By Patrick Hogan, handle.com

The Electoral College has declared Joe Biden and Kamala Harris as the new president-elect and vice-president-elect of the United States, respectively. The impending change in leadership is expected to have a huge impact on the construction industry.

While administrative and policy changes are expected, certain aspects concerning the construction sector will likely remain as they are. In this light, we review five things that contractors can expect under the Biden-Harris administration.

Domestic Priorities

Biden is expected to continue current president Donald Trump’s policies that favor local materials over imported ones. The construction sector can, therefore, anticipate the Biden administration purchasing American-made products and implementing policies that will support domestic businesses.  

One thing to watch out for would be how Biden will address the ongoing tariff and trade wars that marred Trump’s administration. Trump has moved to drive down US imports from China, which has been met with similar restrictions from the Chinese government. While contractors can expect to see Biden do what Trump has done as regards preferring domestic products, it is still unknown if he would reverse Trump’s decision regarding working with groups like the World Trade Organization.

Tech Wars

Some experts are claiming that the real battle against China isn’t about trade and tariffs but about technology. Trump is known for having a hardline stance against Chinese products, and he even imposed restrictions against tech brands like Huawei. This was known to be Trump’s precaution against the spread of Chinese influence all over the world.

Biden is expected to exercise the same aggressive stance on export controls, although his approach may be a little different. Instead of focusing on penalizing China, Biden may look into building relationships with the US’ allies in Europe. This strategy could help promote and popularize Western technology over Chinese products.

Contractors should watch out for how this story develops, not only because of the increasing digitalization of many construction management tools, but also because restrictions on technology imports may be extended to restrictions on other products and materials.

“Build Back Better”

Biden and Harris have a “Build Back Better” plan, which seeks to provide significant funding and support for construction. On top of this, the plan also acknowledges the need to address the ongoing problem about climate change.

If pushed, the “Build Back Better” plan will see a $2 trillion investment to be rolled out over four years. Based on the proposal, the plan will seek to implement subsidies for renewable energy projects and help companies comply with the required emission reduction programs.

The plan also aims to open new job opportunities for construction among other industries, and also offers guidance for architects and contractors on how to design energy-efficient infrastructures. Environmental advocates, however, are worried that this program may not successfully push through Congress, especially if Republicans hold onto the Senate. 

Infrastructure Package

Many construction groups expressed support for Biden after being declared the winner by most media outlets in the recent presidential elections. The same groups also recognized Trump’s failed promises to the construction sector.

Biden, as part of the “Build Back Better” program, promises to shell out $2 trillion all for infrastructure renewal. As mentioned, the plan does not only address the rebuilding of roads and existing infrastructure, but also aims to allocate money to subsidizing renewable energy projects and developing universal access to broadband.

Stricter Enforcement

Democratic administrations are known for strict enforcement of rules, so contractors should expect to pay more attention to legal and administrative approvals of their projects. Laws like the False Claims Act and the Foreign Corrupt Practices Act will be strictly enforced, so contractors are advised to take serious precautions to ensure that they abide by the rules.

Furthermore, government agencies like the Small Business Administration may become more meticulous in approving loans as well as in forgiving them. This is important especially with the increase in the number of loan-takers during the ongoing coronavirus pandemic. Contractors who have availed of the Payment Protection Program services should expect to be scrutinized closely before their loans are forgiven.

About the Author: 

Patrick Hogan is the CEO of Handle.com, where they build software that helps contractors, subcontractors, and material suppliers with filing documents like preliminary notices to avoid late payments. Handle.com also provides funding for construction businesses in the form of invoice factoring, material supply trade credit, and mechanics lien purchasing.