News and Views

June 2009 Archive

DOT Secretary Recognizes AGC Member

Tuesday, June 30, 2009

Transportation Secretary Ray LaHood was on hand to break ground on a construction project in Denver June 30.  Castle Rock Construction began work on the highway C-470 project, which is the largest stimulus-funded project in the state.  In his blog, Secretary LaHood wrote that "Castle Rock Construction has saved 135 good private-sector jobs here in the county, and added 6 new jobs, thanks to the federal recovery dollars invested in this work. This is bound to have a ripple effect throughout the local economy."

Read the blog entry here, or read the Denver Post article. 

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

Partnering: Changing Attitudes in Construction

Friday, June 26, 2009

Inspired by the many Marvin M. Black Excellence in Partnering Awards, this comprehensive look at project partnering spells out the partnering process and how to manage partnering on the job with real-life testimonials and case studies. Complete with photographs, actual partnering charters, letters, evaluation forms, and observations from experts. Easy to read for the novice but with enough detail and tips for the experienced professional. 175 pages. Item No. 2902.

To order go to www.agc.org/bookstore or call 1-800-242-1767.

Learn More About BIM and Federal Subcontracting

Friday, June 26, 2009

The first webinar, How to Make BIM Work & Navigate the Legal Concerns, will be held on June 24, 2009 from 1:00 to 2:30 ET.  Hear firsthand from an owner, architect and contractor on how they have dealt with the legal ramifications of moving into a 3-D world of design and construction and how the ConsensusDOCS 301 BIM Addendum addresses these risk allocation and administration issues as the first standard BIM contract document.

The second webinar, Are You Ready to Contract for Federal Projects?, will be held on July 9, 2009 from 1:00 to 2:00 pm ET.  This webinar is ideal for those new to federal contracting or those who need a clearer understanding on federal contracting issues.  The new ConsensusDOCS 752 will be used as a guide to help explain ethics compliance, the Federal Prompt Pay Act, FAR flow-down provisions, and more.

AGC members pay just $99 for each webinar ($229 retail price).  For more information, contact Megan McGarvey at mcgarveym@agc.org or 703-837-5369.

Building Contractors Conference a Great Success

Friday, June 26, 2009

The leaders of the building construction industry participated in the AGC Building Contractors Conference held June 10-13 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.  Attendees also had several opportunities to network with their colleagues at evening receptions, luncheons and the golf tournament.  

Don't forget to save the dates for the next AGC Building Contractors Conference on January 20-23, 2010 at the Caribe Hilton in San Juan, Puerto Rico.

For more information, contact Cassia Griffin at (703) 837-5408 or griffinc@agc.org.

AGC Briefs D.C. Water Authority

Friday, June 26, 2009

On June 6, AGC's Chief Economist Ken Simonson gave a presentation to Washington, D.C.'s  Water and Sewer Authority (WASA) senior management.  WASA provides drinking water and wastewater services to 500,000 customers in the District of Columbia, and 1.6 million customers in Maryland and Virginia. In his presentation, Simonson discussed the outlook for construction markets and highlighted increasing unemployment and material price trends in the construction industry.

AGC's Municipal &Utilities Division director Perry L. Fowler also participated in the WASA briefing and discussed current industry trends and regulatory issues impacting AGC contractors such as  American Recovery and Reinvestment Act (ARRA) Buy American requirements and recent waivers issued by the EPA.  Former AGC of D.C. president and AGC national board member Dragan Stojanovic, Norair Engineering Corp., also attended the meeting.

Simonson also spoke to the New York City Department of Environmental Protection at its Newtown Creek Water Pollution Control Plant on June 22. Both the Washington, D.C. and New York water agencies have multi-billion dollar construction plans and sought out AGC's chief economist for his take on the outlook for materials costs.

If you know of a water or wastewater agency that would like to schedule a similar presentation for its senior management and estimating or engineering staff, please contact Perry Fowler at fowlerp@agc.org.

AGC and ABA Construction Forum Sign Partnering Agreement to Promote A Better Construction Industry

Friday, June 26, 2009

One of the most wasteful aspects of the construction process is the litigious and adversarial nature of getting a project built. Part of the problem stems from contractors not understanding what lawyers can and cannot do for them and from lawyers not understanding the business of construction.

AGC and the American Bar Association Forum on the Construction Industry (FOCI) are trying to do something about it. The FOCI is the largest organization of construction lawyers in the United States and abroad with more than 6,000 construction attorneys.  At the June AGC Building Contractors Conference, AGC and the FOCI signed a partnering agreement to increase communications and understanding between the construction industry and construction attorneys.  J. Doug Pruitt, AGC's President, signed the agreement and commented that general contractors' interactions with attorneys often revolve around depositions.  The partnering agreement is a proactive step to develop helpful tools designed to drive better solutions.  Rather than reactively "lawyering up" for litigation, there is a recognition that the best construction attorneys function as facilitators of solutions.

Among other action items, the Partnering Agreement calls on the organizations to promote the reasonable allocation of both risk and responsibility as an essential element for all construction contract relationships.  The development of ConsensusDOCS standard contracts is an example in which the entire industry came together, including AGC and individual members of the FOCI, to make a positive difference. By expanding upon ongoing collaboration, AGC and the FOCI help to facilitate better project construction outcomes for tomorrow, starting today.

When the FOCI's leadership decided to increase and formalize outreach activities with the design and construction organizations, FOCI Chair Robbie MacPherson approached AGC as the first association to begin this effort.  This agreement will help expand the recent collaborative activities between the AGC and FOCI, which have already begun to occur.  For instance, the FOCI's most recent fall program focused on the ConsensusDOCS contracts, and included several AGC members and staff.  The meeting garnered a record-setting attendance, and some prospective attendees had to be turned away due to capacity limits.  The FOCI in turn co-presented a new and highly successful series of educational programs on construction law and contracts at the most recent AGC Convention. 

