AGC of America recently announced its support of the U.S. District Court's decision concerning the Sierra Club's attempt to introduce litigation to impede road projects in Missouri.

  On January 28, 2000 the U.S. District Court for the District of Columbia agreed with the four Missouri chapters of the Associated General Contractors (AGC) that the Sierra Club cannot use the Clean Air Act to cut off all federal funding for highway construction in the state of Missouri. The Court ruled that the Sierra Club had provided inadequate notice to the federal government. In November 1998, the Sierra Club filed a lawsuit claiming EPA Administrator Carol Browner did not have the authority to allow Missouri to go forward with significant road projects since St. Louis was not in attainment with the ozone standard (Sierra Club v. Browner, No. 98-2733). The Sierra Club asked the court to instruct the federal government to withhold Missouri's federal highway funding until the city reaches conformity--compliance with the ozone standard. The AGC of Missouri, the Heavy Constructors Association of the Greater Kansas City Area, and AGC of St. Louis sought to intervene in the case with additional support of the Kansas City Chapter.

  Only two of the original issues of the lawsuit remain. The court will consider moving the St. Louis Air Quality Control Region from "moderate" nonattainment of ozone to "serious." The court will also consider if the area has met the requirements of the Clean Air Act's conformity regulations. Should the court change St. Louis' air quality designation, the region would be required to present a new plan to meet air quality standards.

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NATIONS INFRASTRUCTURE BENEFITS IN CLINTON'S FINAL BUDGET

On February 7, President Clinton sent the final budget proposal of his presidency to Capitol Hill for Congressional approval. The budget is laden with government spending, however, it does recommend significant increases for federal construction programs over his FY 2000 budget which slashed construction funding by $5 billion. Clinton has restored or increased funding for several AGC priorities including the General Services Administration (GSA) construction programs and federal prison construction. The Federal-Aid Highway Program received a $3 billion increase due to the guaranteed funding provision included in TEA-21. In order to achieve these higher funding levels, Clinton has violated the spending caps established in the Balanced Budget Act of 1997 and added new taxes or increased existing ones such as the Death Tax.

  AGC continues to be a proponent of increased infrastructure investment and, after years of educating the Administration on the infrastructure needs of the country, the President is finally listening. The Clinton budget is a good first step towards fulfilling the needs and demands of the country. A survey last year by the Rebuild America Coalition found that the American people understand that infrastructure investment improves their everyday quality of life, and they want more consideration placed on this issue.

  AGC has been the only construction association that has tracked and fought for the necessary funding for construction programs that are vital to the nation's advancement. AGC is the voice of the entire construction industry representing over 33,000 members and all segments of the construction industry.

  For a more detailed analysis of the Clinton FY 2001 Budget and how it compares to last year's budget, click here, or contact Peter Loughlin at 703-837-5366 or via e-mail at loughlip@agc.org.

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By Ralph Johnson
Sr. Vice President,
Turner Construction Company
& Vice President Elect, Associated
General Contractors Of America

  Recently, the AGC Board of Directors adopted the first comprehensive project delivery policy statement in its 81-year history. At its Midyear Meeting in Chicago, AGC recommended that owners "select the delivery systems that best fit their particular needs, but with due regard for their independent interest in a open and competitive construction industry. Alternative delivery systems are appropriate for the public sector if the selection process is as open, fair, objective, cost-efficient and free of political influence as the competitive bid system."

  In the past, AGC felt that the traditional design-
bid-build process served the public well. However, in response to changing trends in management styles, budgets and technology, many AGC members have been asked by owners--private and public--to provide a range of project delivery options. The association's
policy statement reflects the services its members are
now providing while noting the continuing importance of quality and impartiality in the public construction process.

  AGC members, as service providers, should not be in the position of advocating one delivery system over another for all projects. Instead, as owners increasingly look to contractors for project leadership and preconstruction services, AGC members should advise owners on which system is appropriate for any given project to allow them to make an informed, business-
oriented decision.

  To facilitate overall industry project delivery education, AGC has established key partnerships with owners and architects. AGC's Private Industry Advisory Council (PIAC) consists of contractors and major U.S. owners of construction projects. The American Institute of Architects/AGC Joint Committee is comprised of key AGC and AIA members. Both of these groups meet twice annually to discuss important project delivery issues.

