News

The AGC Project Delivery Committee released Qualifications Based Selection of Contractors on August 24.  Qualifications Based Selection (QBS) is a procurement method in which the final criteria for selection are qualifications and demonstrated competence without consideration of price/cost until contract negotiation.QBS of contractors is emerging as one response to the demands of the current marketplace, wherein owners are increasingly seeking collaborative early contractor involvement.  This white paper explores the trend of QBS of contractors, discusses QBS benefits and challenges, considers how QBS works with various project delivery systems and offers owner suggestions for QBS best practices.   Qualifications Based Selection of Contractors was developed by the QBS Working Group of the AGC Project Delivery Committee and can be found at www.agc.org/projectdelivery, or by clicking here.

A rule requiring federal contractors and subcontractors to use the Department of Homeland Security U.S. Citizenship and Immigration Services' E-Verify system to verify their employees' authorization to work in the U.S. is now in effect.  The rule applies to federal solicitations and contract awards government-wide beginning September 8.The FAR Council issued the final rule in November 2008.  In response to a legal challenge to the rule and in order to give the new administration time to fully review the matter, the government agreed to suspend the rule on three separate occasions, but, in a July 8 statement, DHS Secretary Janet Napolitano announced that DHS will "push ahead with full implementation" of the rule without further delay.The rule requires the insertion of a new clause in certain federal contracts and subcontracts.  Prime contracts below the simplified acquisition threshold of $100,000 and those with performance terms of less than 120 days are excluded.  The clause requires the contractor to use E-Verify to confirm employment eligibility of all new employees hired during the contract term and all current employees assigned to work on a federal job within the U.S.  It also allows, but does not require, the federal contractor to use E-Verify to confirm eligibility of all employees, regardless of whether they are assigned to work on a federal job.  Currently, use of E-Verify to confirm anyone other than a new hire (including applicants and current employees) is prohibited. The rule applies only to employers with direct contracts with the federal government and, via a flow-down requirement, to their subcontractors.  It does not apply to employers working only on federally funded projects or on other projects not under contract with a federal agency.Although the litigation continues, contractors are advised to carefully review all new solicitations and contracts for federal projects and comply with any E-Verify requirements at this time.  AGC will continue to monitor all related litigation and legislation and will report on significant developments.Click here for the E-Verify Supplemental Guidance for Federal Contractors issued by USCIS on September 8.  Click here for DHS's list of Frequently Asked Questions (FAQ's) for Federal Contractors and E-Verify.  Click here for more information about critical components of the rule.  Click here for information about free webinars on the E-Verify program.Further guidance on immigration compliance is available in an MP3 download of a live educational session held at AGC's Annual HR Professionals Conference in June 2008.  An immigration law update will also be provided at AGC's next HR Professionals Conference, which will take place October 27-29, in Atlanta, Ga. Click here for conference details and registration.

Join your AGC colleagues at the PGA National Resort and Spa in Palm Beach Gardens, Fla., for the AGC Highway & Utilities Contractors Issues Meeting. This meeting is the premier national event for contractors and related businesses involved in every aspect of highway and utility construction to hear about and discuss issues and trends in these markets. The hotel is only $179.00/night, which includes the resort fee. The cut-off date for hotel reservation is Friday, October 16, so don't miss out on your chance to attend.New to this year's conference, we will offer separate Utility and Highway tracks that will converge with issues that affect both highway and utility contractors.  Agenda highlights include:Joint Topics·         Washington Outlook: SAFETEA-LU Reauthorization, Clean Water Trust Fund and other pending legislation.·         How Recent Court Decisions Will Impact Your Business·         Green Infrastructure: What Does Green Mean for the Future of Highway & Utility Construction?·         Virtual Design for Horizontal Construction - Software Capabilities, Equipment Interface, and Case Studies ·         Ritchie Brothers Golf TournamentMunicipal and Utilities Track:·         Water Supply Impacting State Priorities for Construction & Design of Utilities·         Financing Water Infrastructure, Panel Discussion with State Finance Experts and Water Authorities·         Increasing Use of Alternative Project Delivery Methods: Panel Discussion with Expert Construction and Engineering PractitionersHighway and Transportation Track:·         Alternative Bidding Asphalt vs. Concrete: Missouri's Formula·         Florida's Experience with Alternative Project Delivery·         Market Potential of High Speed Rail·         AGC's New Highway Worker Safety ProgramClick here for registration, travel and hotel information.For additional information, please contact Brian Deery at deeryb@agcc.org or (703) 837-5319 or Perry Fowler at fowlerp@agc.org or (703) 837-5321.

