ConsensusDOCS are the only standard contracts that give Contractors the contractual right to project financing information throughout the life of the project - not just at the beginning.The ConsensusDOCS 200, Standard Agreement and General Conditions Between Owner and Contractor, expressly states that "[p]rior to commencement of the Work and thereafter at the written request of the Contractor, the Owner shall provide the Contractor with evidence of Project financing.  Evidence of such financing shall be a condition precedent to the Contractor's commencing or continuing the Work.  The Contractor shall be notified prior to any material change in Project financing."In sharp contrast, the American Institute of Architects' A201-2007, General Conditions of the Contract for Construction, restrict the Contractor's access to owner financial information after work commences and expressly states that a Contractor may request such information only "if (1) the Owner fails to make payments to the Contractor as the Contract Documents require; (2) a change in the Work materially changes the Contract Sum; or (3) the Contractor identifies in writing a reasonable concern regarding the Owner's ability to make payment when due."  These restrictive conditions are subject to interpretation and can lead to expensive and unnecessary disputes.The ConsensusDOCS 290, Guidelines for Obtaining Owner Financial Information, and the related Financial Questionnaire 290.1, provide an easy and direct way for contractors to quickly determine the financial viability of projects.  The 290 expressly highlights, "[i]n any contractual venture, each Party has a legitimate interest and responsibility in ascertaining whether the other Party is fully capable of performing all of its contractual obligations...The proven ability to pay is just as important as the proven ability to perform." Contractors value ConsensusDOCS-based projects because they clearly possess the contractual right to request and obtain financial viability information.  The 290 provides a reasonable approach to requesting such sensitive but critical financial information and is endorsed by national owner groups including COAA, CURT and NASFA.For a free excerpted sample, please visit www.AGC.org/Bookstore.  AGC members receive a 20% discount on all ConsensusDOCS products.

AGC recently submitted comments to the Internal Revenue Service (IRS) in response to the agency's December 5, 2008 notice of proposed rulemaking to implement the 3 percent withholding law enacted in 2006.  Effective January 1, 2012, federal, state and local governments with annual expenditures of $100 million or more are required to withhold 3 percent from payments for goods and services, including payments made under government contracts with construction companies.  The law was intended to reduce the so-called "tax gap" and tax evasion.  AGC has strongly opposed this legislation since it was introduced.IRS' proposed rule clarifies that payments for the construction of a building or other public works projects are subject to 3 percent withholding, which could adversely affect a contractor's cash flow.  To view a copy of AGC's letter, and for additional information on the proposed rule and AGC's position, please click here.Congress recently enacted a one-year delay in the effective date of the law (i.e., from 2011 to 2012) as part of H.R. 1, the American Recovery and Reinvestment Act.  AGC has made full repeal of the onerous 3 percent withholding tax a top priority of the 111th Congress and will continue efforts to urge Congress to enact such legislation.On January 7, Representative Kendrick Meek (D-FL) introduced H.R. 275, a bill to repeal the 3 percent withholding law.  On January 21, Senator Arlen Specter (R-PA) introduced a Senate version, S. 292.  AGC is working with a broad coalition of stakeholders to enact the legislation.

AGC of America is a proud cosponsor of the 4th Annual Airport Project Delivery Systems Summit on June 3-4, 2009 in Savannah, Georgia.  If you are involved in airport construction, you won’t want to miss this important event, presented by AGC of America, Airports Council International-NA, and the Airport Consultants Council.  For more information about the Summit and to register, please click here.

