AGC of NH News
NOTE: For those not familiar with AGC of NH, this section of news is a supplement to our biweekly newsletter and used for attachments that could not be included with that publication.
Important Reminders
Flagging Requirements
The new flagging requirement becomes effective on all new projects beginning October 1st, 2008, which is the beginning of federal fiscal year 2009. The requirement states that upon request by the contract administrator, the contractor or subcontractor shall provide verification of training within 48 hours.
AGC Update Available by E-Mail
For those of you who may not like papers cluttering your desk, AGC is helping to clear the clutter away! The AGC Update is now available by e-mail, to those of you who like the convenience of digital mail! AGC promises to bring you the same quality news and information, just in an easier one-click format. If you are currently receiving our newsletter and would like to begin receiving a digital copy of the AGC Update, simply email your request. Please include your company name and address as membership information is sent by mail.
October 2011
Unemployment Compensation for Seasonal Employes Update
Legislation has been filed for the 2012 Legislative Session that will alter the work search requirements for seasonal workers. AGC of NH’s Seasonal Worker Committee has been working closely with the Department of Employment Security’s Unemployment Advisory Council in regards to this issue. The proposed legislation will amend the definition of “suitable work” for seasonal workers. Seasonal workers without a return to work date listed on their unemployment claim will need to find work in the off season that is within their skill set (i.e. a forklift operator on a jobsite works temporarily as a forklift operator at a manufacturing facility). AGC of NH will support this legislation if it is not left up to interpretation that would result in discrimination against the construction industry.
AGC of NH formed its Seasonal Worker Committee this past summer in response to the Department’s proposition that changes need to be made to the work search requirement for seasonal workers. Currently, seasonal workers are allowed to claim unemployment for sixteen weeks without performing the required work search if they submit a return to work date with their claim. According to the Department, as a result of the economic downturn more seasonal workers were laid off for an extended period of time, leading to a bigger draw on the State’s Unemployment Trust Fund. The Department developed a number of proposals that included removing the sixteen week exception rule, increasing the taxable rate, requiring employers to reimburse for the sixteen or more weeks, and requiring seasonal workers to register with temporary agencies. Corresponding with their options, the Department produced a report that illustrates the impact of seasonal workers.
The Seasonal Worker Committee was concerned with the report, and a number of the options, as they unfairly targeted the construction agency. The report arbitrarily summarized data by claims lasting shorter or longer than 12 weeks, and made a number of blanket statements about construction claims. Regarding the options, the Committee believed that removing the sixteen week exception was the fairest option as it made seasonal workers the same as non-seasonal workers receiving unemployment compensation. However, the business community represented on the Advisory Council does not want to remove the exception, as it is a waste of their resources to interview seasonal workers who plan to return to work when their previous job is available. It was also mentioned that increasing the taxable rate or other options that result in additional payments from businesses would not pass the Legislature in today’s economy.
AGC of NH is continuing to play an active role in this issue, and will update members with more information when it becomes available. The Department’s report is available here: DES Seasonal Worker Report. AGC of NH encourages members to read this report, as it gives an in-depth look at what the Department is thinking in regards to seasonal workers and employers.
House Committee Passes Repeal of 3% Withholding
The U.S. House Ways and Means Committee has passed legislation to repeal 3% withholding on federal, state, and local contracts. The full House is scheduled to vote by the end of October. NH Representative Charles Bass has co-sponsored the legislation to repeal 3% withholding. AGC of NH wrote to Congressman Bass asking for his support on the legislation, which he gave shortly after receiving the letter. He explained his reasoning in a response letter. To view the letter click here: Congressman Bass 3% Withholding Response.
NLRB Delays Posting Requirement
The National Labor Relations Board has delayed their posting requirement of an Employees Rights Under the National Labor Relations Act notice. Companies will be required to post the notice as of January 31, 2012. Terry Shumaker of member company Bernstein Shur spoke to AGC of NH's Human Resources Committee about the posting requirement and related act. He, along with fellow Bernstein Shur employee Lori Dwyer wrote an article in the New Hampshire Business Review about the act and its implications. Here is the article: Bernstein Shur Article on NLRA.
AGC of America Questions DOL Use of PLA on Job Corps Project
AGC of America has addressed the Department of Labor's (DOL) decision to include a project labor agreement (PLA) in a letter dated October 7. Specifically the letter questions the Department's decision to include a PLA after the project was cancelled in 2009 because of a government-mandated PLA. The letter asks how the Department determined using a PLA would be in the best interest of the project, and what experience the Department has in negotiating PLAs. A more in-depth article on this issue can be found in the October 17th issue of the AGC of NH Newsletter.
