Unveiled at the recent Building Contractors Conference, the AGC Lean Construction Forum is an inclusive and collaborative community that is open to anyone with an interest in lean construction processes.  The Forum is focused on facilitating dialogue and information sharing through its Web site (www.agcleanforum.org) and developing a curriculum and learning opportunities on the use of Lean principles in the construction industry.  

Anyone with an interest in Lean Construction can "join" the Forum at www.agcleanforum.org.  AGC members with a Username and Password for www.agc.org can use that same information to log-in to the Forum Web site.  If you do not have that information you can simply create a profile and join the Forum.  This is a brand new Web site and improvements are still being made.  Please share any comments or questions about the Forum and/or the Web site at starkm@agc.org.

The Forum will meet at the AGC Building Contractors Conference in Midway, Utah, on June 10, 2010.

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.

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.

The AGC Specialty Contractors Council Executive Committee (SCC EC) met January 21, 2010 at the AGC Building Contractors Conference in San Juan, Puerto Rico.  Topics included a review of 2009 activities, the current construction market, AGC's value to specialty contractors, and 2010 programs and services.  The SCC EC will also meet on March 18 at the AGC Annual Convention in Orlando, FL.

Using real-world examples, two leading construction attorneys will discuss many of the difference between ConsensusDOCS and AIA standard form construction contract documents. 

Key issues that will be addressed include:

• Owner Financial Information
• Means and Methods
• Submittal Schedule
• Change Orders
• Dispute Resolution
• Retainage
• Substantial Completion
• Insurance
• Roles and Responsibilities
• Indemnification
• Liquidated Damages
• Order of Precedence

Duration:  90 minutes (including live Q & A)

Register today by clicking here!

The U.S. Environmental Protection Agency (EPA) is currently considering whether or not to expand and strengthen requirements of the 2008 Lead Renovation, Repair and Painting (RRP) rule to cover renovations of both the exteriors and the interiors of all public and commercial buildings.  EPA's anticipated action is required by a legal settlement it reached in August 2009 with environmental and health advocacy groups that had challenged the RRP rule.  The current RRP requirements, which will take full effect on April 22, 2010, require paid contractors and maintenance professionals to be trained and certified on certain mandated lead-safe work practices before renovating or repairing housing and facilities for children built before 1978.

EPA is considering extending the lead RRP requirements to all commercial buildings.  This action results from a legally-binding "agreement" EPA reached with environmental groups to settle a lawsuit that Sierra Club and others filed in the Federal Court of Appeals against the Agency concerning its RRP rule.  Under the settlement agreement, EPA is required to reconsider certain provisions of the RRP regulations and issue a series of rulemakings.  Specifically, EPA has agreed to the following:

• By April 22, 2010, EPA will issue an ANPR (advance notice of proposed rulemaking) discussing its intention to propose work practice requirements for renovations on the EXTERIORS of public and commercial buildings other than child-occupied facilities (schools and child care centers already covered by the final RRP rule); and to evaluate whether renovations in the INTERIORS of these buildings create lead-based paint hazards, and, if so, propose work practice requirements for those renovations.

• By December 15, 2011, EPA will issue a proposed rule to establish work practice requirements for renovations on the EXTERIOR of public and commercial buildings other than child-occupied facilities. EPA must take final action on the EXTERIOR proposal by July 15, 2013.

• By September 30, 2011, EPA will consult with the EPA Science Advisory Board (SAB) on a risk assessment methodology to evaluate the hazards posed by renovations in the INTERIOR of public and commercial buildings not covered by the final RRP rule. Eighteen months after receiving the SAB report, EPA must either issue a proposed rule to establish work practice requirements for INTERIOR renovations in public and commercial buildings or conclude that they do not create lead-based paint hazards. The proposal must include, if necessary, new hazard standards for these buildings. EPA must take final action on the proposed rule within 18 months of publication.

All future EPA rulemakings will be available for public comment.

First Round of Proposed Changes to RRP

Back in October 2009, EPA proposed a first set of revisions to the 2008 Lead Renovation, Repair, and Painting rule that would eliminate what EPA refers to as the "opt-out" provision.

That provision allows renovators to opt out, or be exempted from, the training and work requirements of the rule. (Firms can be exempted if they obtained a certification from the owner that no child under 6 and no pregnant woman resided in the residence.)  The Agency also is proposing to increase recordkeeping requirements and changes affecting training.  EPA also would require renovation firms to provide the owner and occupant with records documenting compliance with the rule. 74 Fed. Reg. 55506, Oct. 28, 2009.

In related news, EPA is also currently working with the Department of Housing and Urban Development to modify the definition of lead-based paint in its regulations.

For more information, please contact Leah Pilconis at pilconisl@agc.org or (703) 837-5332.