Last week, the "so-called" Employee Free Choice Act (EFCA) was introduced in both the House and the Senate.  While H.R. 1409 had 223 cosponsors and S. 560 had 40 cosponsors, the total number of cosponsors was less than supporters had hoped, indicating that businesses and other groups in opposition are making a strong case to leaders on Capitol Hill.  AGC released a statement March 10 in response to the introduction of card check and announced that more than 10,000 AGC members had sent messages to Congress in opposition to the legislation.  That number has grown to over 14,000 in just three days.This bill would deprive millions of employees the right to a private vote when deciding whether or not to unionize.  It would hurt construction workers and make it very difficult for small construction companies to grow, hire or succeed.  This legislation would also lead to federally mandated employment terms for construction firms.Though most of the focus of this bill has been the impact on open shop employers and their employees, EFCA is also likely to have a negative effect on union contractors and their 8(f) "pre-hire agreements." Visit www.agc.org/efca to learn more about the impact of EFCA on union contractors.AGC strongly opposes this legislation.  Please continue to use AGC's Legislative Action Center to write and let your Members of Congress know your opposition to EFCA.  The Senators in Colorado, Louisiana, Arkansas, Virginia, Nebraska and North Carolina are considered key in stopping EFCA from moving forward, but all Members of Congress need to hear from you.  It is important to stress to your Senators that it is not enough just to oppose the bill, but to oppose any procedural votes such as cloture votes on EFCA.

At last week's AGC Annual Convention, Michael Kenig, Vice Chair of Holder Construction in Atlanta, GA became chairman of the AGC Building Division.  Dirk Elsperman of Tarlton Corp. in St. Louis, MO completed his term at the Convention.  Mike is a member of the AGC Executive Board, recently served as Division Vice Chairman, previously led the Project Delivery Committee, and has been involved in numerous AGC and industry initiatives throughout his career.  Paul Hoffman, President of Hoffman, LLC in Appleton, WI was elected as Division Vice Chair.Other AGC Building Division leadership changes include:Rick Andritsch, VJS Construction Services, Pewaukee, WI is the new chair of the Construction Marketing Committee.  Terry Wooding, Petra Construction Corp., North Haven, CT completed his term.Steve Kimball, Kimball Construction Company, Inc., Baltimore, MD is the new chair of the Industry Liaison Committee.  Chuck Greco, Linbeck Group LLC, Houston, TX completed his term. Doug Maibach, Barton Malow Co., Southfield, MI is the new chair of the Project Delivery Committee.  Mike Kenig, Holder Construction, Atlanta, GA completed his term.A special thank you to Dirk Elsperman, Terry Wooding, Chuck Greco and Mike Kenig for their service to AGC.New officers of AGC of America include the following: J. Doug Pruitt, chairman and chief executive officer of Sundt Construction Inc., Tempe, Ariz., will serve as president; Ted Aadland, president of Aadland Evans Constructors, Inc., Portland, Ore., will serve as senior vice president; Kristine Young, CEO of Miller the Driller, Des Moines, Iowa, will serve as vice president; and Samuel Hutchinson, president of Interface Construction Corp., St. Louis, Mo., will serve as treasurer.

Increasing interest in opportunities in public works projects, coupled with a massive increase in Federal construction projects "ready to go" thanks to the economic stimulus package, will be a major focus of the 2009 AGC Annual Convention in San Diego.The annual session of the Federal and Heavy Construction Division will be held March 6 and focus on acquainting all those interested in pursuing contracting opportunities with the Federal government, particularly in light of the current state of the private construction market and the implementation of the American Recovery and Reinvestment Act (Economic Stimulus Package). This special session will be Moderated by Tom Kelleher of Smith, Currie & Hancock and feature a panel of speakers covering the construction markets, bonding industry and legal experts to help navigate the complexities of the Federal market.AGC is also proud to host a special day-long Federal Forum, which will take place March 5 from 9:00am - 3:15pm and conclude with a Federal Forum Reception that will take place from 5:00pm-6:00pm. Other meetings of interest to contractors interested in the Federal market include a joint session of the Corps of Engineers and Marine Contractors Committees, the Naval Facilities Engineering Command (NAVFAC) Committee, and a special session on the $10 Billion Military Construction Program underway in Guam. All three session will be held throughout the day on March 4.For more information contact Marco Giamberardino at giamberm@agc.org.

The AGC 90th Annual Convention and Constructor Expo has something for everyone.

AGC Webinar - February 26, 2009 from 2:00 to 3:30 PM (ET). 

On February 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 (HR 1), and President Obama signed the bill at a ceremony in Denver on February 17.

IPD: Lessons from the Trenches - AGC Webinar - February 26, 2009 from 2:00 to 3:30 PM (ET).