Click here to see a copy of the letter: AGC PLA Letter to DOL - Manchester Job Corps Center
August 2011
State Budget Includes Extensive Changes Made to Shoreland Protection Act
Senate Bill 154, which originally made changes to the comprehensive shoreland protection was vetoed by the Governor after an amendment to the bill was passed by the Legislature to repeal New Hampshire’s regional greenhouse gas initiative cap and trade program. Legislators ultimately decided to include the changes to the comprehensive shoreland protection in the final version of the budget. That language can be seen here:
Shoreland Language Passed HB 2-2011
July 2011
Booklet Highlights Seasonal Workers Unemployment Claims
During a recent meeting of the Unemployment Trust Fund Advisory Council, a report on seasonal workers by the Economic and Labor Market Information Bureau was released. The report was based on claimants who provided a return to work date when they filed their initial claim. The report was used during a discussion regarding potential changes to the seasonal worker 16 week work search exemption rule. For more on this issue, please see past issues of the AGC of NH Newsletter.
Seasonal Workers Report
AGC of NH Works For Commercial Exemption in Lead Paint Rule
The State of New Hampshire is looking to take over the Environmental Protection Agency’s (EPA) lead paint renovation rule. During the 2011 session, House Bill 480 was introduced and eventually retained by the House Executive Departments and Administration Committee. The bill establishes a state renovation, repair, and painting (RRP) rule program to implement the EPA’s RRP rule program. The bill was requested by the Department of Health and Human Services. If passed, the law would require firms or individuals working in pre-1978 homes and child occupied facilities to become “certified renovators.” In order to become a “certified renovator,” individuals must complete an accredited renovation course.
AGC of NH has been closely following this bill, and most recently attended a committee hearing on the retained bill. AGC of NH has emphasized the need for a commercial exemption in the bill, and has received positive response. However, EPA is currently working on an expansion of their federal rule to include commercial properties, which may impact the New Hampshire law in the future. This concern is exacerbated by the fact that House Bill 480 contains very vague language as to the exact requirements, fines, and more. Furthermore, states that implement the Federal rule as law must do so with a law that is at least as restrictive as the federal program. This language would allow the Department of Health and Human Services to develop a program that is more stringent than the federal one. This poses a significant problem, as the current federal rule has already prompted several construction firms to decline work on pre-1978 buildings.
AGC of NH has also taken notice of the fiscal note of the bill which states that 4,329 firms and 4,825 individuals will need to be certified if the bill passes. The fiscal note also states that four employees will need to be hired by the Department to implement the program. The Home Builders and Remodelers Association commented that the number of firms and individuals needing certification has been greatly exaggerated. Additionally, AGC of NH believes that the cost of the program, along with hiring additional employees, leaves the construction industry paying for bureaucracy that is not needed.
AGC of NH will keep members updated on this issue as information becomes available.
June 2011
Prompt Pay Specification Final Version
AGC of NH’s Highway Specification Committee and the Department of Transportation (DOT) have reached an agreement on the revision to the Prompt Pay Specification (109.09) The specification had gone through a number of revisions as DOT sought to make it more detailed. AGC of NH had several questions on their revision including the use of the language: “subcontractor at any tier.” The AGC Highway Specification Committee made recommendations, and the DOT has accepted those recommendations. DOT plans to have the revised specification out by the end of June.
Prompt Pay Specification Text Section 109.09
Specification Allows Warm Mix Asphalt
During the June 1st meeting of the AGC Highway Specification Committee, the Committee approved the Department of Transportation’s (DOT) addition of warm mix technologies to Supplemental Specification 401, Plant Mix Pavements. Section 2.11.2 states:
The use of Warm Mix Technologies is permitted in mix production. Qualified technologies are listed on the Qualified Warm Mix Asphalt Technologies List.
May 2011
Booklet Highlights Cost of Highway Fund Reduction
Support the Highway Trust Fund was produced by the Associated General Contractors of New Hampshire to illustrate what the reduction in the gas tax will mean to the state of New Hampshire. Presented before the House Finance Committee, the booklet shows that in total, reducing the gas tax from $0.18 to $0.13 for two months will result in an approximate $6 million loss to the Highway Trust Fund. The pamphlet also depicts the current revenues earned from the gas tax, as well as the amount of miles resurfaced each year. It is a brief, but informative look at the state of today’s highway system and its funding.
Click below to view the pamphlet:
Support the Highway Trust Fund pamphlet
April 2011
Senator Ayotte Responds to AGC of NH Letter on Transportation Spending
Earlier this year, AGC of NH sent a letter to U.S. Senator Kelly Ayotte on the importance of adequate federal highway funding. At the time, the letter asked the Senator to vote in support of extending the current transportation authorization, SAFETEA-LU. The letter highlighted the consequences of not passing the extension, including: preventing the federal government from meeting its obligation to reimburse states for highway and bridge construction projects already underway and forcing states to stop or slow payments to contractors for completed work. The letter also reminded the Senator of the importance of a long-term reauthorization.