  Because project delivery systems represent a major area of change in the industry, as well as in AGC policy, AGC conducted a Project Delivery Super Conference February 9­11 in Dallas. The conference highlighted the range of systems available and provided valuable lessons from a variety of industry experts.

  Finally, to help owners and contractors adapt to the changing marketplace, AGC has updated its family of Design-Build Contract Documents. These new or revised documents are the first to be developed and endorsed by owners (PIAC) and contractors. The 1999 edition of Design-Build Documents also complement AGC's previously established Construction Management, Program Management, and Subcontract documents and their related publications, including the recently published Construction Contractors' Guide to the Design-Build Process, CM/GC Guidelines for Building Construction in the Public Sector and the AIA/AGC Design-Build Teaming Checklist. Several industry associations have endorsed the Teaming Checklist, including ACEC and DBIA. The advantages of using these industry-accepted standard form documents and other publications are significant and underscore AGC's role as the industry leader in project delivery products and services.

  AGC's project delivery systems policy reflects the association's commitment to educating its members on current industry practices and delivering solution-based construction information.

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News From Washington

EPA Water Proposal Receiving Harsh Ctitisizm

On August 23, 1999 the Environmental Protection Agency (EPA) printed two proposals regarding total maximum daily loads (TMDL) in a watershed. The proposed regulations sparked a firestorm of controversy that extended the comment period from 60 days to five months.

  AGC's comments objected to EPA's regulatory expansion of the Clean Water Act and attempts to undermine the state controlled stormwater program. AGC also stated concern regarding the changes to the stormwater permit process. States objected to the proposal as it undermines the state's control over water rights. The Department of Agriculture believes EPA's proposal intrudes into areas under the department's jurisdiction. The Department of Defense's comments stated, the proposal "may result in a TMDL program that exceeds the scope of that intended by Congress." The House Transportation and Infrastructure Committee is planning two hearings (February 10 and 15) to further examine this proposed rule.

  The first proposal requires states to inventory watersheds for specified pollutants, classify the watersheds as "impaired" or "threatened," and implement a plan to limit the amount of industrial discharge allowed in the watershed. The second proposed rule would amend the construction general permit (CGP) of the storm water program to require offsets discharge on construction sites. Proposed offset requirements in the CGP would be 1¹/2:1 or contractors would be required to assist other sources within a watershed with the implementation of best management practices.

  EPA specifically stated its intention to expand the regulatory scheme by saying, "Since nonpoint sources are not subject to a NPDES (stormwater) permit, the permitting authority may have less ability to ensure that offsets are implemented and maintained."

For more information, contact Loren Sweatt in the Congressional Relations department at 703-837-5360 or via e-mail at sweattl@agc.org.

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LEGISLATION INTRODUCED TO REPEAL INSTALLMENT SALES PROHIBITION

Senator Conrad Burns (R-Mont.) has introduced S.2005, the Installment Tax Correction Act of 2000. The installment sales provision, originally proposed by the Treasury Department and included in Public Law 106-170, prohibits the use of the installment method by accrual basis taxpayers. While the provision appeared to target larger, accrual method businesses when they sold a particular asset or assets, its real effect is to reduce the value of closely held businesses when they are sold in their entirety. Sales of businesses, including construction, have already been adversely affected by the loss of the installment sales option. Rep. Wally Herger (R-Calif.) has introduced similar legislation (no bill number available) in the House. AGC, along with the business community and other legislators, supports these bills.

  If you're interested in additional information on the installment tax, contact Phil Thoden at 703-837-5364 or via e-mail at thodenp@agc.org. *

Business Community Expresses Strong Support
for Death Tax Elimination

At a February 1 meeting, House leaders responded to the business community saying that repeal of the Death Tax remains a top priority. As Republicans went into their annual retreat February 3, Rep. Jennifer Dunn (R-Wash.), chief sponsor of a Death Tax repeal bill with 231 cosponsors, presented House Speaker Dennis Hastert with a letter signed by 60 Congressional members asking that Death Tax be at the top of the GOP's legislative agenda.

