On May 31st FASB tentatively adopted the Construction Industry FASB Coalition-CIFC (includes MCAA) compromise disclosure, though FASB continues to discuss "add-ons" to the draft. FASB met on June 22nd to discuss different options that the CIFC opposes. They plan to meet on June 29th to vote on a final proposal for quantitative disclosures. This will be followed by yet another vote on other measures. Members of Congress, to include US Rep. Stephen F. Lynch (D-MA), have signed on to a letter to support the option put forth by CIFC. Contact New England MCA / MSCA for a copy of the CIFC comments on the issue and the Congressional letter.
MA Worker Covered for RI Injury
This story was reported on in last month's newsletter. The First Circuit Court of Appeals ruled that MA law prevails as to the Worker's Compensation Act, rather that RI law in a recent case. A MA resident, employed from an MA based temporary employment agency by an out of town GC, was injured while working on an RI jobsite. The First Circuit concluded that RI interests were insufficient to outweigh the MA greater interests in the matter. Contact the New England MCA / MSCA office for more information.
Federal Construction Projects Stalled or Cancelled
The 2011 Federal budget passed in April has gutted construction budgets for all agencies including GSA and DOD. The GSA construction budget suffered a 91% decrease from 2010 to 2011. The GSA budget for building renovation was also severely cut. $86 million in land port construction in Maine has been delayed at best and possibly cancelled. Andrew Goldberg, senior director for American Institute of Architects stated that future budgets will be just as bad.
Immigration Crackdown Intensifies
The Obama administration intensified their crackdown on employers who hire illegal immigrants. They have notified over 1000 employers in all 50 states that they will audit their hiring records. These actions have drawn criticism from the US Chamber of Commerce and immigration advocate groups. Employers of all sizes were notified they must hand over I-9 forms. The audits can lead to both civil and criminal penalties.
Contractors to Comply with Environmental Regs
As of May 31st, in accordance with Executive Orders, Federal contactors are required to "support the goals of an agency's environmental management system" under a sustainable acquisition rule (76 Fed. Reg. 31,395). Agencies (DOD, NASA and GSA) must ensure that 95% of new contract actions, including task and delivery orders for products and services that meet agency performance requirements are: energy efficient, water efficient, biobased, environmentally preferable, non-ozone depleting, of recycled content and recovered materials.
House Rejects Repeal Efforts on PLAs and Prevailing Wage
In early June the US House voted down measures that would repeal Davis-Bacon wages on Homeland Security projects and the Obama Executive Order encouraging PLAs. SMACNA released a statement that said "Smart construction management calls for the federal government, like private sector, to have the option to consider and establish PLAs when necessary and appropriate."
Mass AG Ruling Stops Sub-subcontracting
Attorney General Martha Coakley issued a decision stating that DCAM's practice of requiring trade contractors to sub out work to minority or women owned business is in violation of the MA bidding statutes. This decision supports the rule that subcontractors must self-perform their work not covered under Paragraph E.
Bank of America Launches Energy Program
Bank of America Corp. has launched a $55 million program to encourage energy-efficiency improvements to older buildings. This program will grant low-cost loans to Community Development Financial Institutions (CFDI) specializing in energy retrofits. B of A will select up to 12 CFDIs across the country. There are numerous CFDIs throughout the New England MCA / MSCA area. Contact the New England MCA / MSCA office for a contact list.
MCAA President Joins in Roundtable
MCAA President Mark Rodgers joined in a Specialty Contractors Roundtable in a recent issue of ENR. Rodgers, along with other national association presidents and executives, commented on the construction forecast, green building, OSHA regulations and other industry issues. On a question regarding "new markets", President Rodgers cited the expanded role on BIM in the mechanical construction industry. He also stated that contractors will need to focus on collaborative relationships, value added services and branding going forward.
UA / IAPMO Partner on Reference Manual
The United Association (UA) and the International Association of Plumbing and Mechanical Officials (IAPMO) have collaborated on the 2nd edition IAPMO Backflow Prevention Reference Manual. The manual is a merger of IAPMO's 1st edition and the UA's Cross-Connection Control Manual. UA Director of Plumbing Services, Gary Hamilton, states "This manual will serve our industry as a valuable resource and training tool for the protection of potable water systems". For more information go to: www.iapmo.org
Construction Related Fatalities Decline Again
OSHA has announced that construction related fatalities continued to trend down dramatically for the third straight year. Revealing the 2009 results at a recent national convention, they showed a 14% decline from 2008. Officials say some of this may be attributable to the decline in construction hours starting in 2008. OSHA officials are confident that the new Crane and Derricks rule will have a positive effect on construction safety. The 10 most frequently cited OSHA violations in FY 2010 are as follows: scaffolding, fall protection, ladders, fall protection training, hazcom, general safety and health, head protection, excavation, eye / face protection and aerial lifts.
NLRB Rule Speeds Up Union Elections
The National Labor Relations Board (NLRB) recently voted to adopt a proposed regulation that would shorten the time employers have to respond to union organizing campaigns. The rule changes would reduce by several weeks the current average period of 40 days between the submission of union cards and the holding of a union election. The accelerated time frame would come from simplifying procedures, deferring litigation and setting shorter deadline for hearings and filings. The NLRB adopted the proposed regulations by a 3-1 vote with Republican member Brian Hayes casting the lone dissenting vote. The NLRB will now accept formal comments for a period of 60 days.
FMI Surveys Contractors
According to a recent FMI survey, as competition increases and backlogs drop, contractors are focusing more on business development. FMI surveyed 80 contractors throughout the country. 73% said they were spending more time or money on business development now than prior to 2008. They also said they were allocating these resources through increased personal involvement by business owners and senior management. Those who said they were not allocating more assets to these efforts said they were focusing more on productivity, cost cutting and estimating.