Senator Ayotte responded that she understands a long-term reauthorization is needed. In her letter, she empathized with the Association’s frustration, and explained why a long-term reauthorization has yet to pass, “As I understand it, the complexity of the surface transportation bill, mechanics of the highway trust fund, and controversies over state funding have, unfortunately, delayed reauthorization initiatives in the past.” The controversies include earmarks for pet projects rather than focusing on transportation priorities. The Senator reiterated her opposition to earmarks, as she did during her campaign.
The letter is available below:
Senator Ayotte Transportation Funding Response Letter
March 2011
Volunteer With Building on Hope
The Building on Hope Organization, a group that provides construction assistance to non-profit service groups, has announced their upcoming 2011 projects. Building on Hope is looking for volunteers to help with various items such as materials, landscaping, furnishings, lighting, and more. The following is a list of the projects.
1. Bridge Community Project, Littleton, NH- Creating a teen center in downtown Littleton, NH.
2. Camp Allen, Bedford, NH- Renovation of camp for special needs individuals.
3. Odell Park Centennial Project, Franklin, NH- Construction of fitness station within park grounds.
4. New Life Home for Women & Children, Manchester, NH- Renovate children’s playroom & learning center.
More information, and what is needed for each project click on the below document:
Building on Hope May 2011 Projects Need Your Help
AGC of NH ipad Giveaway Contest Winners Revealed
The winners of AGC of NH iPad Giveaway Contest were picked during the March 10 Board of Directors meeting. It was lucky Jim Gove of Gove Environmental Services who won the grand prize- an Apple 32 gigabyte 3G iPad 2. Jim Gove currently serves as Vice President of Associates on the Board of Directors, and was the first person entered into the iPad Giveaway.
The contest also included two additional prizes a free golf foursome to the 2011 AGC Golf Tournament and four free tickets to the 2011 Annual Meeting. Able Crane was the lucky recipient of the golf foursome and Nathan Wechsler & Company was the winner of the four free tickets to the 2011 Annual Meeting.
AGC of NH began the iPad Giveaway in October of 2010 as an incentive for our membership. Members had two ways to enter the contest, either recruit new members for the Association or pay their entire 2011 dues by February 1, 2011. Congratulations again to the winners!
February 2011
Contact Your Senator!
Use this link for Senate Contact information:
2011 NH Senate Contact List
November 2010
AGC Testifies at Memorial Bridge Public Hearing
On November, 17 AGC of NH's Gary Abbott attended the public hearing for the Memorial
Bridge Rehabilitation project in Portsmouth, NH. The Department of Transportation (DOT)
had announced that the project would be bid design-build. Gary Abbott attended the hearing
in order to offer testimony about the design build process. The link below is to the written
testimony Gary Abbott presented during the hearing.
AGC of NH Design Build Statement
October 2010
Enter AGC of NH’s 2011 Build NH Awards
Enter for your chance to win a prestigious Build NH Award from AGC of NH. AGC of NH is now accepting entries for the 2011 Build NH Awards. Winning a Build NH Award is a recognition of your company’s dedication and skill in the commercial construction industry. Recipients of these prestigious awards have been innovators employing new technologies and meeting challenges that result in an impactful outcome.
Entries into the Build Awards must be for projects undertaken from 2009-2010. The best entries include many pictures of projects in all stages of completion. Four categories, Best Highway or Bridge Project, Best Environmental Highway or Bridge Project, Best Building Project, and Best Environmental Building Project, give members from each construction sector the chance to showcase their accomplishments.
2009 Build NH Award winners include Harvey Construction Corporation for Best Building Project with the renovation of the Currier Museum of Art, Gilbane Building Company for Best Environmental Building Project with the additions of the East and North Wings to the Concord Hospital, and Redimix Companies for Best Environmental Highway or Bridge Project with the new pervious pavement parking lot for White’s Park.
To download the entry form click on “AGC Resources” and then on the “Events” page. Please call the chapter office at (603) 225-2701 with any questions. Companies may submit entries in more than one category.
September 2010
AGC of NH Asks to Meet With DES Commissioner
On August 20, AGC of NH wrote a letter to Department of Environmental Sciences Commissioner Thomas Burack requesting a meeting with him. The Association is concerned with current environmental regulations and permit procedures. AGC of NH also recognizes the effect that lost projects have on the economy. AGC of NH believes a meeting with the Commissioner could be a starting point for easing these concerns. The full letter is available below.
Letter to DES Commissioner
May 2010
“Campaign Choice: Where Do You Stand on Transportation?”
Transportation is a priority for each American, and should be a top priority for our elected officials. Efficient transportation is a key component in the economic standing of a nation, allowing goods to travel quickly to their ultimate consumer. As globalization increases, the need for a quality transportation system grows as well.
“Campaign Choice: Where Do You Stand on Transportation” looks at the integral part our transportation system plays in our everyday life, and asks how our elected officials and those running for office plan to support it. The booklet touches federal and state funding, making the case that while both are running low on funding, neither branch can support the entire system on its own. The booklet tackles the numerous excuses for not increasing investments with commonsense responses that show that investing in our transportation system means investing in America.
