Category: News Line

In his first 100 days in office, President Trump took a variety of actions that impact ABC members culminating in the swearing in of U.S. Department of Labor Secretary R. Alexander Acosta on April 28. Read a statement by ABC President and CEO Michael Bellaman praising President Trump for taking important steps to create a pro-growth business environment and a summary of those actions.

“In his first 100 days in office President Trump has taken needed action to free business owners from unnecessarily burdensome regulations that have long hindered economic growth. ABC appreciates President Trump’s executive orders curbing Washington’s appetite for over regulation and collaboration with Congress to eliminate illegal and duplicative Obama administration regulations like the ‘blacklisting’ and ‘Volks’ rules.

“By valuing input from industries harmed by regulations that are often well-intentioned, but poorly crafted, President Trump can ensure a well-trained, safe and productive workforce without needlessly hindering economic growth. ABC’s 21,000 member companies employ a skilled and highly trained workforce ready to rebuild our nation, and we look forward to continuing to work with the Trump administration to fulfill his election night commitment to ‘fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals.’ President Trump can also ensure ‘every single American will have the opportunity to realize his or her fullest potential,’ as he pledged on election night, by taking executive action to ensure that discriminatory project labor agreements cannot be mandated on projects funded by federal tax dollars.”

A summary of the Trump administration’s actions in his first 100 days that affect the construction industry is available here.

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U.S. Department of Labor (DOL) Secretary R. Alexander Acosta was sworn in on April 28, giving President Trump a full cabinet just ahead of his 100th day in office. ABC President and CEO Michael Bellaman congratulated Secretary Acosta in a statement released shortly after he was confirmed by the U.S. Senate and committed to working with DOL to address the needs of the construction industry. 

 “Associated Builders and Contractors looks forward to working with Secretary Acosta to accomplish the U.S. Department of Labor’s vital mission of ensuring the safety, equitable treatment and advancement of all American workers without needlessly hindering economic growth. ABC and our 21,000 members look forward to partnering with DOL to develop a plan to fill the construction industry’s well-documented shortage of skilled labor with American job seekers. We are eager to work with Secretary Acosta to advance policies that expand job training opportunities, create safe and healthy jobsites and grow the American economy.”

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First Lady Melania Trump dedicated the Bunny Mellon Healing Garden at the Children’s National Medical Center in Washington, D.C., marking its official grand opening on April 28. ABC member Davis Construction served as the general contractor and donated preconstruction, project management and executive leadership services, In addition, Davis did not charge a construction fee to build the space. This gift was valued in excess of $200,000.

The 7,200-SF garden includes a fountain, trees, ambient lighting, benches and a multitude of plants overlooking the Capitol. Special care was taken to select plant materials that met infection control standards. The new space was built on a gravel rooftop which was not originally intended to hold the weight of a garden. As a result, the space required significant structural upgrades. Over 3,000 hours of steel welding and reinforcement took place directly above an existing 24-hour laboratory that services the entire Hospital. Temporary exhaust fans and carbon filters were used, along with other air quality and noise control measures, to eliminate smoke, odor, dust and noise. The outer perimeter of the garden, which faces the Capitol, is enclosed with a 7-FT high structural glass wall.

“Everyone involved wanted this project to exceed expectations. This was always about the children. We truly believe that the patient is our client, and we kept that front of mind throughout the entire project,” said Jon Hancher, Vice President of Davis Construction. 

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CII’s Annual Conference is the nation’s premiere capital projects conference, bringing together the brightest minds in academia, industry experts and innovative researchers. Discover how CII can help develop your capital projects and build shareholder value for your company. You will hear from a great line-up of some the industry’s most dynamic leaders, industry panelists, and keynote speakers. This is an event you can’t afford to miss.

If you would like an invitation, please email Jenny Bien at jenny.bien@cii.utexas.edu

Sign up by April 30th to save $200 on registration! Register Now.

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The White House rolled out its tax proposal, which aides have billed as “the biggest individual and business tax cut in American history” on April 26. Treasury Secretary Steve Mnuchin and National Economic Council Chair Gary Cohn laid out President Trump’s principles for reform from behind the podium, and a one-page document was distributed to the press.

