Author: agcnews
In its latest Settlements Report, the AGC-supported Construction Labor Research Council (CLRC) advises that construction-industry collective bargaining agreements settled from January through September of 2022 provide an average increase in wages and benefits of 3.8 percent in the first contract year. First-year increases negotiated during the period grew by 1.0 percent since 2020, which CLRC notes is a steep rate of growth. The last time first-year increases grew by 1.0 percent, it took seven years – from 2012 to 2019 – CLRC reports. Measured by dollar amount rather than percentage, CLRC found that the average first-year increase negotiated year-to-date was…
The Pension Benefit Guaranty Corporation (PBGC) has proposed a regulation regarding interest rate assumptions in determining a withdrawing employer’s liability to a multiemployer plan, which could have significant implications for the unionized construction industry. On October 13, the Pension Benefit Guaranty Corporation (PBGC) proposed a regulation regarding interest rate assumptions in determining a withdrawing employer’s liability to a multiemployer plan. Multiemployer pension plans are common in the unionized construction industry and withdrawal liability is an employer’s share of the unfunded liabilities of a plan if an employer exits the plan. The liability can often serve as a deterrent to a contractor choosing…
The U.S. Department of Labor has put forth a new test for determining whether someone is an employee or independent contractor under the Fair Labor Standards Act that could tilt the balance in that determination towards employee status. On October 11, the U.S. Department of Labor’s (DOL) Wage and Hour Division (WHD) issued a proposed rule to establish a new test for determining who is an independent contractor versus an employee under the Federal Labor Standards Act (FLSA). If and when the proposal is finalized, it would rescind a Trump administration final rule clarifying the standard for employee versus independent contractor status under the…
In this compelling video addressing the generational gap in construction, industry veterans and newcomers alike share their perspectives on the evolving workplace culture. Ray Riojas, Civil Area Manager, reflects on the shift from the “old school thinking” of prioritizing work above all to a more balanced approach that includes remote work and flexible policies. James Kelly, Site Superintendent, emphasizes the importance of mentoring young engineers, guiding them with practical experience while fostering their skills. Amani, a quality engineer, highlights the need for inclusivity and collaboration, stressing that the younger generation seeks to advance collectively rather than individually. The video also…
The price of materials and services used in nonresidential construction jumped 12.6 percent in September from a year earlier despite a dip of 0.2 percent last month, according to an analysis by the Associated General Contractors of America of government data released today. Association officials note that the construction industry was suffering the most from inflation, adding that new Buy America rules set to go into effect as soon as next month will only make the situation more dire. “Today’s price report shows that costs for construction continue to outpace those of other industries,” said Ken Simonson, the association’s chief economist. “Furthermore,…
The Department of Homeland Security (DHS) and U.S. Immigration and Customs Enforcement (ICE) announced an extension of the flexibility in complying with requirements related to Form I‑9, Employment Eligibility Verification, due to COVID‑19. This temporary guidance was set to expire October 31, 2022. Because of ongoing precautions related to COVID‑19, DHS has extended the Form I-9 flexibilities until July 31, 2023. See the original ICE news release from March 20, 2020, for more information on how to obtain, remotely inspect, and retain copies of the identity and employment eligibility documents to complete Section 2 of Form I‑9. Please also consult ICE’s…
Price escalation and supply chain disruptions continue to register as the number one issue in construction contracts today. The absence of a price escalation clause is considered a “killer clause” for many general contractors working on private vertical construction. Public owners are taking notice as well. Now there are some success stories of public owners addressing price escalation in their contracts and through contract administration. The St. Louis Water District (“District”) looked at the ConsensusDocs 200.1 Price Escalation Clause after dialoguing with the AGC of Missouri and AGC National. Consequently, the District included price escalation language in a recent bid…
Construction Workers Now Earn Over $35 an Hour on Average, While the Sector’s Unemployment Rate Hits 3.4 Percent as Association Officials Call for Construction Education Funding and Immigration Reforms The construction industry added 19,000 employees in September as it boosted wages for hourly workers at the fastest rate in 40 years, according to an analysis by the Associated General Contractors of America of new government data. Association officials said that even with the pay raises, many contractors are still having a difficult time finding qualified workers to hire. “Contractors are raising pay faster than other sectors and are hiring more…
The construction industry is making strides towards inclusivity and diversity, and this video highlights the experiences of LGBTQ+ individuals within the field. Melissa Allen, a project manager, shares her perspective as a member of the queer community, emphasizing the importance of feeling safe and respected at work. Despite the progress, many still face unconscious biases and fears of ostracization. Dre White, a safety manager, discusses the need for open conversations and supportive environments, advocating for a culture where everyone feels valued, regardless of their background or identity. This video underscores the significance of creating a workplace where all employees can…
93 Percent of Construction firms have reported that they are experiencing material shortages and/or allocations. All firms are experiencing similar construction material availability challenges regardless of their market – highway and transportation projects, federal and heavy work, or utility infrastructure. Similarly, shortage of material is a problem which affects all regions of the country only varies slightly between regions. MATERIALS: FACT SHEETS: