A third quarter survey released by the Real Estate Roundtable of 120 commercial real estate executives indicates that attitudes toward the current market conditions still remain quite bleak.  The president and CEO of the Roundtable Jeffrey DeBoer asserts that "the vast challenges facing commercial real estate today are far from over.  Continued comprehensive policy action is called for to bring liquidity back to the market and avoid a cascade of negative repercussions for the economy."Access the August 5 press release "Commercial Real Estate Woes far from Over, Survey Says" and survey results from the third Quarter Sentiment Survey are available at The Real Estate Roundtable.

AGC announced the results of a new analysis that found construction safety incidents dropped 38 percent over the last ten years and the construction fatality rate declined 47 percent since 1998, the year the federal government switched to a safety oversight approach known as "collaborative safety."During a news conference last month co-hosted with its Shreveport Chapter, AGC released the findings and called for continued use of the collaborative safety approach.  AGC also announced a new federally-supported safety program for Shreveport-area construction projects.  The new collaborative safety program commits the U.S. Occupational Safety & Health Administration and local contractors to provide additional training, data analysis and support needed to improve safety for the next three years.The news was widely covered by the media, including the Shreveport Times, Phoenix Business Journal and Nashville Business Journal.  You can also access the AGC press release here.

On September 17, 2009, the House passed H.R. 3221, the Student Aid and Fiscal Responsibility Act of 2009, which authorizes more than $4 billion for elementary and secondary school facility projects over the next two fiscal years, and ensures that school districts will receive funds for school modernization, renovation and repairs that create healthier, safer and more energy-efficient teaching and learning climates. The bill allocates the same percentage of funds to school districts that they receive under Part A of Title I of the Elementary and Secondary Education Act, except that it guarantees each such district a minimum of $5,000. The bill also provides grants to states to help community colleges finance new construction, modernization, renovation and repair projects.While AGC supports the overall bill, it includes the same Buy American language as was included in the American Recovery and Reinvestment Act of 2009 (the Recovery Act).AGC has long-advocated for additional investment in school construction, as there is substantial opportunity for investment in upgrading and improving the unmet need for school construction and renovation, which is estimated to be $3.7 billion. The average age of a public school building is estimated to be over 40 years old, the same age that schools have been documented to deteriorate.The bill now moves to the Senate for consideration. AGC will urge Senators to support the bill without the onerous Buy American restrictions. For more information, contact Jim Young at (202) 547-0133 or youngj@agc.org.

Forbes reports that "financiers are sweating a coming wave of mortgage defaults tied to office and apartment buildings. Unfortunately for them, too big to fail doesn't apply to the $6.5 trillion U.S. commercial real estate market."  Read the full story here.

A rule requiring federal contractors and subcontractors to use the Department of Homeland Security U.S. Citizenship and Immigration Services' E-Verify system to verify their employees' authorization to work in the U.S. is now in effect.  The rule applies to federal solicitations and contract awards government-wide beginning September 8.The FAR Council issued the final rule in November 2008.  In response to a legal challenge to the rule and in order to give the new administration time to fully review the matter, the government agreed to suspend the rule on three separate occasions, but, in a July 8 statement, DHS Secretary Janet Napolitano announced that DHS will "push ahead with full implementation" of the rule without further delay.The rule requires the insertion of a new clause in certain federal contracts and subcontracts.  Prime contracts below the simplified acquisition threshold of $100,000 and those with performance terms of less than 120 days are excluded.  The clause requires the contractor to use E-Verify to confirm employment eligibility of all new employees hired during the contract term and all current employees assigned to work on a federal job within the U.S.  It also allows, but does not require, the federal contractor to use E-Verify to confirm eligibility of all employees, regardless of whether they are assigned to work on a federal job.  Currently, use of E-Verify to confirm anyone other than a new hire (including applicants and current employees) is prohibited. The rule applies only to employers with direct contracts with the federal government and, via a flow-down requirement, to their subcontractors.  It does not apply to employers working only on federally funded projects or on other projects not under contract with a federal agency.Although the litigation continues, contractors are advised to carefully review all new solicitations and contracts for federal projects and comply with any E-Verify requirements at this time.  AGC will continue to monitor all related litigation and legislation and will report on significant developments.Click here for the E-Verify Supplemental Guidance for Federal Contractors issued by USCIS on September 8.  Click here for DHS's list of Frequently Asked Questions (FAQ's) for Federal Contractors and E-Verify.  Click here for more information about critical components of the rule.  Click here for information about free webinars on the E-Verify program.Further guidance on immigration compliance is available in an MP3 download of a live educational session held at AGC's Annual HR Professionals Conference in June 2008.  An immigration law update will also be provided at AGC's next HR Professionals Conference, which will take place October 27-29, in Atlanta, Ga. Click here for conference details and registration.