  Legislative strategy for tax cuts, however, has yet to gel. One strategy of passing individual tax bills on specific topics (death tax, marriage tax, etc.) hit a roadblock earlier when Senate Democrats announced their opposition to all stand-alone tax bills.

AGC will continue to promote tax cuts during this Congressional session.

FHWA FILLS OPEN POSITION

Effective January 7, U.S. Transportation Secretary Rodney Slater appointed Walter Sutton, Jr. as Acting Deputy Federal Highway Administrator. Sutton previously served as the Associate Administrator for Policy at FHWA and as an environmental attorney for the Fina Oil and Chemical Company.

EARTH DAY 2000 - CALLING ALL CONTRACTORS AGC of America requests your assistance in assembling a "Construction Industry Environmental Report Card." We are asking contractors to submit information on successful projects in your state including special technologies developed, cleanup procedures or mitigation used to improve the environment. AGC will compile your photos, stories and projects in a media-friendly kit for distribution on April 22, Earth Day 2000. Please submit your contribution by Friday, March 24, 2000 to Loren Sweatt at AGC of America. For additional information or to submit your environmental project, contact Loren Sweatt at 703-837-5360, sweattl@agc.org or via fax at 703-837-5407.

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ASSOCIATIONS PARTNER AT M-U DIVISION WINTER JOINT COMMITTEE MEETINGS

During the Municipal-Utilities Winter Joint Committee meetings February 1­4, AGC, along with the American Consulting Engineers Council and the American Public Works Association, finalized plans for a signing ceremony for a statement of understanding on multiple delivery systems between the three associations. The signing will occur at the M-U Division meeting during AGC's Annual Convention on Thursday, March 9, 2000.

  Also during the winter meetings, the M-U Division hosted Steve Allbee from the Environmental Protection Agency who presented the "EPA State Water Quality Program Management Gap Analysis" for AGC members and representatives of four other associations that are stakeholders in the water/wastewater industry. The Gap Analysis explains both America's long and short term needs in public funding of water/wastewater construction and will be the basis for upcoming federal funding proposals. All associations represented participated in a roundtable discussion on traditional and innovative funding methods for infrastructure construction. The associations represented included AGC, American Consulting Engineers Council, American Public Works Association, American Water Works Association and the Association of Metropolitan Water Agencies. This was the first-ever meeting involving all of these groups to discuss coalition work on funding initiatives.

For additional information on how to partner with engineers or public works officials at the chapter level, contact Stu Megaw at 703-837-5321 or at megaws@agc.org.

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REBUILD AMERICA and AGC CONTINUE TO FIGHT FOR INFRASTRUCTURE INVESTMENT

The Rebuild America Coalition, founded in part by the Associated General Contractors of America in 1987, continues its fight to reverse the decline of infrastructure investment by promoting and mobilizing public and private partnerships at national and local levels.

  The coalition recognizes the serious state of the nation's infrastructure and the impact it has on economic competitiveness and quality of life issues. With the recent announcement of a new chairman, Mayor Carleton S. Finkbeiner of Toledo, Ohio, the coalition is looking to him to lead Rebuild America in making infrastructure issues a priority in 2000.

  AGC maintains its support of the group as a sponsor and Stephen E. Sandherr, AGC of America executive vice president & CEO, continues to serve as chairman of the Executive Committee.

For more information on the Rebuild America Coalition, visit their website at http://www.rebuildamerica.org/.

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PARTNERING WEBSITE INTRODUCED

AGC, in conjunction with the U.S. Army Corps of Engineers, recently launched a Partnering Best Practices Website aimed at renewing interest in construction partnering and collaborative thinking. Visit http://www.partneringbestpractice.org/ to review actual scenarios that contractors, owners, and other stakeholders have recently encountered. You even have the opportunity to submit your own partnering experiences to share with others through this online community.

For additional information on the Partnering Best Practices Website, contact Jim Krause at 703-837-5325 or via e-mail at krausej@agc.org.

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AGC Comments on Proposed FAR Amendments

The Federal Acquisition Regulation (FAR) Secretariat proposes to amend the FAR to include Department of Labor (DOL) guidance on the applicability of current Davis-Bacon wage rates to the exercise of contract options. The DOL guidance defines the type of contract option that requires a current prevailing wage determination.

