According to Roy Norton, Canada's consul general in Detroit, Canada is preparing to begin acquiring parcels of Detroit land for their new bridge construction project. The name of new bridge will be the New International Trade Crossing (NITC). NITC will be located two miles south of the Ambassador Bridge. The goal of NITC is to reduce the traffic bottleneck on current border crossings and provide highway access to Canada from I-75, therefore lowering traffic in residential communities. Although speculation begins to build as to whether the US government will fund $200 million of a $2 billion project, Canadian officials do not want to delay the project and estimate to have a majority of the parcels purchased by 2015.The remaining parcels are estimated to be acquired in 2016 depending on length of condemnation proceedings but residents' refusal to sell won't delay bridge construction. The project completion date is set for 2020.

Canada will be providing majority of the cost but request the US to pay a small portion and build a customs plaza for car and truck inspections. In order for NITC to have a US customs plaza, 1,000 parcels of land will need to be acquired from Detroit's Delray neighborhood. Many Delray residents are enthusiastic about construction and hope to reach a formal agreement with Canadian and Michigan officials, giving them financial relief by providing numerous jobs on the project.

In June 2012, Governor Rick Snyder and Canadian officials signed an agreement, giving Michigan's Department of Transportation (MDOT) authority to handle land acquisition and be reimbursed by Canada, while Canada is repaid through future tolls. This agreement protects taxpayers from financing any of NITC's costs. Aside from traffic reduction, Snyder believes NITC will provide many other benefits including creating job demand, new global markets for farmers and manufacturers, new investment attraction to Michigan, cost reduction to auto and transportation industry, and turning Michigan into a global transportation center.

The agreement gives the Canadian entity called the Crossing Authority primary responsibility for the design, construction, finance, operation and maintenance of NITC. Canada has begun a search for a CEO and is currently working on utility relocation for the Detroit side.

The most recent reported cost estimate for utility relocation, land acquisition, and I-75 construction was $325 million in 2010 by MDOT. While US officials were present during negotiations of the 2012 agreement, both Norton and Snyder hope that President Barack Obama includes the bridge cost in the 2014 budget. Canadian officials label NITC as essential to the growth of commerce in both nations. Pictured below is a diagram of the affected areas of the NITC project and locations of the new plazas and bridge.

A newly revised standard subcontract will serve as an essential tool for any general contractor working in the federal market. In 2012, this standard subcontract was updated with consideration from all segments of the industry to remain current and relevant in today's federal construction practice. ConsesusDOCS is the company responsible for making the newly revised contract that is now being used by the federal government.

It will make it easier for general contractors and subcontractors to perform federal work by addressing recent changes in federal contracting such as requirements for small business entities and new reporting of executive compensation requirements. These updates will be especially helpful to contractors that don't routinely perform federal government contracts but now seek federal work in a construction market. It is designed to make it easier for contractors to comply with Federal Acquisition Regulations (FAR) by including a special exhibit listing all FAR regulations that apply to the contract. Another significant new revision is one that provides for attorney fees if the contractor withholds payments based on a Miller Act claim made in bad faith.

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As active members of various national, state and local construction associations, state housing councils and specialty trade groups, our team keeps alert to industry trends and opportunities. Our professionals are leaders in the industry and take the steps necessary to ensure our client's future success by identifying and addressing new accounting requirements and regulations. You can depend on us to anticipate major industry issues that might impact your company and help you structure workable solutions.