The highlights:

• Establishes 15 percent business tax rate (applicable to corporations and pass-through entities)
  • Down from the current top rates of 35 percent and 39.6 percent, respectively
• Repeal of the estate tax
• Repeal of the alternative minimum tax 
• Repeal of the Affordable Care Act’s 3.8 percent Net Investment Tax
• Establishes top individual rate of 35 percent (currently 39.6 percent)
• Reduces seven individual brackets to three of 10, 25 and 35 percent
• Doubles the standard deduction

Mnuchin and Cohn both said that the White House is engaged in ongoing talks with House and Senate leaders. On Wednesday afternoon, House Speaker Paul Ryan, U.S. Senate Leader Mitch McConnell, House Ways and Means Committee Chairman Kevin Brady and Senate Finance Committee Chairman Orrin Hatch released a joint statement praising the outline.

According to the White House release, the Trump Administration will start holding listening sessions with stakeholders next month, giving ABC and its members an opportunity to weigh in.

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Construction Executive (CE) is proud to announce its latest editorial award, a Silver Azbee from the Association of Business Publication Editors (ASBPE) for Individual Profile – Mid-Atlantic Region. The article, authored by Managing Editor Lauren Pinch, details the career trajectory and management philosophy of ABC 2016 Chair, David Chapin. The full article can be viewed here. 

The Azbee Awards are highly competitive and celebrate the highest quality writing and design in business-to-business, trade, association and professional publications. The awards honor all types of publications including magazines, newspapers, newsletters, websites and digital media. To view a full list of the 2017 winners, please click here. 

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A new report released by the Empire Center for Public Policy on April 24 found that prevailing wage requirements inflate the cost of publicly funded construction projects in New York by between 13 percent and 25 percent. The varying percentages are based on the area or region of the state. Taxpayers can expect to pay billions in extra costs, given the tens of billions the state plans to spend on public projects over the next five to 10 years.  

Last year, the New York Independent Budget Office (IBO) released a report on the impact prevailing wage requirements would have on affordable housing projects built with the 421a property tax break. IBO estimated wage requirements would cost the city an additional $4.2 billion, increasing affordable housing construction costs by 23 percent or $80,000 per unit.

The report, entitled “Prevailing Waste: New York’s Costly Public Works Pay Mandate,” also notes that the New York prevailing wage rates include fringe benefits, the entirety of which do not go directly to workers but instead are being used to bolster underfunded and struggling union pension plans. 

ABC opposes wasteful prevailing wage laws because they contain outdated job restrictions that do not match the needs of today’s competitive construction business environment. Prevailing wage requirements discourage many qualified small and minority-owned contractors from bidding on public projects. State governments’ complex and inefficient wage rate determinations and work restrictions make it difficult for them to compete with better-capitalized corporations. 

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On April 7, Arkansas Gov.Asa Hutchinson signed a bill repealing the state’s prevailing wage law. The legislation, SB 601 (Act 1068), was approved by the Arkansas House of Representatives on March 30 by a vote of 70-24; the Arkansas Senate passed the bill on March 21 by a bipartisan vote of 28-5. Arkansas is now the 22^nd state without a prevailing wage and the second state to take significant action on the issue this year. Kentucky signed a prevailing wage repeal bill into law in January. In 2015, Nevada made significant reforms to its prevailing wage law, while Indiana and West Virginia joined the list of states without a prevailing wage. 

“Associated Builders and Contractors commends the work of the Arkansas legislature for taking action to create value for taxpayers and create opportunities for Arkansas contractors previously deterred by the state’s anti-competitive prevailing wage mandate,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “The number of states choosing to do away with costly and archaic prevailing wage requirements continues to grow and ABC looks forward to supporting efforts to repeal or reform inefficient prevailing wage laws in Ohio and nearby Missouri.” 

ABC released its latest Merit Shop Scorecard rankings in November 2016. The meritshopscorecard.org website reviews and grades state-specific policies and information significant to the success of the commercial and industrial construction industry. The scorecard grades states on their policies on prevailing wage and project labor agreement (PLA) mandates and Right to Work status, as well as their construction job growth rate, commitment to developing a well-trained workforce, career and technical education (CTE) opportunities and results, and use of public-private partnerships (P3s). Plagued in part by its prevailing wage, Arkansas’ business environment ranked 20th in the country.