For more information, contact Brian Perlberg at (703) 837-5318 or perlbergb@agc.org.

AGC of Minnesota Recognized as Community Partner of the Year

Friday, June 26, 2009

AGC of Minnesota Awarded Community Partner of the Year by the Metropolitan Economic Development Association (MEDA).  AGC of Minnesota was recognized for its involvement and support for MEDA's Construction Partnering Program.  The Chapter lends its office for program meetings and supports the use and growth of women and minority owned contractors, according to MEDA's annual report.

For more information, contact Dave Semerad at dsemerad@agcmn.org.

Senate EPW Committee Approves Expansion of Clean Water Act Jurisdiction

Friday, June 26, 2009

On June 18, the Senate Environment and Public Works Committee passed S. 787 the Clean Water Restoration Act.  The legislation was offered as an amendment sponsored by Chairwoman Barbara Boxer (D-Calif.), Senator Max Baucus(D-Mont.) and Senator Amy Klobuchar (D-Minn.). Republican committee members criticized the bill as a substantial expansion of federal jurisdiction over water by removing the term "navigable" waterways.  Ranking Member Senator James Inhofe (R-Okla.) and Senator John Barasso (R-Wyo.) offered multiple unsuccessful amendments to address "negative impacts" on rural and agricultural communities.

In a June 17, 2009, letter to EPW Committee members, AGC opposed this legislation because it gives the U.S. Environmental Protection Agency and the U.S. Army Corps of Engineers jurisdiction over all wet areas-however remote or intermittent-and over all activities (e.g., construction) affecting those waters. Consequently, the bill would require construction contractors and project owners to obtain and be regulated by federal Clean Water Act permits far more frequently than is currently required.

AGC will continue to fight this legislation as it is considered by the full Senate. Senators Mike Crapo (R-Idaho) and Jim Inhofe (R-Okla.) have placed "holds" on the legislation, making it unlikely that it will see floor time in the near future. Similar legislation in the House of Representatives has yet to be introduced, however T&I Chairman James Oberstar (D-Minn.) has indicated his support for similar legislation in the House of Representatives.

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

AGC Presses California for Relief from Potentially Nationwide Rule on Off-Road Diesel Emissions

Friday, June 26, 2009

In close coordination with the AGC of California and its San Diego Chapter, AGC of America continues to press California for relief from its potentially nationwide rule on off-road diesel emissions.   Last December, AGC petitioned the California Air Resources Board (CARB) to reopen the rule.  AGC also urged the U.S. Environmental Protection Agency (EPA) to deny the state the federal approval that it requires to enforce the rule's core requirements.  Since then, AGC has persuaded CARB to make an objective assessment of how greatly the recent economic downturn has already reduced emissions from off-road diesel equipment, and to share background information on the agency's past projections of such emissions with the association.

The state finalized the rule in June of 2008 and sought federal approval of its strict standards for emissions from existing fleets of off-road diesel equipment two months later.  If the state's standards meet with federal approval, they will begin to take effect in March of 2010.  In addition, most if not all of the other states will be free to adopt identical standards.  While the Clean Air Act generally preempts the states' authority to set emission standards, the statute carves out an exception for California and any California standards that meet with federal approval.

The new standards are for nitrogen oxides (precursors to ozone) and particulate matter.  These standards are fleetwide averages, and do not apply to individual pieces of equipment, but they steadily decline over a period of eleven years, and in each year in which a construction contractor cannot meet the standards, the firm has to retrofit, repower, replace and/or retire a certain percentage of its horsepower.   When it finalized the rule, the state estimated that the cost of compliance would be $3.4 billion.  The state's construction industry originally estimated that the cost would reach $13 billion, and its latest estimates are even higher. 

This spring, the new rule's reporting requirements started to take effect, and CARB has now amassed a wealth of new data on the off-road equipment in the state's construction industry.  More importantly, the agency has agreed to share much of that recently collected information with AGC.  The agency staff has an October deadline for determining how current emissions compare with the agency's original projections, in the wake of the economic downturn.

AGC met with the agency staff in mid-April and again in mid-June, and it appears that the agency is willing postpone any decision on AGC's petition to reopen the rule at least until the agency can take a hard look at the latest information.  Major issues are far from resolved, and AGC has made a point of retaining all of its legal options, but in recent meetings, the agency staff has been forthcoming and generally cooperative.  Stay tuned!

For more information, contact Mike Kennedy at (703) 837-5335 or kennedym@agc.org.

AGC-Supported Legislation for Green Job Training Would Ensure Funding Available to All Contractors

Friday, June 26, 2009

The Energy Independence and Security Act of 2007 established an energy and renewable energy worker training program through a provision known as the Green Jobs Act, which would limit training grant funding only to entities that coordinate with labor organizations.  AGC is supportive of the creation of such a grant program as part of an effort to create an efficient and renewable energy-skilled workforce.  However, AGC believes that the opportunity to qualify for such grants should be open to all contractors, both union and open shop, with accredited training programs. 

Last week, the bill (S. 1238) was introduced in the Senate, and would open up the Green Jobs Act to allow any contractor, regardless of union affiliation, with an accredited training program to compete for grants under the Green Jobs Act.  This bill mirrors legislation introduced earlier this year in the House (H.R. 2026) by Congressman Jon Kline (R-Minn.).

 For more information, contact Kelly Knott at (202) 547-4685 or knottk@agc.org.