Now that legislation revamping the nation’s health-care system has been signed into law, construction companies and unions are poring over its provisions, trying to determine the impact of its sweeping changes. Some suggest the measure, enacted on March 30, will drive up firms’ premiums. Others are taking a wait-and-see approach. “The devil is always in the details,” says Stuart Binstock, CEO of the Finishing Contractors Association. Whether the law will produce the benefits its architects hope for isn’t clear, says American Subcontractors Association spokesman David Mendes. “When you’re talking about budget reductions and the costs for the program,” he says,
CityCenter, the country’s largest private development, is being sued by Perini Building Co., a unit of Tutor Perini Corp., Sylmar, Calif., over work disputes on the $8.5-billion, 18 million-sq-ft Las Vegas Strip complex of hotels, homes and entertainment. On March 25, Perini filed a lawsuit in Clark County Eighth Judicial District Court against several entities controlled by property owners—MGM Mirage Inc. and Infinity World Development Corp., both units of Dubai World, the investment arm of the Persian Gulf state—seeking $490 million for unpaid construction work on the hotel-casino. The 13-page complaint says the construction contract grew from $3.5 billion to
Despite progress in Congress on a multiyear aviation measure, it looks like another extension—the 12th since 2007—is on its way for Federal Aviation Administration programs, including airport construction grants. The Senate on March 22 approved a two-year, $35-billion FAA authorization by a 93-0 vote. Todd Hauptli, American Association of Airport Executives’ senior executive vice president, says, “Passage of the Senate bill is an important step in the legislative process [and] overdue.” The aviation bill next must be reconciled with a three-year, $53.5-billion measure the House passed last May. There’s no dispute about the funding for FAA Airport Improvement Program (AIP)
States and construction companies forced to cope with stopgap federal bills that provided transportation funding on the installment plan now have a bit more breathing room. The Hiring Incentives to Restore Employment (HIRE) Act, signed into law on March 18, includes yet another highway-transit extension. But this one stretches through December, and these days, that almost qualifies as a long-term bill. State and industry officials would much rather have a multiyear measure, but in this election-shortened year, the nine-month bill appears to be the best they will get. New law also bolsters Highway Trust Fund with $19.5-billion transfer from general
While President Obama signed the health-care reform legislation into law at a jubilant White House ceremony on March 23, grim-faced Republicans geared up for a battle in the Senate over a “reconciliation” package that amends the bill just signed into law. Riding with that reconciliation measure is the fate of a provision that has divided the construction industry. That provision, sponsored by Sen. Jeff Merkley (D-Ore.), was in the Senate-passed version of the bill and thus is now law. It requires construction companies with more than five full-time employees and a payroll of $250,000 or more to offer health-care coverage
URS Corp., San Francisco, has settled a lawsuit by the Minnesota Dept. of Transportation on all claims by the state over the collapse of the I-35 bridge spanning the Mississippi River in Minneapolis on Aug. 1, 2007. The settlement was for a reported $5 million. URS was hired by the state to inspect and recommend action on state bridges, including the I-35 bridge. The company denies any wrongdoing or fault in the matter and says the settlement lets it “avoid the cost and time of further litigation with the State.” It points out that the National Transportation Safety Board concluded
Rocky economic times, green infrastructure, lean construction and helping the industry be heard were themes at the Associated General Contractors of America convention in Orlando on March 17-20. AGC has to be about “the industry, not about the politics,” says AGC’s new president, Ted Aadland, CEO of Aadland Evans Construction Inc., Portland, Ore. “We can’t afford to be a partisan organization. We need to work with elected officials in both parties on the issues.” Aadland said AGC is like “the sleeping giant”—members can “wake up” to influence those who make codes and regulations and reach out to other construction associations
After a delay of more than seven months, a two-year, $34.6-billion Federal Aviation Administration reauthorization finally has made it to the Senate floor. For construction, the bill’s key item is the $8.1 billion it would provide for Airport Improvement Program (AIP) grants, which finance runway work and other infrastructure projects. Of the bill’s $8.1 billion, $4 billion would be for 2010 and $4.1 billion would be for 2011. Funds would be subject to annual appropriations. This year’s AIP appropriation is $3.5 billion. If the Senate passes the bill, the next step would be a conference with the House, which approved
With the House nearing a critical health-care vote, construction is keeping a watchful eye on whether one controversial provision survives. That provision, sponsored by Sen. Jeff Merkley (D-Ore.), would require small contractors to provide health coverage or pay a penalty. The language is in the health-care bill the Senate passed. If the House does not remove the provision in an anticipated “corrections” measure, it could become law. House Speaker Pelosi is struggling to garner support for a ‘corrections’ bill. Merkley’s proposal has split the industry. Groups such as the Associated Builders and Contractors and Associated General Contractors want to see
Forest City Ratner Cos., developer of a controversial arena in Brooklyn, N.Y., finally broke ground on the project after years of delay, legal battles by residents fighting New York City’s use of eminent domain, a change of architect—from Frank Gehry to Ellerbe Becket and SHoP Architects—and two redesigns. The Barclays Center complex is planned as the future home of the National Basketball Association’s New Jersey Nets and as the centerpiece of a planned 22-acre sports village, which includes office buildings and housing. Site work has been under way since last fall, with construction set for completion in 2012.
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