Final tax legislation will lower rates for construction firms, spur economic growth and benefit construction employers for years

December 20, 2017

The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, released the following statement regarding final passage of federal tax reform:

“Today, Congress passed comprehensive tax reform legislation that will lower rates, spur economic growth and impact construction businesses for years to come. However, this process did not start as well as it ended for the construction industry. (See chart linked here for details on the final bill)

According to data released by the US Bureau of Labor Statistics, the national construction industry added 24,000 net new jobs on a seasonally adjusted basis in November. Nonresidential construction employment added 8,600 net new jobs in November, a figure that would have been substantially higher were it not for heavy and civil engineering, which lost 7,800 for the month. In October, nonresidential construction firms shed 3,600 net positions.

Press Release from Associated Builders and Contractors, Inc (ABC)

Full release

WASHINGTON, Dec. 8—The nation’s construction sector added 24,000 net new jobs in November, representing a 0.3 percent month-over-month increase, according to an Associated Builders and Contractors (ABC) analysis of Bureau of Labor Statistics data released today.

Press Release from Associated Builders and Contractors, Inc.

WASHINGTON, Jan. 3—Nonresidential construction spending expanded 0.6 percent in November, totaling $719.2 billion on a seasonally adjusted basis, according to an Associated Builders and Contractors (ABC) analysis of data released today by the U.S. Census Bureau. Despite the month-over-month expansion, nonresidential spending fell 1.3 percent from November 2016.

Private nonresidential construction spending is down 3.1 percent year-over-year, while public sector spending has increased 1.7 percent over the same period. Spending in the manufacturing and power categories, two of the larger nonresidential subsectors, fell by a combined $21.7 billion over the past year.

Original article on enr.com

Construction and engineering groups are sifting through the sweeping tax-code rewrite that the Senate approved on Dec. 2, but some see it as better than the House-passed version, particularly in its treatment of partnerships, sole proprietorships and other “pass-through” entities.

The Senate’s passage of an estimated $1.4-trillion-plus package of tax cuts early in the morning of Dec. 2 by 51-49, almost completely on party lines, marked a major step forward for the legislation, the top legislative priority for congressional Republicans and the Trump administration.

Next, Senate negotiators will have to work out differences between their bill and the $1.4-trillion version that the House passed on Nov. 16.

Some senators who felt that earlier versions of the Senate measure didn’t provide enough tax relief to pass-throughs, which are taxed on individual, not corporate, rates.

The bill’s prime author, Finance Committee Chairman Orrin Hatch, and other GOP leaders won votes by increasing a deduction for pass-throughs to 23%, from 17.4% in an earlier version.

Press Release from Associated Builders and Contractors, Inc.

WASHINGTON, Dec. 1 – Nonresidential construction spending rose 2.1 percent in October, totaling $717.6 billion on a seasonally adjusted basis, according to an Associated Builders and Contractors (ABC) analysis of data released by the U.S. Census Bureau. The level of spending, however, remains virtually unchanged from a year ago.

Ten of the sixteen subcategories experienced positive growth, with educational spending topping the list with an increase of 9 percent. Public safety (up 6.8 percent), office (up 5.3 percent) and conservation and development (up 4.3 percent) were the next highest subcategories. Religious (down 3.7%) and amusement and recreation (down 3.5%) spending saw the largest decreases over the previous month.

According to data released by the US Bureau of Labor Statistics, the national construction industry added 11,000 net new jobs on a seasonally adjusted basis in October. The nonresidential sector saw a decline of 2,000 net jobs, while the residential sector added about 13,000 jobs.

Press Release from Associated Builders and Contractors, Inc (ABC)

Full release

WASHINGTON, Nov. 3—According to an Associated Builders and Contractors (ABC) analysis of data released by the Bureau of Labor Statistics today, the nation’s construction sector added 11,000 net new jobs in October, matching the revised total from September. Nonresidential construction employment, however, experienced a net decline of 2,000 jobs. The residential sector added approximately 13,000 net new jobs.

Press Release from Associated Builders and Contractors, Inc.

WASHINGTON, Nov. 1—Nonresidential construction spending rose 0.5 percent in September, totaling $698.1 billion on a seasonally adjusted basis, according to an Associated Builders and Contractors (ABC) analysis of data from the U.S. Census Bureau. However, nonresidential construction spending is down 2.9 percent on a year-over-year basis, with construction spending related to manufacturing down 20.3 percent since September 2016. August and July nonresidential spending totals were revised upwards by a collective $11 billion, however.

According to the data released last month by the US Bureau of Labor Statistics, the national construction industry added 8,000 net new jobs on a seasonally adjusted basis in September. The nonresidential sector added 11,700 jobs (mostly in the nonresidential specialty trade contractors segment), meaning that the residential construction segment lost several thousand jobs.

Press Release from Associated Builders and Contractors, Inc (ABC)

Full release

Design-bid-build forms were last updated in 2007

The American Institute of Architects (AIA) is releasing the second part of the once-in-a-decade 2017 edition of the A201, design-bid-build family of documents for a total of 34 newly revised 2017 documents. This release includes updated versions of the Architect Scope documents and many of the frequently-used AIA forms. Working with architects, contractors, subcontractors and owners, the AIA Documents Committee updates this core set of documents every 10 years. This helps ensure that the AIA legal forms and agreements reflect changes and trends in the industry, and that the AIA Contract Documents remain the Industry Standard.

Article written by Lidia Dinkova on Daily Business Review

The challenges after Hurricane Irma abound: Downed trees, power outages — and a competitive construction climate awaiting South Floridians rebuilding or repairing their homes and businesses.

"Everybody is in competition if you are in the construction industry right now. The competition for labor and materials had already started and predated these storms," said Conrad Lazo, construction attorney and shareholder at Becker & Poliakoff in Tampa, referring to the tolls taken by Hurricanes Harvey, Irma and Maria.

The burden would be on labor and materials, and supplies of both had tightened in recent months, he said. A departure from construction jobs because of the Great Recession — by some estimates 20 percent of the workforce left the trades — and a robust demand for building materials have created a competitive construction industry, Lazo said.

"We are dealing with an expansion economy in places like Tampa and Miami. … When there's a lot of demand and the supply gets scarce, dollar values go up," he said. "These storms would just put a burden on everything."