Author: agcnews
Construction employment increased by 51,000 jobs in December, with gains for nonresidential as well as residential contractors, according to an analysis by the Associated General Contractors of America of government data released today. Association officials cautioned, however, that its latest survey shows widespread pessimism among contractors about the volume of work available in 2021, and they urged lawmakers to focus on measures designed to rebuild the economy and demand for construction. “December’s employment gains likely reflect milder weather than usual for the month rather than sustained demand for projects,” said Ken Simonson, the association’s chief economist. “In fact, our survey found contractors…
Public and private building markets, many of which are reeling from pandemic impacts, will find some respite through AGC’s success in landing significant development tax policies in the year-end COVID-relief and government funding bill enacted on December 27, 2020. These tax policies include $25 billion in tax incentives for community buildings development through the extension of the New Markets Tax Credit for five years; expanding tax credits for constructing more than 550,000 multifamily housing units via the Low-Income Housing Tax Credit; and makes permanent, with updated ASHRAE standards, the commercial building energy efficiency tax deduction (Section 179D), which encourages private…
AGC helped secure $10 billion for state departments of transportation to help offset lost transportation revenues threatening bid lettings and project cancelations as part of the year-end COVID-relief and government funding bill enacted on December 27, 2020. AGC members generated more than 50,000 messages to their members of Congress and President Trump in support of this request, in addition to many phone calls and contacts by AGC Chapters. In addition, the legislation includes a full year’s funding for the federal-aid highway and transit program, amounting to approximately $46 billion. For a detailed analysis of what was included in the year-end…
The U.S. Department of Labor’s Wage and Hour Division (WHD) announced additional guidance to provide information about protections and relief offered by the Families First Coronavirus Response Act (FFCRA). The FFCRA’s paid sick leave and expanded family and medical leave requirements expired on December 31, 2020. The new guidance, in the form of Frequently Asked Questions (see questions 104 & 105) on the WHD website, addresses whether workers who did not use their leave entitlement under the FFCRA in 2020 may use such leave after December 31, 2020. It also explains how WHD will maintain its enforcement authority over employers’ leave responsibilities…
The U.S. Department of Labor announced a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA). The rule takes effect 60 days after publication in the Federal Register, on March 8, 2021, however, AGC expects the incoming Biden administration to reexamine the rule prior to it becoming effective. The final rule includes the following clarifications: For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.
AGC blocked a surprise federal tax increase of up to 37 percent on Paycheck Protection Program (PPP) loan forgiveness, benefiting tens of thousands of construction firms. AGC was able to secure a provision in the year-end COVID-relief and government funding bill enacted Dec. 27, 2020 that overturned the IRS position barring deductions for PPP loan-forgiven business expenses. In addition, the association secured provisions providing for expedited loan forgiveness for PPP loans less than $150,000, expanded additional expense categories for PPP loan forgiveness and more. For a detailed analysis of what was included in the year-end bill from a construction industry…
Most contractors expect demand for many types of construction to shrink in 2021 even as the pandemic is prompting many owners to delay or cancel already-planned projects, meaning few firms will hire new workers, according to survey results released today by the Associated General Contractors of America and Sage Construction and Real Estate. The findings are detailed in The Pandemic’s Growing Impacts on the Construction Industry: The 2021 Construction Hiring and Business Outlook Report. “This is clearly going to be a difficult year for the construction industry,” said Stephen E. Sandherr, the association’s chief executive officer. “Demand looks likely to continue shrinking, projects…
The U.S. Department of Labor’s Wage and Hour Division (WHD) posted announced additional guidance to provide information about protections and relief offered by the Families First Coronavirus Response Act (FFCRA). The FFCRA’s paid sick leave and expanded family and medical leave requirements expired on Dec. 31, 2020. The new guidance, in the form of Frequently Asked Questions (see questions 104 & 105) on the WHD website, addresses whether workers who did not use their leave entitlement under the FFCRA in 2020 may use such leave after Dec. 31, 2020. It also explains how WHD will maintain its enforcement authority over employers’ leave…
The U.S. Department of Labor announced a final rule clarifying the standard for employee versus independent contractor status under the Fair Labor Standards Act (FLSA). The rule takes effect 60 days after publication in the Federal Register, on March 8, 2021. However, AGC expects the incoming Biden administration to reexamine the rule prior to it becoming effective. The final rule includes the following clarifications: For more information, contact Claiborne Guy at claiborne.guy@agc.org or 703-837-5382.
Only 34 percent of the nation’s metro areas—just over one-third—added construction jobs from November 2019 to November 2020, according to an analysis of new government data that the Associated General Contractors of America released today. Association officials said large numbers of contractors are having to lay off workers once they complete projects begun before the pandemic because private owners and public agencies are hesitant to commit to new construction. “Canceled and postponed projects appear to be more common than new starts for far too many contractors,” said Ken Simonson, the association’s chief economist. “Our association’s 2021 Construction Hiring and Business Outlook Survey…