Author: agcnews

The construction industry’s fortunes continued to diverge in October, as residential construction expanded again while nonresidential construction remained largely unchanged from a month ago and is down compared to last year, according to an analysis of new federal construction spending data by the Associated General Contractors of America. Association officials said that demand for nonresidential construction is being hit by private sector worries about the coronavirus, tighter state and local budgets and the lack of new federal pandemic relief measures. “The October spending report shows private nonresidential construction is continuing to slide,” said Ken Simonson, the association’s chief economist. “Public…

Each year around this time, AGC asks you – our members – to predict what next year will be like for your business.  AGC has partnered with Sage to prepare questions that focus on expectations for market performance, hiring, labor market conditions, etc.  Please take a moment to complete the survey here. AGC of America will use the survey results to help make the case with elected and appointed officials in support of key member priorities. The more people who complete the survey, the more effective the results will be in supporting our work on your behalf.

The U.S. Department of Labor’s Wage and Hour Division (WHD) announced that it has launched an education and enforcement initiative in eight Southeastern states to ensure construction companies that work on federal or federally assisted construction projects meet prevailing wage requirements of the Davis-Bacon Act (DBA) and the Davis-Bacon and Related Acts (DBRA). WHD district offices in Alabama, Florida, Georgia, Kentucky, Mississippi, North and South Carolina, and Tennessee will engage federal contracting agencies, the Small Business Administration, and local chapters of construction associations to educate them about construction industry employers’ responsibilities, and how to prevent violations. WHD also will provide educational seminars…

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…

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…

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…

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…