of asphalt and concrete associated with their projects.  On highway and road projects, these materials often are processed and reused on the very same job site.  In practice, only asphalt, steel, metals and concrete have been recycled or reused in significant volumes in the U.S., because there are established secondary markets for these used materials.  Green building rating systems and initiatives promote recycling and reuse by allotting points towards a higher score or level of certification that projects can achieve by recycling and incorporating recycled materials.

The recycling of construction and demolition debris is one way that contractors can help reduce greenhouse gas (GHG) emissions. A significant amount of energy is expended (and associated GHGs are released) during the harvesting, manufacturing and transportation of materials used in construction. Emissions are expended during the process of recycling and reusing materials; however when these materials are reused or recycled, the GHG emissions that would have occurred during virgin material harvesting, processing and manufacturing are avoided. EPA estimates that for every ton of asphalt recycled from construction an associated 0.03 metric tons of carbon dioxide (CO2) emissions are avoided. Since approximately 139 million tons/year of asphalt are recycled in the U.S., the result is that 4.2 million tons of CO2 emissions are avoided.  About 140 million tons per year of concrete are recycled, which equals 1.4 million ton of CO2 emissions avoided, and 40 million tons of steel are recycled each year, which amounts to 71.6 million tons of CO2 emissions avoided. 

For more information, contact Melinda Tomaino at tomainom@agc.org or (703) 837-5415.