ABC opposes wasteful prevailing wage laws because they contain outdated job restrictions that do not match the needs of today’s competitive construction business environment. Prevailing wage requirements discourage many qualified small and minority-owned contractors from bidding on public projects. State governments’ complex and inefficient wage rate determinations and work restrictions make it difficult for them to compete with better capitalized corporations. Studies have shown that state prevailing wage laws can needlessly inflate construction costs by as much as 38 percent.

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ABC thanked Iowa Gov. Terry Branstad for signing legislation into law to ensure the government cannot mandate PLAs on public construction projects. The bill, SF 438, codifies Gov. Branstad’s previous executive order, which prevented state and local governments procuring state and state-assisted construction projects from encouraging or prohibiting PLAs in contract solicitations, preventing a future governor from mandating PLAs through executive order. It also extends government neutrality toward PLAs to projects funded by local governments. 

Gov. Branstad has long supported government neutrality toward PLAs, issuing Executive Order 69 in January 2011, which prevented state and local governments procuring state and state-assisted construction projects from encouraging or prohibiting PLAs in contract solicitations. Signing SF 438 into law allows all qualified contractors to compete for construction contracts funded by Iowa taxpayers on a level playing field and ensures that future governors cannot mandate discriminatory PLAs on public construction projects through an executive action.

“Iowa’s law supporting fair and open competition boosts national momentum against government-mandated PLAs and guarantees that Iowans will continue to receive the best quality product at the best possible price for taxpayer-funded schools, hospitals, roads and other public construction projects,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “Governor Branstad and the Iowa legislature sent a message that they are serious about generating value for taxpayers and creating jobs and opportunities for all of Iowa’s construction workers and businesses. Associated Builders and Contractors is hopeful that similar policy addressing anti-competitive and costly government-mandated PLAs, which steer construction contracts to unionized firms and discriminate against 86 percent of the U.S. private construction workforce, will be implemented on federal and federally assisted construction projects through executive action by President Trump and legislation recently proposed in Congress.”

“On behalf of the merit shop contractors we represent, Associated Builders and Contractors of Iowa thanks Governor Terry Branstad for signing this legislation that sets a fair standard and rewards free enterprise,” said ABC of Iowa President and CEO Greg Spenner. “We also appreciate the hard work from legislators who pushed the bill forward. By restricting the use of discriminatory project labor agreements, more local companies are now better positioned to bid on public projects. This will ultimately increase competition and lower costs. The real winners today are Iowa’s taxpayers.”

When mandated by a government agency on a taxpayer-funded project, PLAs drive up the cost of construction projects between 12 percent and 18 percent, according to a series of academic studies. PLAs typically ensure construction contracts are awarded only to companies that agree to recognize unions as the representatives of their employees on that job; use the union hiring hall to obtain workers at the expense of existing qualified employees; obtain apprentices through union apprenticeship programs; follow inefficient union work rules; pay into union benefit and multi-employer pension plans workers will never benefit from unless they meet vesting requirements; and force workers to pay union dues and/or join a union as a condition of employment.

In 2009, President Obama signed Executive Order 13502, which strongly encourages, on a case-by-case basis, government-mandated PLAs on federal construction projects and permits state and local governments procuring federally-assisted construction contracts to mandate PLAs. In January 2017, ABC and a coalition of construction and industry stakeholders asked President Trump to issue an executive order similar to President Bush’s Executive Orders 13202 and 13208, which prohibited government-mandated PLAs on $147.1 billion worth of federal construction contracts and hundreds of billions of dollars’ worth of federally assisted projects.

A total of 22 states (20 since 2011, including Iowa) have adopted similar legislation or executive action ensuring fair and open competition on state and local projects. This year, a number of states may pass similar bills, such as Wisconsin’s SB3, which was sent to Gov. Scott Walker’s desk on March 9. In 2015, West Virginia became the 22nd state to ban government-mandated PLAs when Gov. Earl Ray Tomblin signed the bipartisan Establishing Fair and Open Competition in Governmental Construction Act (SB 409). Gov. Tomblin is the first Democratic governor to sign a bill prohibiting PLA mandates. Also in 2015, Arkansas Gov. Asa Hutchinson signed into law SB 426, a bipartisan bill prohibiting PLA mandates that had previously passed the state Senate and House of Representatives in unanimous votes. All legal challenges to similar state and federal laws executive orders have failed.

