Schinnerer's RM Blog - agc tag

AGC’s Plea for Infrastructure Investment

Fri, 16 Sep 2011 12:54:00 GMT

Back in May, AGC released a new report on the need for the federal government to invest in much-needed infrastructure projects. According to AGC’s report:

The report notes that the federal government has a Constitutional responsibility to invest in transportation facilities that support interstate commerce. It adds that infrastructure investments are crucial to national economic security and protecting businesses and citizens from the hidden tax they would bare should our infrastructure be allowed to fail. And the report makes clear that investing in the maintenance of infrastructure is far cheaper than paying to fix those facilities once they break.

AGC stated that the federal government needs to allow states and local governments greater flexibility in determining those projects most beneficial to their constituents. According to AGC, this would allow states to rebuild their infrastructure systems in critical need of upgrade and create jobs in areas hit hard by the recession. AGC also called for the government to make it easier for private investment to help bridge the gap with budget shortfalls. AGC made available their entire infrastructure development plan, an accompanying press release, and a fact sheet about the plan.

A few days ago, AGC responded to President Obama’s job proposal plan. Stephen E. Sandherr, CEO of AGC, had this to say in response to the President’s speech:

Should Congress fail to enact the desperately needed infrastructure investments the President proposes, too many construction workers will remain unemployed, the private sector will suffer, and taxpayers will end up paying more, later, for infrastructure. Infrastructure projects don’t just create construction jobs. New construction activity boosts demand for steel, concrete, construction equipment and countless other services and supplies.

AGC is not the first design and construction association to be critical of the nation’s aging infrastructure. ASCE issues an annual infrastructure report card and pleads for investment in projects to help prevent critical system failures.

Transportation Bill Expiring

Tue, 23 Nov 2010 14:44:51 GMT

The latest extension of the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users (SAFETEA-LU), the funding and authorization bill that has governed the U.S. federal transportation spending since 2005, will expire at the end of this year. The problem is, there is currently no reauthorization or successor to the bill. This has the Associated General Contractors of America (AGC) concerned. The AGC wants action to be taken.

Revisions Coming from ConsensusDOCS

Thu, 18 Nov 2010 19:37:00 GMT

The ConsensusDOCS coalition is releasing modified contract forms in January 2011 to respond to emerging trends and practices. Among the revised standard forms is the ConsensusDOCS 300, the Standard Tri-Party Agreement for Integrated Project Delivery, and the new versions of the standard owner agreements with design professionals. ConsensusDOCS is now three years old and has grown to a coalition of 29 construction industry associations. Stay tuned for more information on these newly revised documents in January following their release.

Treasury Department Release Infrastructure Investment Study

Fri, 29 Oct 2010 16:26:00 GMT

An October 11^th report titled, “An Economic Analysis of Infrastructure Investment,” which was prepared by the Department of the Treasury with the Council of Economic Advisers, evaluates the economic impact of the Obama administration’s infrastructure plan. The plan calls for investment of $50 billion in a six-year reauthorization of the surface transportation program, creation of a National Infrastructure Bank to leverage private capital for improvement projects, and rigorous analysis of proposed projects to identify those that yield the greatest returns to society and deliver long-term economic benefits.

The report found these four key reasons for an increased infrastructure investment at the federal level:

Well-designed infrastructure investments have long-term economic benefits;
The middle class will benefit disproportionately from such investment;
High level of underutilized resources that can be used to improve and expand U.S. infrastructure; and
Strong demand by the public and private businesses for additional transportation infrastructure investments.

Stephen E. Sandherr, the chief executive officer of the Associated General Contractors of America, responded to the release of the report with this statement:

“That is why the Administration’s newfound focus on making significant, long-term investments in rebuilding and expanding transportation infrastructure will provide much-needed help to hard-hit businesses and workers alike. With construction prices down significantly from just a few years ago, now is the right time to make a long-term commitment to the very infrastructure that keeps our businesses competitive, our drivers safe and our communities vibrant.”

It probably should be noted that the political action committee for AGC contributed 77% of its funds this election cycle to Republican candidates. While the individual candidates supported by AGC are selected because they are judged to support AGC’s “values and concerns and will fight our efforts to protect the construction industry,” according to AGC PAC information, it is anticipated by most political commentators that a Republican-led Congress will not continue stimulus spending, address the depletion of the highway trust fund by increasing fuel taxes or creating alternative taxing, or promote long-term infrastructure improvements through research and pilot projects.

New IPD Guide Published

Wed, 11 Aug 2010 14:15:00 GMT

In a joint effort, several leading construction industry organizations have published a guide called Integrated Project Delivery For Public and Private Owners. Contributors include the Construction Owners Association of America (COAA), the National Association of State Facilities Administrators (NASFA), the APPA (formerly the Association of Physical Plant Administrators), the Association of Higher Education Facilities Officers, the Associated General Contractors of America (AGC), and the American Institute of Architects (AIA).

The publication outlines the basic principles of integrated project delivery (IPD), and includes useful tips and advice for project owners considering this approach to construction. It divides IPD strategies into two areas of usage, “philosophy” and “delivery method,” and three levels of collaboration, “typical,” “enhanced,” and “required,” explaining the implications of each category. The paper also clarifies the relationships between IPD and three other trends in the industry: lean construction, building information modeling (BIM), and sustainability. Furthermore, risk and liability issues are discussed for many topics.

Notable sections of the paper include “First Steps” for implementing the strategy and “Recommendations for All Owners (Not Just Public).”

Copies are available from the following websites: