Author: agcnews

Construction employment in October remained depressed compared to pre-pandemic levels in three-fourths of states despite the fact 36 states and D.C. added new construction jobs in October, according to an analysis by the Associated General Contractors of America of government employment data released today. Association officials added that demand for most types of nonresidential projects remains weak amid pandemic-related uncertainty and urged federal officials to enact a new round of coronavirus recovery measures. “An increasing number of nonresidential contractors are experiencing cancellations that are forcing them to lay off workers,” said Ken Simonson, the association’s chief economist. “Although single-family homebuilding and remodeling…

Americans considered several significant state and local ballot initiatives this year that would provide public financing for K-12, higher education, and other education facility construction projects. AGC and many of its Chapters across the nation generally support increased construction investment in education facilities. The public approved many of these school construction measures, the details of some of which you can find below. California Colorado Maine Maryland New Mexico Texas The approval of these initiatives is good news. However, AGC and many of its Chapters nationwide are committed to advocating for further investment in sorely needed education facility construction projects. According…

Since the last report, AGC has learned that the Small Business Administration (SBA) Paycheck Protection program (PPP) loan necessity questionnaire is approved and SBA-mandated for borrowers with PPP loans for $2 million or more. As such, applicable borrowers are required to complete it within ten business days of receipt from their lenders. AGC has been busy working to protect members’ proprietary information and loan forgiveness options. On November 17, AGC joined a broad and diverse business coalition in calling on Congress to encourage SBA to suspend its use of the questionnaire. AGC is weighing options for potential litigation to suspend the…

In the latest setback in the administration of the Paycheck Protection Program (PPP), the Internal Revenue Service (IRS) announced on November 18, via Revenue Ruling 2020-27, that expenses funded through a Paycheck Protection Program (PPP) loan are not deductible for this tax year if “the taxpayer reasonably expects to receive forgiveness of the covered loan on the basis of the expenses it paid or accrued during the covered period, even if the taxpayer has not submitted an application for forgiveness of the covered loan by the end of such taxable year” (emphasis added). AGC is opposed to this IRS position and will continue to fight for…

Part of AGC Charities’ annual Operation Opening Doors project, local volunteer general contractors led by Penta Building Group renovated the Las Vegas Rescue Mission, the downtown homeless shelter. Before the remodeling, it had just one bathroom to serve 88 guests in the women and children portion of the facility. The renovations were made possible by donations and voluntary construction work from Penta Building Group, a general contractor, and AGC Charities Inc., a national construction philanthropy organization. The two companies partnered to provide the means for the two new bathrooms, upgraded windows, roofing, doors, plumbing, lighting, a new security system, additional storage and…

In addition to the federal, state, and local political races that were decided on Election Day 2020, many state and local transportation initiatives were taken up by voters across the country. While a few major transportation initiatives failed, the majority received a positive vote. Below is a sampling of all the transportation funding initiatives that were approved or rejected by voters this election season. Statewide Financing Initiatives Transit Initiatives Bonding Measures As AGC continues to advocate for solvency of the federal highway trust fund and pushes for higher federal investment in our nation’s infrastructure, we recognize the importance that each…

As previously reported, the U.S. Small Business Administration (SBA) is planning to require all recipients of loans of $2 million or more to complete a questionnaire to demonstrate the need for their loan. This form, based on versions leaked to the media and still in the works, appears to arbitrarily mandate that many borrowers provide proprietary financial information to the SBA. To be certain, AGC of America remains committed to confirming that construction firms were eligible for PPP loans and loan forgiveness as Congress intended under the CARES Act. And we remain committed to blocking the SBA’s efforts to disregard the…

The Associated General Contractors of America’s chief executive officer, Stephen E. Sandherr, issued the following statement in reaction to the election of Joseph Biden to serve as the next president of the United States: “Congratulations to President-elect Biden and all newly elected and re-elected members of Congress. We are ready to work with the incoming administration and Congress to help craft an agenda that is focused in rebuilding infrastructure and reviving the national economy. To that end, we are eager to work with the president-elect as he and his team fashion their promised infrastructure investment proposals. In addition, we look…

Construction employment increased by 84,000 jobs in October, with jobs added in both nonresidential and residential categories, according to an analysis by the Associated General Contractors of America of government data released today. Association officials cautioned, however, that the pandemic is causing a growing number of construction projects to be canceled or delayed, according to a survey the association released in late October. “The employment data for October is good news, but our latest survey found that only a minority of contractors expect to add to their workforce in the next 12 months,” said Ken Simonson, the association’s chief economist. “As project…

The U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) recently issued two new opinion letters. Of particular interest is opinion letter FLSA2020-16 addressing compensability of employee travel time in certain situations involving construction sites located away from the employer’s principal place of business. Specifically, the letter discusses the compensability of a non-exempt (e.g., overtime-eligible) foremen and laborer’s travel time under the Fair Labors Standards Act (FLSA). An opinion letter is an official document authored by WHD on how a particular law applies in specific circumstances presented by the person or entity requesting the letter. Opinion letters represent official statements of agency…