News and Views

September 2009 Archive

AGC Unveils Construction Recovery Plan as Construction Employment Declined in 324 Cities in August

Wednesday, September 30, 2009

AGC CEO Steve Sandherr addresses the media at an abandoned construction site in Sparks, Nev.

AGC CEO Steve Sandherr addresses the media at an abandoned construction site in Sparks, Nev.

AGC unveiled a new plan designed to revive the hardest hit sector of the economy, the nation's construction industry. The plan, "Build Now for the Future: A Blueprint for Economic Growth," is designed to reverse predictions that construction activity will continue to shrink through 2010, crippling broader economic growth.

The mix of new incentives, tax cuts, policy revisions and infrastructure investments outlined in the plan are needed to stem the dramatic decline in construction activity and employment taking place nationwide.  AGC's analysis of federal employment data found construction employment declined in 324 of 337 metropolitan areas between August 2008 and 2009.

AGC unveiled the plan during a news conference at a stalled construction site in Sparks, Nev., a city that lost 35% of its construction work force.  The news was covered by the Associated Press, Las Vegas Review-Journal, Miami Herald and San Antonio Express News, to name a few. Local television stations covered the event as well.

Read the plan and related information here.

AGC Calls for Long-Term Transportation Investment

Tuesday, September 29, 2009

The Associated Press reported on surface and air transportation funding bills that are unlikely to include major improvements or additional funding due to lawmakers' concentration on health care. In the article, AGC's chief executive officer Steve Sandherr called for a long-term investment instead of short-term fixes.

Read the article here.

AGC also raised this issue in the Wisconsin Daily Reporter, where AGC's Brian Deery explained the need for a six-year surface transportation bill, California Real Estate Journal, and Bloomberg News, where Michael Griffith, vice president of AGC member company J.F. Allen Co., explained how state transportation officials' inability to make investments has forced him to lay off workers during the height of the company's typical busy season.

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

AGC Joins Alliance with OSHA to Show Value of Safety Programs

Tuesday, September 22, 2009

On September 11, OSHA renewed its Alliance with the Roadway Work Zone Safety and Health Partners, which includes AGC, the American Road and Transportation Builders Association, the International Union of Operating Engineers, the Laborers International Union of North America and the National Asphalt Pavement Association.

OSHA and the Roadway Work Zone Safety and Health Partners will work together to develop and disseminate case studies demonstrating how an effective safety and health program adds value to a business. They will also participate in forums, roundtable discussions and stakeholder meetings on work zone safety and health issues to forge innovative solutions to workplace hazards.

For more information, contact Kevin Cannon at (703) 837-5410 or cannonk@agc.org.

Federal Contractor E-Verify Rule Now in Effect

Tuesday, September 22, 2009

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.   Click here for information on the free webinars DHS is offering on the E-Verify program.

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.

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 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.

Although the litigation continues, we are advising contractors 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.

For more information, contact Denise Gold at (703) 837-5326 or goldd@agc.org, or Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.

AGC Submits Comments on Proposed Rule Requiring Federal Contractors to Post NLRA Notices

Tuesday, September 22, 2009

On September 3, AGC submitted comments on a proposed rule issued by the U.S. Department of Labor ("the Department") Office of Labor-Management Standards titled "Notification of Employee Rights Under Federal Labor Laws."  The proposed rule implements Executive Order 13496, which requires federal agencies to include a new clause in nonexempt contracts requiring contractors and subcontractors to post notices informing their employees about their rights under the National Labor Relations Act ("NLRA").  The proposed rule establishes the content of the notice and sets forth sanctions, penalties, and administrative procedures related to findings of noncompliance.

AGC commented that the content of the proposed notice should be shortened, simplified, and contain more balanced information.  AGC recommended removing the lengthy list of specific examples of illegal employer conduct or at least including a similar list of illegal union conduct as well as additional information about employees' so-called "Beck rights" concerning union nonmembership and dues payment.  AGC also recommended that the Department abandon its proposal to include the entire text of the notice in the new contract clause, suggesting instead that the Department allow contracting agencies to incorporate the notice by reference.

AGC also expressed strong concern about the provisions in the proposed rule that appear to give the Department authority to enforce compliance with the content of the notice - i.e., substantive mandates of the NLRA - rather than merely with the posting requirement.  AGC pointed out that the Department lacks authority and expertise to administer and enforce the NLRA, a complex and fluctuating body of law over which the National Labor Relations Board has primary jurisdiction.

In addition, AGC asserted that the proposed rule makes available overly severe sanctions - including contract cancellation, termination, and debarment - for even minor violations.  AGC advised the Department to make such sanctions available only in cases of willful and repeated offenses, as determined after an opportunity for a full and fair hearing.

