The complete program of articles and PowerPoint slides from the highly successful ABA Forum on the Construction Industry Conference are now available here.  The ABA program focused on ConsensusDOCS contracts and garnered a record-setting attendance. 

More than 500 top construction attorneys and professionals from across the country attended the sold out educational event.  The posted materials provide in-depth analysis that will foster a deeper understanding of the transformation that is taking place in the area of construction contracts.

For more information about ConsensusDOCS, visit www.agc.org/contracts or call 1-866-925-DOCS (3627).

AGC has made it easier for Chapters and members to determine if a Boys & Girls Club in their community is looking for Build Up! kits by creating an interactive map on our web site.

Potential sponsors can simply click on their state to find out which communities have requested kits, and how many kits each community needs. Sponsors may then send a message to Liz Elvin to obtain the club’s mailing address, and order Build Up! kits through the online bookstore.

So far, more than a dozen Chapters and members have sponsored 50 kits for Clubs. There are Clubs across the nation seeking sponsors for more than 300 Build Up! kits and AGC is still receiving new requests.  By providing kits for all 350-plus Clubs, AGC can promote the construction industry to more than 10,000 young people nationwide. Boys & Girls Clubs serve nearly 5 million youths from more than 4,000 primarily inner-city clubhouses.

Each kit costs $199 plus shipping and may be shipped directly to the requesting Club or to the sponsor to deliver in person. Additionally, AGC will send to the Club a letter informing them of the sponsoring AGC member or Chapter.

For more information, contact Liz Elvin at (703) 837-5389 or elvinl@agc.org.

AGC recently introduced new affinity programs with the Family Business Institute and BP to offer services and discounts to members.

Family Business Institute
Under an exclusive agreement with The Family Business Institute (FBI), experts in family-owned and closely-held businesses, AGC member company executives have the opportunity to participate in professionally facilitated CEO Performance Roundtables. 
 
The CEO Performance Roundtable is an industry-specific gathering of 7-10 CEOs where, with the assistance of professional facilitators, non-competing leaders can openly review their companies and share information in a focused effort to build breakthrough success for themselves, their families, their employees, and their customers.
 
To learn how to join in the FBI Performance Roundtable Program, contact FBI’s Program Administrator Jack Ford at jack.ford@familybusinessinstitute.com or at 877-326-2493, ext. 231. 

BP
AGC has recently signed an agreement with BP to offer fuel savings to AGC members. The BP Business Solutions program offers up to six cents savings on every gallon of fuel purchased by AGC member companies.  Tiered rebates begin at just one and a half cents/gallon for up to 499 gallons, and six cents/gallon for 10,000+ gallons at BP locations nationwide.  In addition, members may save one and a half cents/gallon on fuel at any gas station by simply using the BP Business Solutions MasterCard.

For more information, please visit www.agc.org/BPDiscount.

The freezing of credit markets, combined with sharply reduced expectations for the economy, are drastically lowering the number of construction starts. At the same time, the slowing world economy, along with a rebound in the value of the dollar against some currencies, has driven down many materials prices.

Contractors nationwide have reported in the past two months that developers have deferred projects, either because they can’t line up bank financing or they no longer expect to find tenants once an office, hotel, store or warehouse is completed. Meanwhile, as much as $100 billion of municipal bond issues have been postponed or cancelled because of turmoil in the credit markets. That has hurt contractors expecting to bid on highways, schools and public works.

The massive intervention by the Treasury and Federal Reserve in the credit markets should unlock bank lending and bond markets in the next few weeks. But the availability of credit is no guarantee that borrowers will rush to take out loans again. Indeed, states are likely to cut back their construction activity, whether financed by bonds or direct spending. Last week, the Center on Budget and Policy Priorities reported that preliminary third-quarter revenue estimates from 15 states “raise the likelihood that large, additional budget shortfalls are developing."

Congress appears poised to pass a fiscal stimulus package that includes infrastructure spending. Whether it is enacted in a lame-duck session in November or after a new President is sworn in next January remains to be seen. But enactment should provide a small boost to construction by the second quarter of 2009.

A few other construction categories should also hold up reasonably well. The “continuing resolution” that Congress passed in September keeps most federal spending at 2008 levels through early March but boosts spending for base realignment and other military construction, veterans’ hospitals, and homeland security projects. On the private side, power plants, transmission lines, wind farms and refineries appear to be moving ahead.

Contractors who still have reason to buy materials should find many prices dropping. The futures price for oil and copper last week dipped below year-ago levels. Diesel fuel should likewise soon fall below year-ago prices. Asphalt prices are dropping also, though not as sharply. Scrap steel prices have tumbled. Steel makers have tried not to lower their selling prices in tandem with the scrap decline, but the strengthening of the dollar against the euro and weakening foreign demand for steel should mean the availability of foreign steel will soon push down domestic steel prices. Gypsum, cement and concrete makers have posted or announced large price increases in recent months but may have to back down.