On March 28, a U.S. House of Representatives committee favorably reported the ABC-supported Fair and Open Competition Act (H.R. 1552) out of committee. The bill, sponsored by Rep. Dennis Ross (R-Fla.), would extend the same neutrality towards the use of PLAs adopted in Iowa to federal and federally assisted construction contracts. The bill was also introduced in the U.S. Senate (S. 622) by Sen. Jeff Flake (R-Ariz.).

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ABC applauded Gov. Scott Walker (R-Wis.) for signing Act 3, which will promote fair and open competition on contracts for construction services funded by Wisconsin taxpayers, The act will ensure that the government cannot mandate controversial project labor agreements (PLAs) on state, state-assisted and local construction projects and that merit shop contractors can compete for projects funded by their own tax dollars on a level playing field.

“By restricting the use of anti-competitive and costly government-mandated project labor agreements, Gov. Walker and the state legislature have created the conditions for all of Wisconsin’s qualified business and workers—union and nonunion alike—to compete on a level playing field to build publically funded construction projects,” said ABC Vice President of Regulatory, Labor and State Affairs Ben Brubeck. “Congress and the Trump administration should follow the lead of Wisconsin and 22 other states by immediately enacting a similar policy that will maximize competition, reduce costs and guarantee the fiscal accountability taxpayers deserve on federal and federally-funded construction projects.

“As Americans consider proposals to rebuild our nation’s deteriorating infrastructure, it is imperative that lawmakers pass measures that support fairness and efficiency in the government’s procurement of construction services to ensure that taxpayers receive the best possible return on investment,” said Brubeck. “Unfortunately, this cannot be accomplished when government agencies cater to special interests by mandating PLAs, which steer contracts to unionized firms and create a labor monopoly for unionized workers, who make up just 14 percent of the construction industry nationally.”

Gov. Walker signed the bill at the construction jobsite of AmeriLux International, a De Pere manufacturer of building materials, which is being built by ABC member Keller Inc., Kaukauna, Wis.

“Wisconsin’s merit shop construction community thanks Gov. Walker, Sen. Leah Vukmir, Rep. Rob Hutton, the legislature and leadership for supporting this common-sense policy, which will create local jobs for the Badger State’s construction industry,” said ABC Wisconsin President John Mielke. “As Governor Walker said today, it’s a great day for Wisconsin taxpayers and open competition.”

When mandated by a government agency on a taxpayer-funded project, PLAs drive up the cost of construction projects between 12 percent and 18 percent, according to a series of academic studies. PLAs typically ensure construction contracts are awarded only to companies that agree to recognize unions as the representatives of their employees on that job; use the union hiring hall to obtain workers at the expense of existing qualified employees; obtain apprentices through union apprenticeship programs; follow inefficient union work rules; pay into union benefit and multi-employer pension plans workers will never benefit from unless they meet vesting requirements; and force workers to pay union dues and/or join a union as a condition of employment. In the past week, ABC has argued against PLA mandates in editorials in The Wall Street Journal and The Hill.

In 2009, President Obama signed Executive Order 13502, which strongly encourages, on a case-by-case basis, government-mandated PLAs on federal construction projects and permits state and local governments procuring federally-assisted construction contracts to mandate PLAs. In January 2017, ABC and a coalition of construction and industry stakeholders asked President Trump to issue an executive order similar to President Bush’s Executive Orders 13202 and 13208, which prohibited government-mandated PLAs on $147.1 billion worth of federal construction contracts and hundreds of billions of dollars’ worth of federally assisted projects.

Wisconsin is the 21^st state to adopt legislation or executive action ensuring fair and open competition on state and local projects since 2011. Iowa Gov. Terry Branstad signed legislation on April 13 that codifies his 2011 executive order and guarantees government neutrality toward PLAs on state, state-assisted and local public construction projects (SF 438). In 2015, West Virginia became the 22^nd state to ban government-mandated PLAs when Gov. Earl Ray Tomblin signed the bipartisan Establishing Fair and Open Competition in Governmental Construction Act (SB 409). Gov. Tomblin was the first Democratic governor to sign a bill prohibiting PLA mandates.

On March 28, a U.S. House of Representatives committee favorably reported the ABC-supported Fair and Open Competition Act (H.R. 1552) out of committee. The bill, sponsored by Rep. Dennis Ross (R-Fla.), would extend neutrality toward the use of PLAs to federal and federally assisted construction contracts. The bill was also introduced in the U.S. Senate (S. 622) by Sen. Jeff Flake (R-Ariz.).

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