Impact of Change Order Delays on Contractors
In late May, AGC members Ed DeLisle and Andy Brown testified at the House Small Business Committee hearing on change order delays and the impacts they can have on federal construction contractors. Members of Congress heard how federal agency delays in processing and paying change orders can disrupt cash flow, impact schedules, waste taxpayers’ money, and restrict opportunities for contractors to bid on additional projects. AGC called for greater transparency, oversight, and agency action to address delays in paying contractors for the work they do for the federal government.

Reduce Regulations, Increase Competition
On June 9, AGC met with Jack St. John, the Chief of Staff for the General Services Administration (GSA) and currently the agency’s highest political appointee, to discuss the current and future role for the agency and to provide AGC guidance on improving GSA. Among the topics discussed, AGC encouraged GSA to continue to consolidate and reduce federal footprint and reduce short-term leased facilities.

What Happens Between Award and Construction
In late May, AGC members met with the Department of Veteran Affairs (VA) resident engineers from across the country for an interactive training session at the VA Acquisition Academy in Frederick, MD. AGC detailed the many steps that are involved between the time a contract is awarded and a contractor breaks ground. VA resident engineers engaged in team exercises where they brainstormed timelines of the different steps involved.

Surveying AGC Members
OSHA delayed enforcement of the Respirable Crystalline Silica Standard for Construction until September 23, 2017. In the meantime, silica continues to an issue and we expect that many members still have questions. AGC would like to take this opportunity to survey members to determine how equipped they are to comply with the standard, and identify resources and outreach opportunities to meet your needs in this area. The survey should take you approximately 5-10 minutes to complete. If you have any questions, please contact Kevin Cannon at cannonk@agc.org or (703) 837-5410.

June 22, 2017
WebEd: Lean Architecture
2-3 p.m.

June 27, 2017
WebEd: Facilitating the Lego Exercise/BIM Project Team Activity in Unit 3 of the Third Edition of AGC's BIM Education Program
2 to 3 p.m.

July 13, 2017
WebEd: Fatigue Management in your Workplace
2 to 3 p.m.

July 19-21, 2017
AGC Safety & Health Conference
Denver, Colorado

July 25, 2017
WebEd: 5 Ways BIM 360 Docs Reduces Construction Rework
2 to 3 p.m.

In May, President Trump released his first budget request covering fiscal year 2018 that also looks out over the next 10 years (2018-2027). The proposal, "A New Foundation for American Greatness," calls for $1 trillion in total tax cuts over the next 10 years, while also cutting federal spending by $4.6 trillion over that same time period. The budget assumes the economy will grow by $2.1 trillion, which would reduce 10-year deficits by $5.6 trillion and balance the budget in FY 2027.

Contractors Struggle to Fill Jobs as Weekly Hours Reach Highest May Level Since Series Began in 2006; Association Officials Urge Greater Public-Sector Support for Career and Technical Education Programs
Construction employment increased by 11,000 jobs in May to the highest level since October 2008 and average weekly hours set a series high for May as contractors struggled to find enough workers to meet demand for projects, according to an analysis of new government data by the Associated General Contractors of America. Association officials urged lawmakers and other public officials to address the growing shortage of available qualified workers by funding and re-invigorating career and technical education programs.

Construction staff wages rose by 3.6 percent in 2016 and contractors are projecting wages to increase an average of 3.4 percent in 2017, according to the latest Contractor Compensation Quarterly (CCQ) published by PAS, Inc. Based on their Construction/CM Staff Salary Survey, PAS reports that increases appear to have leveled off, as noted in the following chart. PAS also points out that historically predictions are typically about .5 percent low, so year-end 2017 should exceed 3.4 percent and maybe even 2016’s 3.6 percent increase.