June 26, 2009

News for contractors and the construction industry

§  States meet deadline for committing half of highway stimulus funds
All states have committed at least half of the highway funds they are entitled to receive under the economic stimulus package, President Barack Obama said Thursday. At this point, a total of 4,800 projects worth $15.8 billion have been approved by the Federal Highway Administration. Meanwhile, the Department of Transportation released a report that indicates areas with lower unemployment rates get more funding than do those with higher rates, but the Associated Press notes the disparity is less than it was in May. CNNMoney.com (6/25) , Google/The Associated Press (6/25)

§  N.Y. transit agency OKs lower payment for Brooklyn Yards developer
The New York Metropolitan Transportation Authority has approved an amended deal with Forest City Ratner, developer of Brooklyn Yards, which will house a new arena for the New Jersey Nets basketball team. The transit agency agreed to an upfront payment of $20 million rather than $100 million and gave the developer 20 years to complete the project that will include 16 buildings. Work on the arena is to begin this year. Forbes/Reuters (6/24)

§  NTSB urges officials to develop bridge inspection program
State and local highway officials should work with the Federal Highway Administration to develop a bridge-design quality-control program and to revise a bridge inspection manual to include guidance on load ratings, according to NTSB officials at the annual International Bridge Conference. Their investigation of the collapse of the I-35 bridge in Minnesota in 2007 revealed that visual inspections did not detect flawed gusset plates. The agency has since designed software to aid gusset-plate inspection. Engineering News-Record (6/24)

§  Other News

·         Stimulus funds will pay for California rail maintenance plant
Engineering News-Record (6/25)

§  Highway funding falls short by $20B, officials say
The sharp decline in revenue from gasoline taxes has led to a severe shortfall in funds needed for road construction projects, officials say. The Highway Trust Fund will run out of money in September, and the U.S. will need up to $20 billion through early 2011 to pay for road projects. Transportation Secretary Ray LaHood has suggested an 18-month extension and thinks eventually private investment and user fees could fund construction. Reuters (6/25)

§  Stimulus funds slow to impact construction industry, economist says
It will take some time for the construction industry to feel results from the $135 billion in stimulus funds designated for construction projects, Associated General Contractors of America Chief Economist Kenneth Simonson said. States have required time to identify projects and to allow contractors to prepare bids, he noted. Meanwhile, Simonson expects most areas of nonresidential construction to continue to decline in 2010. However, he suggested that the stimulus funds could support health care and energy-related construction. Richmond Times-Dispatch (Va.) (6/26)

§  Other News

·         Pennsylvania DOT aims to award all stimulus contracts by September
American City Business Journals/Pittsburgh (6/26)

§  Web site tracks stimulus spending with businesses in mind
A Web site run by Onvia, a Seattle technology company, tracks projects funded by the stimulus package at the state and local levels. Onvia designed the site, recovery.org, for businesses that hope to win stimulus contracts. Information on the site is free, but the majority of the company's data about other government contracts and bidding is available only by subscription. GreenerBuildings (6/24)

§  Labeling program would require building owners to record energy data
A new building-labeling program unveiled by the American Society of Heating, Refrigerating and Air-Conditioning Engineers would require property owners to record their buildings' energy characteristics. The program, which is being tested now, also requires them to include the information on a label, energy certificate and technical documents. ASHRAE officials say the timing of the new program works well because several cities are moving ahead with building energy disclosure laws. CoStar Group (6/25)

§  Column: BIM sparks interest in radio frequency tags
The growth of building information management systems within the construction industry is generating interest in radio frequency identification tags, writes Korky Koroluk. The industry is starting to use RFIDs for tracking tools and equipment. It complements BIM software, which can determine the exact location of materials with an RFID tag, Koroluk writes. Daily Commercial News (6/26)

§  Column: Get ready for E-Verify
The Mintz Levin Immigration Practice Group asserts that E-Verify is here to stay and suggests that employers get ready for September when its use will be required for many companies. The firm believes federal authorities will conduct more I-9, H-1B, and H-2B audits and suggests that firms develop policies about work-site enforcement and audit themselves to make sure they are complying with relevant laws. Mondaq (free registration) (6/24)

§  Procurement provisions in stimulus plan affect contractors
The American Recovery And Reinvestment Act -- aka the stimulus plan -- requires projects funded by the legislation to use construction materials produced in the U.S. Other interim rules included in the legislation require contractors to report how they are using stimulus funds on a quarterly basis. The interim rules, which also provide for whistleblower protections, among other things, were effective March 21, 2009. This piece also notes other regulations that may be of interest. Mondaq (free registration) (6/25)

§  U.S. Army Corps of Engineers Safety & Health Requirements
This manual (EM385-1-1) prescribes safety and health requirements for all Corps of Engineers activities and operations, including Naval Facilities Engineering Command (NAVFAC) construction contracts. This manual will help all contractors working on DoD projects meet all the necessary safety requirements to ensure success on all their current and future federal projects. To purchase copies, visit www.agc.org/bookstore, keyword "EM385."

§  Risk Management Insurance & Bonding
This 162-page handbook introduces you to risk management methodologies, contractual risk transfer and alternative means of financing risk, experience rating, contract surety and much more. 2000. To purchase copies, visit www.agc.org/bookstore, keyword "Risk."