A September 9 report from the latest Beige Book, a summary of informal soundings of business conditions, "indicate that economic activity continued to stabilize in July and August."  The districts are referred to by the name of their headquarters city. "Relative to the last report, Dallas indicated that economic activity had firmed, while Boston, Cleveland, Philadelphia, Richmond, and San Francisco mentioned signs of improvement. Atlanta, Chicago, Kansas City, Minneapolis, and New York generally described economic activity as stable or showing signs of stabilization; St. Louis remarked that the pace of decline appeared to be moderating. Most Districts noted that the outlook for economic activity among their business contacts remained cautiously positive."The Beige Book was also a bit more upbeat about homebuilding but not about conditions in nonresidential construction and real estate. Residential "construction remained at low levels overall, although Chicago and Dallas reported a small increase in activity. Reports on commercial real estate markets indicated that demand for space remained weak and that construction continued to decline in all Districts. Atlanta, Philadelphia, Richmond, and San Francisco reported that vacancy rates increased, while rates held steady in the Boston and Kansas City Districts and were mixed in New York. Boston, Dallas, Kansas City, Philadelphia, and Richmond commented that the demand for space remained weak. Commercial rents declined according to Boston, Chicago, New York, Philadelphia, and Richmond. Rent concessions were reported in the Richmond and San Francisco markets, and Richmond noted that some landlords had postponed property improvements in an effort to conserve cash. Construction remained at very low levels, with modest improvements noted in public construction in the Chicago, Cleveland, and Minneapolis Districts."The reports are consistent with what nonresidential contractors have been telling AGC: outside of stimulus money for highway construction and a few other niches, conditions have not brightened at all.To report what you are encountering, email simonsonk@agc.org. For more information on AGC Cheif Economist Ken Simonson's weekly economic newsletter, visit http://www.agc.org/cs/news_media/newsletters.

Building Information Modeling (BIM) is an emerging technology that is rapidly gaining acceptance throughout the architecture, engineering and construction (AEC) industry, and specialty contractors have been at the forefront. AGC's BIM Education Program provides individuals with the background they need to implement and use BIM technologies and practices.The first course of this program, BIM 101: An Introduction to Building Information Modeling, was released in April 2009 and provides participants a broad overview of BIM and introduces the important concepts that will be necessary for the advanced courses and BIM adoption. The Participant's Manual and Instructor's Guide for this course can be purchased through the AGC Bookstore and classes are currently scheduled at many AGC Chapters.The second course in this program, Unit 2: BIM Technology, will be released in late 2009 and will provide participants with a broad understanding of all available BIM tools and how they work together on a project. Registration is now open for two field tests, the first at the AGC of Metropolitan Washington, D.C., on September 24 and October 13 (register and learn more here), and the second in conjunction with the Fall BIMForum meeting on October 7 in Philadelphia, Pa. (register and learn more here). Many AGC Chapters are also scheduling courses for Winter 2010.In 2010, further courses will be developed to: examine the legal and risk management issues that are important when utilizing BIM on a project; study the work-flow process on BIM projects; take an in-depth look at case studies; and study emerging trends in BIM.Additional information can be found at www.agc.org/BIMEP or by emailing curriculum@agc.org.