Recognize the advantages and disadvantages of Integrated Project Delivery (IPD) and identify best practices at AGC's latest IPD webinar.The webinar will include a discussion and explanation of IPD, the advantages and disadvantages of IPD from the Owner perspective, IPD best practices and why Owners choose multi-party agreements.All registrants will receive a free sample of the ConsensusDOCS 300 Tri-Party Agreement and access to the "IPD: Lessons from the Trenches" webinar recording (a retail value of $179.00). This program offers .2 IACET CEUs, and 1.5 AIA LUs. Register today at www.agc.org/ipdwebinar.

AGC has compiled all of its project delivery resources into one document to provide an easy, "one stop shop" reference for its members.  From contract documents and bookstore offerings to webinar and web resources...you can take a look at AGC's entire project delivery library by clicking here or going to www.agc.org/projectdelivery.  You will see that each resource has an Internet link bringing you directly to that particular product.For more about project delivery, please visit www.agc.org/projectdelivery.

The AGC Project Delivery Committee released Qualifications Based Selection of Contractors on August 24.  Qualifications Based Selection (QBS) is a procurement method in which the final criteria for selection are qualifications and demonstrated competence without consideration of price/cost until contract negotiation.QBS of contractors is emerging as one response to the demands of the current marketplace, wherein owners are increasingly seeking collaborative early contractor involvement.  This white paper explores the trend of QBS of contractors, discusses QBS benefits and challenges, considers how QBS works with various project delivery systems and offers owner suggestions for QBS best practices.   Qualifications Based Selection of Contractors was developed by the QBS Working Group of the AGC Project Delivery Committee and can be found at www.agc.org/projectdelivery, or by clicking here.

Join leaders from top building construction firms, owners, specialty contractors and service and supply companies at the next AGC Building Contractors Conference at the Caribe Hilton in downtown San Juan, Puerto Rico January 20-22, 2010.Building construction professionals, owners, specialty contractors, service and supply firms and anyone who wishes to contribute to the industry and benefit from valuable information and best practices cannot afford to miss this conference.  The practical guidance and networking opportunities found at the Building Contractors Conference are crucial and necessary in these tough times.Early-Bird registration is now open, and registration discounts are available to first-time attendees as well as multiple attendees from the same firm.  For more information on the conference and to register, please visit www.agc.org/bcc.Interested in sponsoring the AGC Building Contractors Conference and showcasing your firm before owners and leaders of this market? See the "Sponsors" tab here for available sponsorship opportunities, or contact Mike Stark at starkm@agc.org for more information.

A September 9 report from the latest Beige Book, a summary of informal soundings of business conditions, "indicate that economic activity continued to stabilize in July and August."  The districts are referred to by the name of their headquarters city. Relative to the last report, Dallas indicated that economic activity had firmed, while Boston, Cleveland, Philadelphia, Richmond, and San Francisco mentioned signs of improvement. Atlanta, Chicago, Kansas City, Minneapolis, and New York generally described economic activity as stable or showing signs of stabilization; St. Louis remarked that the pace of decline appeared to be moderating. Most Districts noted that the outlook for economic activity among their business contacts remained cautiously positive.The Beige Book was also a bit more upbeat about homebuilding but not about conditions in nonresidential construction and real estate. Residential construction remained at low levels overall, although Chicago and Dallas reported a small increase in activity. Reports on commercial real estate markets indicated that demand for space remained weak and that construction continued to decline in all Districts. Atlanta, Philadelphia, Richmond, and San Francisco reported that vacancy rates increased, while rates held steady in the Boston and Kansas City Districts and were mixed in New York. Boston, Dallas, Kansas City, Philadelphia, and Richmond commented that the demand for space remained weak. Commercial rents declined according to Boston, Chicago, New York, Philadelphia, and Richmond. Rent concessions were reported in the Richmond and San Francisco markets, and Richmond noted that some landlords had postponed property improvements in an effort to conserve cash. Construction remained at very low levels, with modest improvements noted in public construction in the Chicago, Cleveland, and Minneapolis Districts.The reports are consistent with what nonresidential contractors have been telling AGC: outside of stimulus money for highway construction and a few other niches, conditions have not brightened at all.To report what you are encountering, email simonsonk@agc.org. For more information on AGC Chief Economist Ken Simonson's weekly economic newsletter, visit http://www.agc.org/cs/news_media/newsletters.