Previous Safer Roads booklets have made the case for the need for investment, showing the growing deficit. This booklet tells the reader that now is the time to make the investment, and illustrates the many ways to make investment a reality and how it will benefit our nation.
Campaign Choice
Best Value Contracting Task Force Passes with Pilot Project
Senate Bill 495 has passed the full House with an amendment that authorizes pilot projects using the best value procurement method, and establishes a task force to study the procurement method. Best value contracting is a procurement method that removes the standard low bidder choice, and instead bases the contract award on subjective measures such as whether or not the contractor provides health insurance, has an apprenticeship program, in-state preference for workers, etc.
AGC of NH has opposed the use of pilot projects in this bill through testimony before full committee and subcommittee hearings of the House Executive Departments and Administration Committee. AGC of NH believes that it is in the best interest of the construction industry and the state to fully explore best value contracting before implementing it. While the policy lauds that it will help create fair work practices, it has the great potential to negatively affect the construction industry, NH workers, and companies. It is important that these factors are explored, in addition to clearly defining the term, setting guidelines, and determining a rating scale for projects.
The amendment, proposed by Representative Harding, will allow a pilot project, or several pilot projects, to be conducted before the task force is able to fully explore the procurement method, developing guidelines and rating scales. Another amendment, proposed by Representative McGuire, did not require a pilot project, but rather allowed the task force to complete its study and then conduct a pilot project if they deem it necessary. AGC of NH called on members to contact the House Committee to let them know the importance of allowing the task force to complete their study before best value contracting is implemented in any way. In addition to calling members to action, AGC of NH also addressed the full committee with an email of its own.
On May 4th, the House Executive Departments and Administration Committee voted the bill 14-5 ought to pass with Representative Harding’s amendment. The majority of the committee stated that in addition to a comprehensive review of current procurement policies and procedures, the proposed task force would develop criteria for no more than five best value pilot projects. Conversely, “The minority was unwilling to short circuit the efforts of the commission's work by authorizing a pilot program before starting the study; in particular, the minority was opposed to accepting the preliminary definition of ‘best value’ presented at this time and exempting the pilot program from all statutory controls over state procurement actions.” The full House voted ought to pass with Representative Harding’s amendment on May 13 with a vote of 185-100. Click here to view the SB 495 Rep. Harding Amendment
Over the summer, there will be critical meetings of the task force, and AGC of NH intends to closely follow those meetings.
AGC of NH Calls for Extension of Gordon Darby OBD Program
New Hampshire’s Executive Council is currently delaying a vote on the extension of the Gordon Darby On Board Diagnostic (OBD) contract. The vote would be to extend the vehicle emissions testing program for an additional two years. The requirements of this program are written in the law, and must be maintained to remain in compliance with Federal Environmental Protection Agency (EPA) rules. There is a possibility of losing highway funds if New Hampshire does not remain in compliance.
Gary Abbott spoke with Commissioner Tom Burack of the Department of Environmental Services and Commissioner John Barthelmes of the Department of Safety on this matter. They said that during the extension, they will look at all the issues and concerns currently being expressed over the current program, and find ways to address those concerns. AGC of NH wrote a letter to the Executive Council urging them to vote to extend the OBD program for an additional two years. AGC of NH stated that program is an important part of the safety requirements for vehicle inspections. The Association also highlighted that without the extension, New Hampshire will most likely be subjected to the withholding of much needed highway funds for projects like the I-93 expansion. AGC of NH does recognize that there may be other factors which are leading to vote postponement, but is unaware of what they may be at this time.
Click here to read the letter: OBD Letter to the Executive Council
March 2010
JLCAR Reviews Stream Crossing Rules
The Joint Legislative Committee on Administrative Rules (JLCAR) did not pass the Department of Environmental Services’ (DES) proposed stream crossing rules on March 5. Following financial objections by the Municipal Association, JLCAR decided to take no action during the time of the hearing. The rules have now moved to the House Public Works Committee, where they were heard on March 23.
With the delay of the rules passage, AGC of NH’s Board of Directors took another look at the rules. They stated that the rules will create a significant rise in costs, and slow economic recovery because of the requirements. In response, AGC of NH has written a Stream Crossing Rules Position Paper, that cites concerns with the rules, as written.
The paper highlights the significant rises in costs due to the required engineer’s analysis, and the cost of installation for an open box culvert.
Possible Suspension of School Building Aid
Senate Bill 486 provides that no school building aid or alternative school building aid grants shall be made to school districts for projects approved on or after June 30, 2010 until June 30, 2012. The bill was introduced by Senator Molly Kelly, who also serves on the Committee to Study School Building Aid. Senator Kelly testified during the March 2 hearing before the Senate Education Committee that the School Building Aid program is growing rapidly, and the state cannot afford to sustain it at its current rate of growth. New Hampshire’s Treasury Department also attended the hearing, and presented a PowerPoint that showed the rapid growth rate of the program. The PowerPoint is available below.