For 2008, I expect nonresidential construction spending to rise 6-11 percent compared to 2007. But much of that dollar increase will be eaten up by material cost increases of 7-10 percent and labor cost hikes of 5-6 percent. For 2009, I predict nonresidential spending will drop by 3-9 percent; materials costs will be down 1-5 percent, depending on the mix of inputs for a given project; and labor costs will rise 3-4.5 percent.

To report your recent experience with demand for projects or materials prices, or to receive The Data DIGest, a weekly one-page summary of economic news relevant to construction, write to simonsonk@agc.org.

The Department of Homeland Security (DHS) on October 23 released a supplemental final rule on “no-match letters,” which was published in the October 28 issue of the Federal Register.  The supplemental final rule reaffirms the content of a final rule issued in August 2007, provides additional supporting analysis for that final rule, and corrects a typographical error in the rule.  It makes no substantive changes.

The August 2007 rule was enjoined by a U.S. district court in litigation brought by the AFL-CIO and several business groups.  DHS issued the supplemental rule in response to concerns raised by the court and intends to ask the court to lift the injunction.  The plaintiffs are expected to fight that effort and seek a permanent injunction.  If the injunction is lifted, the rule could take effect immediately following the court's decision.

Immigration law prohibits employers from “knowingly” employing unauthorized aliens.  Regulations and case law issued prior to 2007 interpret the term “knowingly” as including “constructive knowledge” and provided examples of situations that may establish “constructive knowledge.”  The August 2007 rule adds additional examples, including an employer’s failure to “take reasonable steps” after receiving a no-match letter from the Social Security Administration (SSA) or DHS.  The rule sets forth a process that an employer may follow that will be deemed “reasonable steps” taken in response to receipt of a no-match letter and for the employer to receive a “safe harbor” from a finding of constructive knowledge based on receipt of a no-match letter. 

AGC raised concerns about certain shortcomings in the “safe harbor” process such as the failure to toll the time limits for exigent circumstances.  Those shortcomings remain in the rule.  AGC also raised concerns about the misleading content of a standard cover letter drafted by DHS for insertion in the no-match letters.  DHS indicates in the supplemental final rule that the cover letter will be revised.

Despite shortcomings in the “safe harbor” process, the rule provides employers with some guidance as to how to respond to receipt of a no-match letter.  It also offers employers with some – albeit limited – protection from liability for employing an unauthorized alien.   For more information on the “safe harbor” process and guidance on how to protect your company, click here.  Guidance is also provided in a recording of a September 2007 AGC audio conference that can be purchased here.

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

"Nonresidential construction spending continued growing in July, despite the weak economy and housing slump," Ken Simonson, Chief Economist for The Associated General Contractors of America (AGC), said today following the release of construction spending data from the Census Bureau. "But Congress must act promptly to avert layoffs in power and highway construction." AGC Press Release, 9/02/08

AGC's Chief Economist, Ken Simonson, appeared October 24 on Fox Business to discuss the state of transportation infrastructure.  Watch the video here.

As reported Monday, House Speaker Nancy Pelosi (D-CA) convened a forum with economic experts to discuss an economic recovery plan for the nation.  She announced that she would be calling on the appropriate committee chairmen to conduct hearings on various portions of an economic recovery package in the upcoming weeks. 

AGC has been working with Congressional leaders, Federal agency officials and state and local organizations to determine the current needs for infrastructure investment that would be included in a comprehensive stimulus package.

Such legislation will be an uphill battle for us this year. One stimulus measure failed a procedural vote in the Senate earlier this month, and the odds are stacked against another large package passing this year in the Senate, as it is unlikely that Senate Republicans will change their minds. Finally, President Bush has said he would veto a large stimulus package should it include funds for unemployment benefits and infrastructure investment.

 AGC will continue to work with Congressional leaders and the White House to make the case that additional investment in infrastructure provides tangible and ongoing stimulus for the economy.

 For more information, please contact Jeff Shoaf at (202) 547-3350 or shoafj@agc.org.

October 30, 2008 at 2:00 pm ET
Free program | In these tough economic times, it is even more important that contractors manage the risk of project nonpayment. This free AGC program will provide practical tips contractors can use to protect themselves from nonpayment situations and to better manage tight economic conditions.

Click here to register or for more information.

As part of our efforts to provide the most relevant information to our members and other interested parties, AGC is requiring all e-newsletter subscribers to register to receive our publications through the AGC Web site. This process is simple and fast, and will allow AGC to keep updated records, reduce unwanted mail and keep you informed on topics that interest you.  Instructions are available here.

Some subscribers will soon receive a message instructing you to create or update your AGC profile online at www.agc.org.  Please take the time to do so, as those without updated profiles will no longer receive communications from AGC.

If you have any questions regarding this process, please feel free to contact me at 703-837-5364 or cardenasm@agc.org.