Developed by AGC and Zurich Services Corp, the Highway Worker Safety Program focuses on the leading causes of fatality and injury for employees managing and performing work on highways in America. In this webinar, learn how to effectively navigate and use this program to train supervisors and empower company employees to work safely. Understand the key exposures that cause 90% of all highway worker deaths and the best controls to eliminate and minimize these exposures.  Learn more at www.agc.org/HWSP.

Whether you are a current subscriber to ConsensusDOCS standard construction contract documents or not, you can benefit from learning why more and more people are using ConsensusDOCS as their contractual foundation.On September 28, 2009 from 2:00 pm to 3:30 p.m. ET, AGC will host a free ConsensusDOCS webinar, titled "Why Owners Choose ConsensusDOCS Over AIA."  Our panel of experts will compare and contrast select AIA documents.  They will also discuss the benefits of using ConsensusDOCS standard construction contract documents to help save you time and money.  After a 60-minute presentation, you will have an opportunity to ask the panelists questions.Register today for this free webinar sponsored by AGC of America!  Please contact Megan McGarvey at mcgarveym@agc.org or 703-837-5369 should you have questions.

This summer, the AGC Specialty Contractors Council asked AGC specialty contractor members to complete a survey that will be used to guide the future of the SCC and will ensure that its interests are aligned with those of AGC's specialty contractor members.  Thank you to the 720+ members who completed this survey! For more information on AGC of America's Specialty Contractors Council and its Executive Committee, please visit www.AGC.org/SCC.

As an ongoing leader in construction industry contract documents, ConsensusDOCS has done it again!  In June 2009, ConsensusDOCS, the unique collaboration of 22 leading industry associations, released its new subsubcontract agreement - the ConsensusDOCS 725. It is now easier for subcontractors to contract with subsubcontractors!  ConsensusDOCS has created a new standard contract document specifically designed to address the unique characteristics of subsubcontracting.  Replacing the need to use a purchase order or try to alter a subcontract, a fair contract document is now available to address the increasing specialization of the industry and the greater use of sub-subcontractors.  This straight-forward six-page agreement provides an ideal base for the somewhat simpler subsubcontracting relationship.  The ConsensusDOCS 725 includes essential provisions addressing issues including safety, change orders, payment, indemnity and much more.The ConsensusDOCS 725 Subsubcontract Agreement also coordinates important flow-down clauses and incorporates similar terms to upstream agreements.  Additionally, the ConsensusDOCS 725 contains flexible provisions for the incorporation of exhibits to address scope of work, schedule, insurance and other subjects.  While modified to address the special needs of subsubcontracting, the new subsubcontract document is still based upon the risk allocation philosophy found in the rest of the ConsensusDOCS family.This new ConsensusDOCS subsubcontracting agreement, as well as every document in the ConsensusDOCS family, was developed through a collaborative effort of a team of professionals representing every part of the construction process, including designers, owners, contractors, subcontractors and surety professionals.  The organizations endorsing these agreements, including AGC of America (a founding sponsor), believe that they represent a fair and reasonable consensus among the collaborating parties of allocation of risk and responsibilities in an effort to appropriately balance the critical interests and concerns of all project participants.All project stakeholders affected, directly or indirectly, by subsubcontracting practices would benefit in using the new ConsensusDOCS 725 Standard Subsubcontract Agreement. Please visit the AGC Contracts Website for more information.  All AGC members receive a 20% discount on all ConsensusDOCS purchases through the AGC Bookstore.

Current subscribers won't want to miss out on the free ConsensusDOCS upgrade featuring 11 new standard construction contract documents, including a Federal Subcontract and Subsubcontract.  In direct response to customer feedback, the new release also incorporates a software feature allowing users to choose whether or not to print the ConsensusDOCS endorsing organization logo box on their contracts.Upgrade today by visiting the ConsensusDOCS powered by DocuBuilder 6.3 Download Center.AGC members receive a 20% discount on all ConsensusDOCS products when purchased through the AGC Bookstore.Please contact Carrie Ciliberto at cilibertoc@agc.org or 703-837-5367 for additional information.