  AGC's comments point out that the proposed FAR amendments do not use the same definition of a qualifying option as the DOL, and omit the DOL's finding that a contract option that does require a current wage determination becomes a new contract. AGC urges the FAR Secretariat to incorporate the complete DOL guidance and advises that contractors should have the opportunity to revisit the price of performance if an option constitutes a new contract.

See Davis-Bacon Bulletin No.2-00 (2/1/00) for a copy of the proposal and AGC's comments. Or contact Bill Isokait at 703-837-5343 or isokaitb@agc.org for additional information. 

Paid Family Leave Proposal Jeopardizes Unemployment Compensation System

On December 3, 1999 the Department of Labor (DOL) published a proposal to permit states to use unemployment compensation insurance funds to pay workers for any parental leave they may take after the birth or adoption of a child.

Under federal law, individuals must be unemployed but still "able and available" for work to be eligible for unemployment compensation. The DOL proposes to eliminate this requirement for individuals who are employed but wish to take a leave of absence from work due to the birth or adoption of a child.

AGC's comments point out that the proposal jeopardizes the financial solvency of the unemployment compensation insurance system, could lead to substantial increases in employer unemployment insurance taxes and undermines the historic purpose of the unemployment compensation system.

See Human Resource Practices Bulletin No. 8-99 (12/21/99) for a detailed overview and a copy of the proposal, and Human Resource Practices Bulletin No. 1-00 (2/4/00) for a copy of AGC's comments. Or contact Bill Isokait at 703-837-5343 or isokaitb@agc.org for additional information.

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OSHA Annual Posting Requirement

The Occupational Safety & Health Administration (OSHA) requires that companies with 11 or more employees post the total number of job-related injuries and illnesses that occurred during the previous year. To meet the requirement, this information must be posted from February 1 to March 1 where usual and customary employee notices are posted.

  Contractors are required to use the last page of their OSHA 200 Log and Summary of Occupational Injuries and Illnesses as the standard form for posting. If there are no injuries or illnesses during the previous year, zeros must be entered on the total lines and then posted. The person responsible for the annual summary totals shall certify that the totals are true and complete by signing the bottom of the form.

For a copy of the OSHA 200 Log and Summary or for additional information, contact Carl Heinlein at 703-837-5332 or via e-mail at heinleic@agc.org.

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Newly Elected Directors and National Officers Ratified

The Teller Committee met at the AGC offices in Alexandria, VA on February 1, 2000.  Cal Coblentz (L), Maryland Chapter Executive, Ken Wingate of North Builders, Inc. in Baltimore, MD., and Linda Mock of AGC of America Work on te Ratification of Elected Directors and National Officers. (Not Pictured: Jay Oliphant of the William P. Lipscomb Co. in Arlington, VA.)

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LOUISIANA AGC Reaches Out to Engineering Community

Last year, Louisiana AGC members and staff frequently met with the Louisiana Engineering Society and the Consulting Engineers Council to address several industry concerns. Among the topics discussed during these meetings were the identification of underground utilities and the cooperative use of the Louisiana AGC Internet Plan Room (IPR). The results of these meetings included the following.

• The three groups drafted a standard for identifying and locating underground facilities that was distributed to contractors and engineers.
  
• Throughout the course of the year more than 50 engineering firms attended IPR meetings.

  Louisiana AGC expects to continue their successful partnering efforts with these groups.

  For more information on how your chapter can reach out and contact engineers and public works officials in your area, contact Stu Megaw at AGC, 703-837-5321 or megaws@agc.org.

Nation's Infrastructure Benefits in Clinton's Final Budget

AGC Issues Policy Statement on Project Delivery, Helps Owners and Contractors Adapt to a Changing Market.

News From Washington

Understanding The Process and Mastering the Skills of Collective Bargaining

'Rebuild America' and AGC Continue to Fight for Infrastructure Investment

Partnering Website Intruduced

Labor & Human Resources Issues

Chapter Corner

TIME IS RUNNING OUT! Register for the 2000 Convention / CONSTRUCTOR Exposition