SB 486 School Builidng Aid PowerPoint
Also at the hearing, an amendment was added that changes the suspension from two years to one. The amendment also allows the Department of Education to consult with the state fire marshal to grant a waiver to the suspension, if there is a significant safety problem in the school facility.
February 2010
Chief Economist Gives 2010 Construction Outlook
On February 25, AGC of NH hosted AGC of America’s Chief Economist, Ken Simonson for an Economic Luncheon. Simonson spoke to the audience about construction and materials outlook for 2010. Over 40 members came to hear his presentation, which included numerous graphs, charts, as well as informative forecasts. He also touched on unemployment, and related many of his facts to New Hampshire. Below are links to view his PowerPoint Presentation from the event, as well as a one page fact sheet on the Economic Impact of Construction.
NH Construction & Materials Outlook
NH - Manchester Fact Sheet
DES Meets with Environment Committee to Discuss UST Training
On February 16, AGC of NH’s Environment Committee met with George Lombardo and Mike Juranty of DES to discuss House Bill 1294. House Bill 1294 requires training for owners/operators of underground storage tanks (UST). AGC of NH wrote an initial letter to DES questioning the training, and asking the requirements to be clarified. Mike Juranty responded with the letter below.
DES Response Letter for UST Training
Please note, DES said that training for UST owners/operators is a federal requirement, and UST training will still be required even if House Bill 1294 does not pass.
January 2010
Bill Requires Training for Underground Storage Tank Operators
House Bill 1294 is at the request of the Department of Environmental Services (DES), and establishes requirements for training operators of underground petroleum storage facilities. In written testimony, DES stated they support the bill, as it will allow them to continue receiving federal grants for underground storage tank (UST) program expenses.
A copy of the DES Letter to Chairman Spang can be found here.
The bill was heard before the House Resources Recreation and Development Committee on January 7th. While the hearing went quickly, Gary Abbott was able to speak with DES about AGC of NH’s concerns with the bill. AGC of NH wanted clarification on how this will impact the owner/operator of a UST facility, and how long the training certification will last for. DES has responded with a letter (UST Operater Training Fact Sheet ) outlining what will be required if HB 1294 is passed.
After reading the letter, AGC of NH still believes that the requirements need to be clarified further. AGC of NH’s Environment Committee has also looked over the bill and subsequent letters. They agreed that the bill needs further discussion, and that the training requirements need to be more clearly defined. AGC of NH is inviting DES to the next Environment Committee meeting on February 16 at 2:30 PM. The meeting will be open to all members who would like to attend. If you plan to attend, please register with the chapter office at (603) 225-2701. Registering will ensure that AGC of NH will be able notify you if the meeting date or time changes.
The bill is similar to House Bill 443, which was in session last year. While the bill passed both bodies, it was ultimately vetoed by the Governor because of the second part of the bill. The second part of the bill was relative to requirements for guaranteed price plans and prepaid contracts for petroleum.
December 2009
DES to Hold Hearing on New Rock Crushing Rule Changes
On January 14th at 9 AM, DES will be holding a public hearing at their offices to discuss the proposed rule changes for nonmetallic mineral processing (rock crushing) plant. According to DeS, the changes would create an easier and less expensive permitting system for operators to comply with, but will still adequately limit dust emissions and fulfill DES' obligation to enforce the federal regulations.
To attend this meeting, RSVP to Barbara Dorfschmidt at (603) 271-6796 by January 7, 2010. If you are unable to attend the meeting, but would still like to comment, please address written comments to Barvara Dorfschmidt at NHDES, PO Box 95, Concord, NH 03302, or barbara.dorfschmidt@des.nh.gov.
AGC of NH has received a copy of the Preliminary Draft of Rock Crushing Rules.
2009 Annual Report
The AGC of NH published its 2009 Annual Report.
Click here to view a copy of the Annual Report 2009.
September 2009
AGC of America Creates Blueprint For Construction & Economic Recovery
In response to how the current economic situation is affecting the construction industry, AGC of America has developed a comprehensive plan to guide the industry in the right direction. AGC of America unveiled their plan, titled “Build Now for the Future: A Blueprint for Economic Growth” to the media on September 30, aiming to grasp national attention to the hardship the industry is facing, and will likely face into the future.
AGC of America’s blueprint illustrates how the construction industry plays a larger part in America’s economy than most people realize, and that turning around this industry will help put the nation back together. AGC of America Chief Executive Officer Steve Sandherr is quoted as saying, “The problems facing the construction industry aren’t just devastating construction workers, they are crippling our broader economy. Simply put, you can’t fix our economy until you fix the construction industry.
The plan emphasizes the need for stimulating new private-sector construction, which accounts for 70 percent of the market. Split into 3 sections, the blueprint takes readers through step by step, first with The Need, then with The Plan, and lastly with The Cost vs. Return on Investment.
