Author: agcnews

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…

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…