Federal Infrastructure P3 Financing

ASA joined The Surety & Fidelity Association of America in a letter to Congressional Leadership urging their passage of legislation introduced by Rep. Lynch (D-MA), H.R. 6359, the Promoting Infrastructure by Protecting Our Subcontractors and Taxpayers Act. The bill would ensure existing essential protections for workers, small business contractors and taxpayers continue for all forms of project financing, including Public Private Partnerships (P3s), where federal funds are being used. The growing popularity of P3s allows the public sector to leverage private capital to help fund and finance important public works projects.

This procurement method can help encourage much needed investment in our nation’s infrastructure. However, P3 projects often do not maintain the same payment and performance protections that have been required on public infrastructure projects for over one hundred years. These protections are vital to workers, small business subcontractors tasked with building the project in the event the contractor goes out of business before completing its contract or meeting its payment obligations. 

Since its launch in 1998, the Transportation Infrastructure Finance and Innovation Act (TIFIA) has financed dozens of diverse and important infrastructure projects, representing over $100 billion in infrastructure investment across the country. To ensure the federal investment in such projects is protected, TIFIA should be modernized to reflect the changing nature of project financing. These new projects should include the same payment and performance security requirements that protect all other federal infrastructure funding. Currently, the TIFIA program is at risk of financing under- or unprotected P3 projects, leaving taxpayers, small businesses, and workers at risk.  

OSHA Issues New FAQ’s on COVID-19 and the Workplace

The Occupational Safety and Health Administration (OSHA) released answers to nearly 40 frequently asked questions (FAQs) on protecting workers during the ongoing COVD-19 pandemic. OSHA’s FAQ’s now speak to key issue areas including employee testing, employer requirements, use of personal protective equipment, return to work protocols, and cleaning guidelines in the workplace. The FAQ guidance is part of a series of OSHA publications on workplace safety during COVID-19.

Click here to review the FAQ’s.

2020 2Q Cost Report: COVID-19 Crashes Market Optimism 

Due to the COVID-19 pandemic firms have seen their work and potential jobs rapidly decline. According to ENR’s latest Construction Industry Confidence Index survey, the index plunged 20 points from the first to second quarter of 2020, plunging to a 36 rating. This is the lowest rating since 2010. While all 15 market sectors fell, the distribution and warehouse sector was only down 2 points to a 63 rating. Anything above 50 is considered a growing market.

Construction Industry Payment Protection Legislation Pass TN General Assembly

The American Subcontractors Association would like to congratulate ASA of TN on the passage of major legislation that updates TN’s Prompt Pay ACT, strengthening subcontractor rights.

This initiative began by ASA of TN to ensure payment for work completed, and evolved over two years into a united effort of leading organizations in the commercial construction industry for comprehensive reform of TN’s construction statutes. The tireless efforts of Senator Jack Johnson, State Rep. Ron Gant, industry members, construction law experts, and all others that brought together the specific details of the bill, resulted in a win for all!

Throughout the development of this bill, the American Subcontractors Association of TN became a strong voice for subcontractors in Tennessee. This success story is just another example of the stellar work that our ASA chapters are involved with, and all of us at ASA National want to offer our congratulations on a job well done. 

Below are 10 important points that explain the Construction Industry Payment Protection Act:

1. Provides consistent definitions and terminology throughout construction statutes
2. Ensures and clarifies adequate timing, notice, and penalty provisions for the construction industry.
3. Clarifies language to ensure fair procedures for contractors and subcontractors to recover payment for work completed per contract.
4. Sets interest rates for late payment in line with those applicable to the State of Tennessee purchases.
5. Introduces a “stop work” notice procedure to allow contractors & subcontractors to stop work when they are not paid per the contract agreement.
6. Introduces a “Demand for Reasonable Assurances” to ensure the owner has obtained sufficient funding to pay for all labor and materials on a project
7. Provides forms for use by contractors and subcontractors to serve notice of their rights
8. Clarifies the construction statute of repose applies to litigation and arbitration
9. Affirms that limitations of liability do not violate public policy.
10. Eliminates exemptions and loopholes from construction statutes.

U.S. Department of Labor Issues OSHA Guidance as Non-Essential Businesses Reopen and Employees Return to Work

The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has issued guidance to assist employers reopening non-essential businesses and their employees returning to work during the evolving coronavirus pandemic. The guidance supplements the U.S. Department of Labor and U.S. Department of Health and Human Services’ previously developed Guidance on Preparing Workplaces for COVID-19 and the White House’s Guidelines for Opening Up America Again.

The guidelines provide general principles for updating restrictions originally put in place to slow the spread of the coronavirus. During each phase of the reopening process, employers should continue to focus on strategies for basic hygiene, social distancing, identification and isolation of sick employees, workplace controls and flexibilities, and employee training.

OSHA recommends that employers continually monitor federal, state, and local government guidelines for updated information about ongoing community transmission and mitigation measures, as well as for evolving guidance on disinfection and other best practices for worker protection.

Click here to read the guidance.

Members: Get the Most Out of Your ASA InfoHub

The InfoHub is an incredibly robust library of documents and resources available to ASA Members only! New resources are being added regularly, and we highly encourage all members to take advantage of one of the best parts of an ASA membership. Never used the InfoHub? Now is the time to start!

One of the most recent additions is the “Subcontract Documents Suite 2020”.   This robust document includes:

• ASA Subcontractor Bid Proposal, including Instructions page, form for completion and conditions of the bid proposal
• ASA Wrap-Up Insurance Bid Conditions
• ASA Subcontract Addendum, including Instructions page and form for completion
• ASA Wrap-Up Insurance Subcontract Conditions
• ASA Short-Form Subcontract Addendum

In addition, you can find the  “Subcontractor Negotiating Tips: A Compilation”. This comprehensive guide includes information on:

• Scope of Work
• Subcontractor’s Responsibilities
• Contractor’s Responsibilities
• Progress Schedule
• Changes
• Payment
• Indemnity, Insurance, and Bonds
• Suspension Notice to Cure, and Termination
• Dispute Mitigation and Resolution

All of these documents are incredibly important to all subcontractors.  If you aren’t using the InfoHub, you are missing out on one of the key benefits of your ASA Membership.  

To access the InfoHub, click the “Member Login” button at the top of www.asaonline.com, log in to your account, and then select “Resources” from the menu on the left side of the screen. Once there, use the search bar to locate documents, ASAToday, archives, and much more! If you’re NOT an ASA member – what are you waiting for?!