AGC of America has also sent the plan to each member of Congress for consideration. The full blueprint, as well as associated material, is available for download under “AGC Downloads.”
New Job Corp Facility Comes With Strict PLA Requirements
A new Job Corps Facility is slated to be built in Manchester, NH, with the potential for construction to begin before the year is out. The project is being solicited by the U.S. Department of Labor (DOL), and carries some hefty requirements. These include a government-mandated project labor agreement (PLA), and 100% small business set aside. AGC of NH is concerned that these requirements will prohibit qualified New Hampshire construction firms from being able to bid on the project.
In response, AGC of NH worked with AGC of America to write a letter to the DOL questioning the PLA requirement. AGC of America used the 5 points issued in the Executive Order suggesting the use of PLAs to outline their argument. AGC of NH wrote an additional letter to support AGC of America’s letter, and also to question the 100% small business set aside requirement. AGC of NH is waiting to hear a response from the DOL on our letter, as well as on AGC of America’s letter. The final solicitation is scheduled for release on October 1st. For more information on the project, you can visit www.fbo.gov and use solicitation #DOL099RB20811. AGC of NH will keep members updated as more information becomes available. Both letters are available on the “AGC Downloads” page.
DOT Sets Limits for Overweight/Oversize Permits
On September 29, a meeting was held at the Department of Transportation offices in Concord, NH to discuss the changes DOT will be making to overweight/oversize permits. DOT has been collecting data related to load and axle spacing configurations, and using the results, the Department has created limits to determine when a bridge review is needed. If the axle and load combination exceeds the limits, the bridge review will be conducted at the applicant’s expense. The limits will go into effect on November 2 of this year. The letter and chart can be found here Overweight Permits DOT Letter. More information on this matter is available on the NH DOT website at http://www.nh.gov/dot/org/operations/highwaymaintenance/overhaul/index.htm.
2nd Installment of Construction Law Seminar Series
Hinckley, Allen & Snyder LLP are offering the second segment of their free construction law seminar series on October 14, 2009 at their offices located at 11 South Main Street, Concord, NH. The upcoming seminar will focus on: Critical Contractual Provisions, Understanding the Monumental Changes to the 2007 AIA Documents, and Simplifying Bonding and Insurance Issues.
This free seminar is open to any interested individual, and begins at 8:00 AM with registration and Continental breakfast. If you would like to register for the event, or would like more information, contact Lee Hudson of Hinckley, Allen & Snyder, LLP at (800) 670-8429 ext. 5274. A flyer for the event is available under “AGC Downloads”.
July 2009
Do You Have the Right Poster?
If you’re working on a stimulus funded project, make sure you have the correct “whistleblowers” poster on your jobsite. The State of New Hampshire also requires a whistleblower poster, which is similar to the stimulus one, however on stimulus funded jobsites both posters are required. This will become a Labor Compliance inspection item.
The Stimulus whistleblower poster is titled “Know Your Rights Under the Recovery Act!” You may download the poster here Whistleblower+Poster.
New DES Blasting Best Management Practices Draft
AGC of NH has received the newest draft of the Potential Impacts of Blasting Activities on Water Resources from the DES. This draft is a follow up from the October 2008 document. AGC of NH and its Environment Committee had several concerns with the October version, namely:
- No scientific data that supports the supposition that there are negative impacts on wells from blasting
- Proposed requirements are unnecessary and redundant
- Potential cost of compliance would be unreasonable and burdensome
The Environment Committee will review the new draft in detail at their next meeting on August 6th. Once reviewed, they will make recommendations as to what action AGC of NH should take.
You can read the new draft here DES Blasting Draft.
June 2009
Department of Labor Answers AGC of NH’s OSHA Call
On May 18th, AGC of NH sent a letter to the Department of Labor (DOL) Commissioner, George Copadis about OSHA requirements. It is AGC of NH’s understanding that 10-hour OSHA only applies when there are state funds involved. AGC of NH was forwarded a response that the DOL had been given by the Assistant Attorney General, Anthony Blenkinsop.
AGC of NH’s Board of Directors had reviewed the response, but is unsure if the letter is providing the answer AGC of NH needs. The letter responds to several questions that AGC of NH did not ask, and does not directly answer the one question AGC of NH did ask. The Board of Directors will look at it further at their next meeting. Click here DOL Response Letter June 2009 to read the letter.
House Budget includes Registration Fee Increases
See complete story in our legislative newsletter dated June 29, 2009. The following is a pdf file of that portion of the budget with the registration fee increases. HB 2
Mid-Session Legislative Update
As reported in the final legislative report issued in the June 29, 2009 newsletter, the association did not include legislation that was finished by the mid-session legislative update. The newsletter stated you could get that report here on the website. This is that report - April 2009 Crossover Leg. Report
Update on Administrative Services New Labor Compliance Requirements
Last issue AGC of NH ran an article on the new Labor Compliance Enforcement requirements proposed by Administrative Services for 2010/2011 projects. These new requirements have sparked interest and concern among our members. The AGC of NH Building Committee reviewed the PowerPoint Presentation given by Mark Nogueira from Administrative Services, which described the new requirements.
