Author: agcnews

The Construction Labor Research Council (CLRC) has developed a new customized report titled Contractor’s Cost Conundrum designed to explain some of the difficult economic and staffing challenges faced by contractors. The report, customized by location, compares the cost of living (CPI) to the extremely large increases in the commodities (materials) purchased by contractors. Those increases dwarf the CPI, showing one big challenge faced by contractors. The report goes on to clearly explain another lesser known but critical difficulty, variability. It shows the extreme variability over time (which really means unpredictability) in the cost of construction commodities, spending on construction and even employment,…

Under the Employee Retirement Income Security Act (ERISA), as amended by the Multiemployer Pension Plan Amendments Act (MPPAA), a company incurs withdrawal liability when it withdraws from a multiemployer pension plan. In its recent decision in United Mine Workers of America 1974 Pension Plan v. Energy West Mining Co., the U.S. Court of Appeals for the District of Columbia Circuit held that this liability must be calculated using an interest rate that is based on the anticipated future rate of return on the fund’s investment asset portfolio. The D.C. Circuit joins the U.S. Court of Appeals for the Sixth Circuit (KY, MI, OH,…

Jeff Forbes is the Dallas Regional Director for The Beck Group’s Dallas office. Throughout his 40-year tenure at Beck, his technical knowledge, practical approach, and helpful nature have been refined and now play a key role as he oversees all construction and architectural operations for the Dallas region. Jeff is a caring person with a passion for giving back and he serves on various boards and committees for TEXO, the construction association of North and East Texas and AGC of America. He contributes his time to CityLab Foundation Board, Watermark Church, Dallas AIA Architecture and Design Foundation, co-chair for the…

On June 30, AGC along with more than 60 organizations took issue with OSHA’s proposed rule to expand the scope and revise the provisions of its “Improved Tracking of Workplace Injury and Illness” regulation. If finalized as proposed, the rule will require construction firms with 100 or more employees to electronically submit their OSHA Form 300 (log of work-related injuries and illnesses), OSHA Form 300A (summary of work-related injuries and illnesses), and OSHA Form 301 (injury and illness incident report) on an annual basis. For construction firms with 20 – 100 employees, the rule will require the annual submission of their OSHA Form 300A…

The price of materials and services used in nonresidential construction jumped 1.1 percent last month, outpacing the rise in contractors’ bid prices, according to an analysis by the Associated General Contractors of America of government data released today. Association officials warned that rising materials prices were having an adverse impact on a growing number of construction projects that have suddenly become more expensive. “Some materials prices have fallen recently but others appear headed for further increases,” said Ken Simonson, the association’s chief economist. “Since these prices were collected, producers of gypsum, concrete, and other products have announced or implemented new increases. In…

We have all heard the expression death by a thousand cuts. Listen to the just-released AGC ConstructorCast and hear about a design-build construction project that had over 88,000 cuts. These cuts came in the form of owner comments on the contractor’s submittals that typically expressed an owner “preference” that was not necessarily a contractual requirement. Just trying to parse out the nature of the owner’s comments, the design-builder estimated it cost the company 49 person-years! Comments stating a preference were four times more likely than comments indicating something “non-compliant.” Some ENR top 75 firms have left the design-build market amidst this “midlife crisis” of…

The construction industry added 13,000 jobs in June as the number of jobseekers with construction experience plunged to a record low for the month according to an analysis of federal employment data released today by the Associated General Contractors of America. Association officials said the industry would likely have added even more jobs in June had it not been for the shortage of available workers. “Although nonresidential contractors were able to add employees in June, the industry needs more as demand for projects is outpacing the supply of workers,” said Ken Simonson, the association’s chief economist. “With industry unemployment at…

On June 30, the U.S. Supreme Court decided a climate change related case that invoked the “major questions doctrine” to determine that the U.S. Environmental Protection Agency (EPA) had overstepped its authority under the Clean Air Act Section 111 to force an energy generational shift away from coal (West Virginia v. EPA). In the aftermath of this ruling, policy experts have been discussing whether this prohibits EPA from taking regulatory action to address climate change and whether the major questions doctrine will be called into play more frequently. Another recent example of the Court applying the doctrine is when it halted enforcement…

Who’s on the hook for design defects in design-build projects? It may not always be who you think. In this episode, Dirk Haire, co-chair of Fox Rothschild’s Construction Law Practice Group, and David Hecker, group general counsel overseeing all claims, litigation, and investigations for Kiewit Corporation, share their wealth of knowledge on design-build risk. Find out when and why contractors do not always bear the risk of design errors or omissions on a design-build project. This episode explains design-builders’ liability standard and discusses certain types of overreach by owners that merit pushback from design-builders. This podcast episode will help you:…

Total construction spending edged down 0.1 percent in May as spending on new houses and apartments stalled, while public and private nonresidential construction slumped, according to an analysis the Associated General Contractors of America released today of federal spending data. Association officials said the construction industry’s capacity to build projects was being limited by workforce shortages and supply chain problems. “Contractors say demand remains strong for nonresidential projects but they are having trouble both getting materials on time and hiring enough workers,” said Ken Simonson, the association’s chief economist. “The industry’s unemployment rate was down to 3.8 percent in May, a…