Finally, AGC challenged the Department's interpretation of the executive order's application to subcontracts involving purchases below the simplified acquisition threshold.  Because the executive order explicitly exempts contracts for purchases below the simplified acquisition threshold but does not explicitly exempt such subcontracts, the Department included in coverage of the rule subcontracts below the threshold provided that they are necessary to the performance of the prime contract.  AGC recommended that the Department limit the rule to subcontracts that are both for purchases above the simplified acquisition threshold and necessary to the performance of the prime contract.

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

Transportation Construction Coalition Wins 2009 Marketing Communications Award

Tuesday, September 22, 2009

The Transportation Construction Coalition, a partnership of 28 national associations and construction unions and co-chaired by AGC and the American Road & Transportation Builders Association, won honorable mention from the Construction Writers Association for its recent advertising campaign calling for increased transportation funding.

The campaign included several ads that were placed in various Capitol Hill publications throughout this year.

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

AGC Construction Safety Excellence Award

Tuesday, September 22, 2009

AGC is announcing the 2010 Construction Safety Excellence Awards (CSEA) program, the industry's elite safety excellence awards program. AGC's CSEA program recognizes companies that have developed and implemented premier safety and loss prevention programs and showcases companies that have achieved continuous improvements and maintenance of their safety and health management systems.  All AGC Chapters are encouraged to submit nominations for each division and occupational category.

Please visit www.agc.org/csea for application instructions to assist with the proper completion of the CSEA application and a list of Chapter Safety Professionals who can assist with questions regarding the application process.

The application can be completed electronically and saved throughout the process.  After completion the application can be printed for required signatures and submission to the Chapter.

The deadline for submitting the entries to AGC is December 4, 2009.

For more information, contact Raj Vohra at 703-837-5409 or vohrar@agc.org.

Free ConsensusDOCS Webinar

Tuesday, September 22, 2009

Whether you are a current subscriber to ConsensusDOCS standard construction contract documents or not, you can benefit from learning why more and more people are using ConsensusDOCS as their contractual foundation.

On September 28, 2009, from 2:00 to 3:30 p.m. ET, AGC will host a free ConsensusDOCS webinar titled, "Why Owners Choose ConsensusDOCS Over AIA".  Our panel of experts will compare and contrast select AIA documents.  They will also discuss the benefits of using ConsensusDOCS standard construction contract documents to help save you time and money.  After a 60-minute presentation, you will have an opportunity to ask the panelists questions.

Register today for this free webinar sponsored by AGC. For more information, contact Megan McGarvey at mcgarveym@agc.org or 703-837-5369.

Free ConsensusDOCS Upgrade

Tuesday, September 22, 2009

In June 2009, ConsensusDOCS released 11 new standard construction contract documents, including a federal subcontract (the first and only standard document in the industry).  Current subscribers won't want to miss out on the free ConsensusDOCS upgrade to access the new documents (depending upon your subscription package).

New ConsensusDOCS documents:

235 - Short Form Agreement Between Owner and Contractor

725 - Agreement Between Subcontractor and Subsubcontractor

752 - Subcontract Agreement for Use on Federal Government Construction Projects

481 & 482 - Design-Build Certificates of Substantial and Final Completion

781 & 782 - Subcontract Certificates of Substantial and Final Completion

812 & 813 - Trade Contract Change Orders

814 & 815 - Trade Contract Certificates of Substantial and Final Completion

In direct response to customer feedback, the new release also incorporates a software feature allowing users to choose whether or not to print the ConsensusDOCS endorsing organization logo box on their contracts. If you haven't already done so, upgrade today by visiting the ConsensusDOCS powered by DocuBuilder 6.3 Download Center.

For more information, contact Carrie Ciliberto at (703) 837-5367 or cilibertoc@agc.org.

The ConsensusDOCS 752 Federal Subcontract

Tuesday, September 22, 2009

ConsensusDOCS recently released the first and only federal subcontract agreement designed specifically for federal government construction projects.  The release is especially timely in light of increased federal government construction activity, as well as implementation of new rules including E-Verify.  The ConsensusDOCS 752 - Subcontract for Federal Government Construction Projects is designed to help contractors and subcontractors comply with complex federal laws and regulations.

The ConsensusDOCS Federal Subcontract is the only standard agreement that addresses new terms and conditions essential to comply with the Federal Acquisition Regulation (FAR).  Even seasoned federal government contractors, but especially those new to the federal market, should consider using ConsensusDOCS when subcontracting federal work.  The 752 subcontract addresses E-Verify, Ethics Compliance, Federal Prompt Pay Act and much more.  ConsensusDOCS even provides users a sample exhibit regarding required FAR flow-down provisions.

Order Today.  To download an excerpted sample document, please visit the AGC Bookstore. For more information, contact Carrie Ciliberto at (703) 837-5367 or cilibertoc@agc.org.