They had issues with several of the new requirements, namely:
- Require subcontractors to list the general contractor as “additional insured” on Workers’ Compensation policy
- Require general contractors to maintain a daily “log-in” sheet of all personnel entering job-site and verify they are on the master list
- Require general contractors to provide a notarized affidavit, swearing to compliance with all applicable labor laws, along with monthly payment requisitions
The Building Committee questioned the legality and feasibility on these points. As a result, AGC of NH and the Building Committee will be writing a letter to Administrative Services stating their concerns. It is hoped that from the letter, a meeting can be set up with Administrative Services so that more practical requirements can be reached. Once the meeting has been scheduled, AGC of NH will invite all building contractors to participate.
You may view the entire PowerPoint presentation by clicking here Labor Compliance PowerPoint.
Senate Bill 78 Passes House Committee
Senate Bill 78, which refers to contractor accountability and disclosure, was voted ought to pass with amendment by the House Public Works and Highways Committee during the Executive Session on May 26.
The bill requires all general contractors who are awarded a contract for a state project by any state agency through a competitive bid process to create a list of all those involved in the project. This includes the names, addresses, CEOs, CFOs and other LLC principals for each subcontractor. The list must be posted in both a visible location on the job-site, and on the awarding agency’s website. The House committee amended the bill to address several concerns. Where the bill had originally stated that the required list must be updated weekly, it will now be updated monthly. Also, where originally work would have stopped if an unlisted subcontractor were found on the site, the general contractor will now have 36 hours to post their information on the list.
After much discussion, the committee voted 10-6 ought to pass with amendment. With the committee recommending the amended bill pass, it is likely that the House will vote in favor, and that the Senate will concur.
To see the amended version of the bill please click SB 78 Amendment.
Unemployment Trust Fund’s Balance Affects Employers
As unemployment continues to rise, New Hampshire has seen an unprecedented increase in the number of eligible people requesting unemployment compensation. Unemployment claims of this magnitude have not been seen since the early 1990’s. The rapid increase has forced the Department of Employment Security, who is estimating the projections for this year, 2009, to pay out $265 million.
Currently the tax structure is based on an $8,000 taxable wage base, which leads to approximately $81 million in collections. The taxable wage base has not increased since 1992, if it had been steadily increasing, inflation would put the taxable wage base at $14,000 today. Last year, the trust fund had a positive balance of more than $100 million, now it is below $100 million. It is projected that the unemployment rate will jump dramatically in 2010, which will lead the trust fund into the negative by next April. If the trust fund falls into the negative, New Hampshire will have to borrow from the government, and this will affect the federal rate that employers pay.
Through meetings with the Department of Employment Security and the Governor’s office, it is clear that significant legislative changes will have to take place over the next month. About a year ago, a subcommittee for the unemployment advisory council was formed, which AGC’s Gary Abbott participated on, to look at ways to fairly and equitably balance positive and negative balance employers.
The subcommittee for negative balance has recommended:
- Add a new table 3, which amounts to an additional ½ % for those firms who have been in the negative for the preceding three years. Where the current range is 2.8% - 6.5%, it will become 3.3%- 7%
- Create a trigger for the trust fund
- If the balance falls below the trigger, $325 million, there will be an increase in the tax rate in table 2 and 3 by ½ % - 1 ½ % depending on the balance
- The additional fixes to the fund balance because of the rise in benefits is to:
- Increase the taxable wage base will increase from $8,000 to $14,000 in $2,000 increments over the next 3 years
- The increases will not be enough to sustain the fund, which has lead to a proposed 1% surcharge for three year
- The surcharge would apply to all employers
- Recommend a one-week waiting period before collecting benefits
- Addresses the furlough problem and would save $20 million
The unemployment trust fund will come to light in the coming weeks as both the House and the Senate work on this comprehensive solution. The changes will be effective January 1, 2010, so keep in mind that this will dramatically increase unemployed taxes for seasonal employers.
If you would like to learn more, click here Taxable Wage Base Chart
to read the proposals and spreadsheets from the meetings on the unemployment trust fund.
To view the table on taxable wage base increase, click here Taxable Wage Base Amendment.
Please click here to read Senate Bill 129 SB 129 Amendment
, which has been amended to include the reforms to the unemployment trust fund.
To read the Department of Employment Security’s report, please visit: http://www.nh.gov/nhes/elmi/pdfzip/TrustFundReport.pdf.
February 2009
Effluent Limitation Guidelines Proposed for Construction & Development Industry
On February 20th, AGC of NH sent a letter to the U.S. Environmental Protection Agency (EPA) regarding their proposal for tighter controls on effluent limitation guidelines (ELG). The proposed rule would cost the industry nearly $2 billion annually, which amounts to about $7,000 per acre, according to EPA estimates.
