Author: agcnews

NEW! ConstructorCast Episode: Assessing Design-Build Risk: 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.

Follow-up on AGC Member Survey on Sustainability Practices This spring, AGC conducted a brief survey on sustainability practices as part of our ongoing discussion with members and with policymakers on climate change policies. AGC would like to take this opportunity to thank members for their participation and highlight some of the key findings (see below). The survey results will help AGC understand industry practices related to sustainability and carbon emissions tracking and/or reporting, better advocate for workable measures in any future proposals, and educate policymakers about the impact of any proposed policies on the industry. The respondents worked within the…

In a June 21 letter, AGC of America raised supply chain concerns stemming from a proposed rulemaking to impose Federal Implementation Plan requirements on twenty-six states as part of the U.S. Environmental Protection Agency’s (EPA) “good neighbor” plan related to the 2015 ozone National Ambient Air Quality Standard (NAAQS). EPA’s proposal would add emissions budgets and limits on certain energy and, for the first time, industrial sources—including certain kilns, boilers, furnaces, and mills. Although not directly impacted, AGC members could experience disruptions in availability or cost increases for energy or materials key to construction such as cement, iron and steel, glass, chemicals,…

Construction employment increased in two out of three U.S. metro areas between May 2021 and May 2022, according to an analysis by the Associated General Contractors of America of new government employment data. Association officials noted that a lack of qualified workers kept employment down in many metro areas. “Construction employment has rebounded from post-pandemic lows in most metro areas,” said Ken Simonson, the association’s chief economist. “But near-record low unemployment and historically high job openings show that employment would be even higher if enough qualified workers were available.” Read more.

AGC weighs in on SEC proposal to require privately held construction contractors to track and report emissions on construction projects for public companies. On June 17, AGC weighed in with the Securities and Exchange Commission (SEC) regarding an expansive proposed rule that would compel publicly-traded companies to disclose, annually, their greenhouse gas (GHG) emissions and climate related risks. AGC is concerned that this new reporting framework would lead publicly traded companies, and other owners, to mandate their privately-held construction firms track and disclose on-site (GHG) emissions and embodied carbon in building materials for construction projects. According to a recent survey, only 14…

When contracting for design-build, ConsensusDocs offers options. The ConsensusDocs 410 Design-Build Agreement [Cost of the Work with a Guaranteed Maximum Price (GMP)] is the most popular within ConsensusDocs. Contractually, the GMP is set by the ConsensusDocs 410.1 GMP Amendment. When should you set the GMP for a design-build project? Well, that depends. Parties should set the GMP as soon as there is enough design development as well as price and schedule certainty that the parties feel comfortable locking those terms into an agreement. When setting a GMP, users should note that the GMP, as spelled out by article 7, includes the cost of…

On June 21, 2022, the Biden Administration unveiled its Spring 2022 Unified Agenda of Regulatory and Deregulatory Actions mapping out federal agency priorities for the coming months. This bi-annual publication informs the public of regulations under consideration or planned by federal agencies. The present agenda includes several submissions by labor agencies. The U.S. Department of Labor’s (DOL) submission updates projected timelines for action already in progress of relevance to construction contractors, including Wage and Hour Division plans to issue a proposed rule revising the overtime regulations in October 2022 and a final rule updating the Davis-Bacon and Related Acts regulations in December 2022. While not…

DOL Proposes Changes to Davis-Bacon Wage Survey Report Form Thu, 06/23/2022 – 12:34 The U.S. Department of Labor is proposing changes to its “WD-10 Davis Bacon Wage Survey Report of Construction Contractor’s Wage Rates” form to help improve collection of data for determining prevailing wage rates. The U.S. Department of Labor’s Wage and Hour Division (WHD) has announced a notice of proposed revision to the “WD-10 Davis Bacon Wage Survey Report of Construction Contractor’s Wage Rates” form. WHD is proposing changes to the WD-10 in effort to improve the overall efficiency of the Davis-Bacon and Related Acts (DBRA) survey process. The proposed…

AGC of America and five other employer groups jointly submitted an amicus brief at the U.S. Supreme Court on June 15 in support of a request for review of a Washington Supreme Court decision that prevents a company from recovering damages from a union that sanctioned destruction of company property. The issue in the case, Glacier Northwest, Inc. v. International Brotherhood of Teamsters Local Union No. 174, is whether the National Labor Relations Act (NLRA) preempts an employer’s state tort claim against a union for intentionally destroying the employer’s property in the course of a labor dispute. The case arose in the context…

Forty-three states and the District of Columbia added construction jobs during the past twelve months, but momentum slowed in May with only 22 states adding jobs, according to a new analysis of federal employment data released by the Associated General Contractors of America today. Association officials said the monthly employment gains lagged in May as contractors continue to cope with labor shortages and supply chain challenges. “Demand for construction appears to be outpacing the availability of workers and materials in many parts of the country,” said Stephen E. Sandherr, the association’s chief executive officer. “Contractors can’t add jobs if they…