PHOTO COURTESY OF ACEC / Cable Risdon JOBS IMPACT KCI Technologies Neimeyer says the withholding mandate would prevent his company from hiring 100 new engineers. Related Links: Obama, Republicans Clash Over Deficit-Cutting Proposal Senate Bill Will Have Flexibility for Enhancements Program Construction officials' hopes have risen that Congress will repeal what they view as a financially harmful mandate: a requirement that agencies withhold from contractors 3% of each contract's value. The provision, enacted in 2006, is to take effect in January 2013, and industry executives say it would squeeze or even wipe out their profit margins on government projects.The 3%
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.