Once finalized, the new regulations would be incorporated into all state and federal stormwater permits for construction activities. The rule would have a direct significant impact on virtually all aspects of the construction industry.
EPA is considering three regulatory options:
Prescriptive sediment and erosion controls (i.e. best management practices- BMP’s).Prescriptive sediment and erosion controls plus a numeric turbidity standard for construction on certain larger sites that meet rainfall and soil-type conditions.
Prescriptive sediment and erosion controls plus a numeric turbidity for all sites that disturb at least 10 acres.
The AGC of NH strongly opposed options 2 and 3, as they would establish a numeric effluent limit and mandate active treatment systems. The Association also disagreed with EPA’s assumption that all sites are always 90% disturbed and without any erosion and sediment controls for 9 months at a time; our experience is these factors vary drastically depending on the type of construction. Major construction projects are often thirty acres or greater in size, and on any given project, generally no more than 20% of the site is disturbed at any one time. To protect the environment, we implement erosion and sediment controls.
AGC of NH also stated in the letter to EPA its concern that EPA lacks the industry and site-specific data and analyses needed to develop an appropriate ELG, since they bypassed the typical industry information collection process normally associated with ELG rulemakings. Lacking good data, EPA has overestimated both the portion of a jobsite likely to be disturbed at any one time and the likely duration of the disturbance, thereby exaggerating the amount of sediment runoff from active sites. In addition, EPA has not accurately accounted for the erosion and sediment controls that construction professionals currently use on their jobsites. Due to these errors, EPA’s model overstates the environmental benefits that would result from the proposed ELG, skewing the cost effectiveness analysis. The Association expressed its support for option 1 and urged EPA to ensure that the final ELG fits within the existing construction storm water general permit (CGP) framework.
If you would like to see the complete letter sent to EPA, click here EPA Letter- Effluent Limitation.
January 2009
AGC of America Releases Details of Stimulus Package
On January 15, the House Democratic Leadership announced details of the American Recovery and Reinvestment Act.
The House Appropriations and Ways and Means Committees released details of the $825 billion package. The total package consists of $275 billion in economic recovery tax cuts and $550 billion in targeted investments, coupled with several unprecedented accountability measures. AGC estimates that approximately $150 billion of the spending proposed in this bill would benefit the construction industry. House Speaker Nancy Pelosi (D-CA), said today that she hoped these Committees would take up the bill late next week, with the goal of sending a final product to the White House by mid-February. According to House Appropriations Chairman Dave Obey (D-WI), this package would create and save 3 to 4 million jobs and jumpstart our economy. In many instances, funds would be distributed through existing formulas. How funds are spent, all announcements of contract and grant competitions and awards, and formula grant allocations must be posted on an open government web site. Governors, mayors or others making funding decisions must personally certify that the investment has been fully vetted and is an appropriate use of taxpayer dollars.
A Recovery Act Accountability and Transparency Board would also be created to review management of recovery dollars and provide early warning of problems. Federal and state whistleblowers that report fraud and abuse are protected. Finally, there are no earmarks in this package. The House Ways and Means Committee’s $275 billion tax package would provide tax, health, and other benefits to American families, as well as incentives for businesses to grow and create jobs.
Highlights in the package benefiting the construction industry include:
- One-year deferral of the 3 percent withholding law from 2011 to 2012
- Bonus depreciation
- 5-year carry-back of net operating losses
- Extension of increased small business expensing
- Repeal AMT limits on new private activity bonds
- School construction bonds
- Remove repayment requirement on $7,500 first-time homebuyer credit
- Tax exempt and tax credit bonds to “recovery zones” (i.e., areas of high unemployment, foreclosures, or poverty)
- Various energy efficiency tax incentives and bonds
AGC’s CEO Stephen Sandherr released a statement indicating that the newly released details of the proposed stimulus package provide encouraging signs that Congress is willing to make significant, but essential, investments needed to rebuild our aging infrastructure and inefficient public buildings while repairing America’s ailing economy. However, he pointed out that in an environment where almost 900,000 construction workers have lost their jobs, the construction community has the capacity to do even more work than is currently being considered. AGC is continuing to meet with House and Senate leaders to identify every possible avenue to increase the proposed investments in infrastructure in the draft package and enact the bill as soon as possible.
Click on the name to view the following documents:
House Appropriations Stimulus (1-15-09) ARRA Summary
House Stimulus Overview House Stimulus Overview
Recovery Bill (1-15-09) Recovery Bill
Recovery Report (1-15-09) Recovery Report
Chairman Rangel Outlines Economic Stimulus Package Rangel Outlines Recovery
2008 Annual Report
The AGC of NH published it's 2008 Annual Report.
Click here to view a pdf. version. 2008 Annual Report