Author: Crystal Yates
On February 21, 2025, the U.S. District Court for the District of Maryland issued a nationwide preliminary injunction barring implementation of key provisions of two executive orders issued by Pres. Trump related to diversity, equity, and inclusion (DEI) programs. The case addresses challenges to Executive Order 14151, “Ending Radical and Wasteful Government DEI Programs and Preferencing,” and Executive Order 14173, “Ending Illegal Discrimination and Restoring Merit-Based Opportunity.” The injunction blocks the following provisions of those executive orders: The ruling does not affect other parts of the executive orders that were not challenged in the lawsuit. Consequently, some provisions remain in…
Tariffs are not the most beautiful word for the construction industry. Addressing tariffs in existing contracts are difficult in lump sum contracts that do not contain a price escalation clause. Tariffs unexpectedly increase the price of materials while fees and the contract price are fixed lump sum. Alternatively, cost-of-the-work agreements often include a guaranteed maximum price (GMP). Unanticipated material price increases due to tariffs can easily run project costs past a GMP. A profitable project can become a significant loss. Some remedies for tariff risk may apply to your existing contract – namely, a change in law and force majeure…
AGC has reported on the big court win and the next steps for federal contractors in the MVL USA, Inc. vs. United States ruling that the federal mandate to use PLAs on virtually all federal large-scale projects is unlawful. As a result, the Department of Defense (DOD) has issued a class deviation which waives PLA requirements on all solicitations. The General Services Administration (GSA) followed suit in a February 12th memo but did so as a class exception. GSA’s memo waives the requirement to use a PLA for land port of entry projects going forward. More information on GSA’s approach…
Cost-of-the-work agreements (aka “cost-plus” contracts) are commonly used in commercial construction contracting to establish the terms and conditions for a project based on the cost of the work performed.[i] The major families of standard construction contracts include a cost-of-the-work plus overhead and profit in their product offerings. Material supplies from China are already facing new increased tariffs and tariffs on products from Mexico and Canada which were announced are currently on pause (not withdrawn). In light of the disruptive nature and uncertainty tariffs cause, cost-of-work agreements are a great solution to combat this uncertainty. Cost-plus contracts help address price uncertainty.…
On January 29, Lee Zeldin’s nomination process concluded with a 56-42 vote confirming his appointment as the 17th administrator of the U.S. Environmental Protection Agency (EPA). He was sworn in that day. AGC of America submitted to the record a letter of support for Mr. Zeldin’s nomination ahead of his confirmation hearing in the U.S. Senate Committee on Environment and Public Works. At his January 16th confirmation hearing, Zeldin expressed a willingness to reach across party lines to build private sector collaboration, promote common-sense regulations, and hold the agency accountable. Shortly after taking the lead at EPA, on February 4, Zeldin announced…
(UPDATE) AGC members have 100% successfully removed the requirement to use PLAs on all twelve projects that were included or stayed in the MVL USA Inc. vs. USA case. Effectively immediately, the Department of Defense has issued guidance (available here) to remove from all current and forthcoming military construction solicitations containing the requirements to use a PLA, which were made pursuant to Federal Acquisition Regulation (FAR) subpart 22.5 and 36.104(c). AGC recently celebrated a big win for AGC members working for the federal government in the case MVL USA Inc. vs. USA, which can be found here. AGC hired outside…
The Construction Labor Research Council (CLRC) reports that collective bargaining negotiations for union craft workers in the construction industry settled in 2024 yielded an average wage-and-benefits increase of 4.7 percent, the same rate of increase as 2023.By dollar amount, the average first-year increase negotiated in 2024 was $2.90, down just slightly from last year. The CLRC noted, however, that the last two years saw significant increases compared to historical settlements and believes that the lag in multiyear contracts and inflation are now showing up in first-year settlements. The CLRC projects the increase in first-year settlements to slow in 2025-2026 but…
The union membership rate–the percent of all workers who were members of unions—for the construction industry was 10.3 percent in 2024, down from last year when it was 10.7 percent according to an annual report released January 28, 2024, by the Bureau of Labor Statistics (BLS). Union representation in the industry also declined, from 11.4 to 11.2 in 2024. In 2024 total construction employment fell by 26,000 but union membership fell by 38,000. Despite the decrease, the construction industry remains an industry with one of the highest unionization rates and is considerably higher than the 5.9 percent across all industries…
Immediately after assuming office on Jan. 20, 2025, Pres. Trump began issuing numerous executive orders. While they may not immediately impact business immigration, many of them presage changes in the business immigration landscape. The following is an analysis of several of these executive orders from that perspective: While these orders do not have an immediate impact on business immigration, they may cause an increase in administrative costs for companies with foreign workers and create retention challenges for companies. Editor’s Note: This article was written by Dillon Colucci and Rebecca B. Schechter of the law firm Greenberg Traurig, LLP, and reprinted with permission.
According to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc., construction support staff wages are to rise by an average 4.2%. The prediction is based on data gathered from over 252 companies in the 21st edition of PAS’s Construction Support Staff Salary Survey. This is down from the actual increase of 4.7% for 2023. Looking forward, PAS thinks 2025 support staff increases will likely mimic 2024 activity, unless construction conditions change. Additionally, according to PAS’s 2024 Benefit Survey, more firms have improved their benefit programs than have reduced them. In 2024, the percentage of firms improving their benefit…