The U.S. Department of Labor (DOL) recently released an updated version of its Employment Law Guide, an online publication for workers and employers that describes the major employment laws administered by the department.

According to a press release issued by DOL on November 30, 2009, the Guide is said to be "especially helpful for employers without dedicated legal or human resources staff" and "helps small businesses develop wage, benefit, safety and health, and nondiscrimination policies."

The updated version addresses recent and important changes in employment laws, including:

• the increase in the federal minimum wage;
• expansion of the Family and Medical Leave Act;
• child labor regulations in the agriculture industry; and
• changes to the Defense Base Act, which provides workers' compensation benefits to civilian employees working outside the United States on U.S. military bases or under certain contracts with the U.S.

Designed to be used along with DOL's FirstStep overview advisor, an online system that allows employers to determine which federal employment laws apply to them by answering a few simple questions about relevant variables, each chapter in the Guide "addresses each of the laws in the FirstStep advisor, outlines coverage under the law, its basic requirements, employee rights, recordkeeping, reporting, notice and poster requirements, penalties and sanctions for non-compliance, relation to state, local and other federal laws, and contact information for further assistance."  Both the Employment Law Guide and FirstStep overview advisor are available at www.dol.gov/elaws.

Though $1 billion in construction was recently completed at the Indianapolis International Airport, planners are already beginning to discuss their next steps for the construction of an "aerotropolis," a mini-city that would be composed of businesses, retail, and lodging.  The aerotropolis, which is popular in Asia and Europe, has the potential to attract global headquarters of business and influence communities for 20 miles.

The project would not commence for many years, but planners are already interviewing consultants to discuss future development and use of surrounding airport land, as well as the purchase of more land in the future.

To read the entire article from the Indianapolis Star, click here.

March 17-20, 2010 | Orlando, FL

Join us March 17-20 in Orlando for AGC's 91st Annual Convention and Pavilion. As the construction industry continues to battle tough economic conditions and legislative challenges, AGC's Annual Convention provides the only opportunity for contractors to get all the latest information on economic forecasts, rules and regulations, and best practices, and to hear first-hand from others on what they are doing to survive and thrive in this challenging environment.  For a complete list of Building Division Sessions, please click here.

The AGC 91st Annual Convention and Pavilion will offer  Don't miss the following highlighted Building Market Sessions: "State of the Union: A Forum with the Building Trades," "Economic Outlook Forum Luncheon: Will This Year Be a Perfect '10?," "Introduction to BIM and Integrated Project Delivery," and "BIM 101: An Introduction to Building Information Modeling."  Register today and learn more at http://convention.agc.org.

A recent Reed Construction Data article released data from the RCD/RSMeans Commercial Construction Expansion Index, which indicates that the volume of nonresidential construction is expected to increase in 2010.  This data is based on projects in planning or currently under construction, and examines construction on a local level.  On the interactive Expansion Index, metro areas are defined as either rapidly growing, expanding or shrinking, based on a twelve month projection.

Though volume is projected to increase, Reed also stated that the recession will continue through 2010.  Lower than expected building operating income projections, the inability to obtain financing, and further decline in occupany rates are a few of the reasons the recession is expected to continue.

To read the article on commercial construction volume, please click here.

To view the RCD/RSMeans Commercial Construction Expansion Index, click here.

For the article on the possible continuation of the recession, please click here.

On February 1, Congressmen Paul E. Kanjorski (D-Pa.) and Ken Calvert (R-Calif.), along with 77 other bipartisan House members, sent a letter to Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernake suggesting they take further steps to ensure the health of the commercial real estate (CRE) market.

The letter urges the regulators to help stabilize the CRE market before it further effects the general economic recovery.  The lawmakers outline the following three action steps in their letter: 1. Create a clear method for evaluating the effectiveness of CRE loan modification guidance; 2. Institute a system to differentiate performing vs. non-performing loans, and any other steps needed to provide lending institutions with more confidence in assessing CRE loans; and 3. Make clear public statements encouraging lenders to continue to make credit available for performing assets as a means of restoring confidence and long-term value in the CRE market.

For more information, and to read the entire letter, please click here.

Public agencies have been reporting for more than a year that they are paying less for school buildings and other facilities than they had been. But few governments seem to have stepped up their construction programs to take advantage of the price breaks.

Montgomery County, Maryland, just outside of Washington, D.C., is an exception. "Montgomery County's government would get a $4 billion jolt over the next six years under a capital spending plan detailed Friday by County Executive Isiah Leggett," the Washington Post reported on January 16. "The proposal represents a nearly 7 percent boost in spending…With interest rates low and construction companies hungry for work, Montgomery officials said, the county should take advantage of the community's general affluence to press ahead with its capital priorities, especially those affecting education….Constructing a new Paint Branch [High School, which began this month], for example, is expected to cost $20 million to $30 million less than what was spent on a similar school that was built recently, schools officials said. The county can build an elementary school with the difference, they said."

An AGC survey of nearly 700 contractors, released on January 20, confirmed that the decline in building costs reflects more than a dip in materials prices. About 81 percent of the respondents said they cut profit margins for their 2009 bids, and 11 percent were willing to take a loss. That's a great opportunity for both public and private owners who are willing to act promptly. But most contractors cannot afford to operate at a loss for long. By later this year, contractors will either be out of business or charging more.

The drop in materials costs may soon run its course, as well. The producer price index (PPI) for inputs to construction industries, a weighted average of materials used in all types of projects plus items such as diesel fuel that are consumed during construction, rose 0.2 percent in December before seasonal adjustment and 0.4 percent from a year earlier, the Bureau of Labor Statistics (BLS) reported today. The December-to-December increase was the mildest since 1999, but December was also the first month since February that the construction PPI did not decline from year-ago levels.

Meanwhile, the PPI for new school building construction, which measures contractors' overhead and profit as well as materials costs, fell 2.4 percent from December 2008 to December 2009. That was the first 12-month drop since the index was introduced in 2006. In other words, contractors are still lowering their prices but are starting to pay more for the inputs they use - an unsustainable squeeze play.

Owners should take heed: the double delight of plentiful bidders and falling materials prices appears poised to end soon. If they want the most value for their construction dollar, now is the time to buy.

For more information, contact Ken Simonson at simonsonk@agc.org.