Íæż½ã½ã of America and ten other organizations sent a letter October 28, 2009 to House Committee on Financial Services Chairman Barney Frank (D-MA) and Ranking Member Spencer Baucus (R-AL) encouraging them to focus on financial reforms that support the recovery of the market and have a positive impact on the commercial real estate sector. Click here to view the letter.
New York City city council has proposed a law that would allow building permits to be renewed up to four years after their expiration. Under the new law, buildings that wish to renew expired permits must comply with strict safety requirements to ensure that the jobsite is safe and properly maintained.   If participating builders comply with the regulations, permits can be renewed in two two-year cycles. According to Crain's New York Business, Department of Buildings Commissioner Robert LiMandri encouraged the proposal, saying, "This new legislation will encourage [property owners] to better safeguard their stalled site so they can resume work quickly one financing is secured and complete their construction projects, which will benefit the city's communities and its economy."Read the article here.
A new chart published by Reed Construction Data shows the twenty largest upcoming educational and medical construction projects in the United States. These large projects are important to point out because they can greatly affect the market, due to their size and scope, and highlight geographic areas that have projects progressing.For the complete list of projects, visit Reed Construction Data.
Written by John Lynch from the State of Washington and published as a joint effort of Íæż½ã½ã of America and the National Association of State Facilities Administrators (NASFA), this eight page article is targeted toward public owners who construct capital projects and those contractors who are engaged in this type of work. It is particularly useful in this challenging economy.Click here to access the article. For more information, contact Mike Stark at (703) 837-5365 or starkm@agc.org.
New safety concerns regarding the management of coal combustion wastes may spark first-time federal rules that could jeopardize the future use of fly ash in the construction of roads and buildings.  Last December, a containment failure at a Tennessee-based waste impoundment released approximately 1 billion gallons of coal ash sludge into the adjoining rivers and neighborhood, resulting in more than $1 billion in clean up costs. The accident has brought the public's attention to the hundreds of similar impoundments nationwide and triggered an evaluation of how effectively states and the federal government are addressing the storage and disposal of coal combustion waste.Íæż½ã½ã has expressed to EPA its concern that a hazardous determination for coal combustion wastes would undermine the decades of its successful beneficial use by the construction industry.  Íæż½ã½ã's Environmental Network Steering Committee Members also will address this issue at a meeting with EPA staff in October. Íæż½ã½ã will continue to monitor and report on EPA action and will provide expert comments to EPA at the appropriate time.  Members should look for alerts from Íæż½ã½ã about the potential regulations and opportunities for member comment to EPA once the Agency proposes a rulemaking and opens the public comment period. For more on coal combustion waste, EPA action, the future impact on the construction industry, and Íæż½ã½ã's action, please read the entire article from Íæż½ã½ã's Environmental Observer here.For more information, please contact Melinda Tomaino at (703) 837-5415 or tomainom@agc.org.
A whole host of training, certification and work practice requirements called for by the U.S. Environmental Protection Agency's Lead-Based Paint Renovation, Repair and Painting (RRP) