Prices for goods and services used in construction costs were unchanged overall from June to July, but months of steep increases over the past year have squeezed the profits of contractors, whose bid prices have not matched the cost shocks, according to an analysis by the Associated General Contractors of America of new Labor Department data. Association officials warn that the impact of recent and threatened tariffs are likely to put contractors in further financial peril.
On August 10, the Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) announced its plan to start scheduling focused reviews of federal contractors beginning in Fiscal Year 2019. Directive 2018-04 directs OFCCP staff to “work towards ensuring that a portion of future scheduling lists, starting with Fiscal Year 2019, include focused reviews as to each of the three authorities that OFCCP enforces.”
Early Bird Cutoff Date Extended One Week Only!
In an August 13 letter to the U.S. Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers, AGC reiterates support of the agencies’ efforts to repeal and replace the 2015 “Waters of the United States” (WOTUS) rule while maintaining the current regulatory “status quo” in the interim. The construction industry depends on receiving Clean Water Act permits in order to secure financing and approval to construct new projects. AGC urges the agencies to provide continuity and predictability for near-term business planning under the current framework while they continue to work on the next steps.
In an August 13 letter to the U.S. Environmental Protection Agency (EPA), AGC says that consistent and transparent cost-benefit analysis can improve regulations and limit arbitrary and capricious decisions. The construction industry is extensively regulated by the agency; and EPA regulations account for most of the annual estimated benefits and costs of all major federal regulations. AGC urges the agency to apply cost-benefit analysis principles to the maximum extent possible under law and consider the full range of costs imposed on small businesses.
Apply for AGC’s Diversity & Inclusion Awards by October 15
Construction employment increased by 19,000 jobs in July and by 303,000 jobs over the past year, reaching a 10-year high, while the industry’s unemployment rate and level hit an all-time low, according to an analysis of new government data by the Associated General Contractors of America. Association officials said it was likely firms would have added even more workers if they could find qualified candidates to hire.
U.S. Environmental Protection Agency (EPA) Acting Administrator Andrew Wheeler faced members of the Senate Environment and Public Works Committee at a hearing on Aug. 1 regarding EPA’s agenda.
In line with an AGC recommendation, on July 27 the Fish and Wildlife Service withdrew two policies from 2016 regarding mitigation and Endangered Species Act compensatory mitigation — indicating that the Service lacks the authority to require the "net conservation gain" goal that underpinned the policies. AGC submitted comments to the Service earlier this year on these policies and urged the Fish and Wildlife Serve to remove the net gain goal, stating that it goes above and beyond the law.
On August 1, the Department of Labor’s (DOL) Office of Federal Contract Compliance Programs (OFCCP) released a set of practical expectations for contractors when undergoing an audit or otherwise interacting with the agency. Under this new guidance, federal contractors will have opportunities to provide input on training and additional compliance assistance, see a response time of three-to-four business days on inquiries, and get feedback on ongoing investigations.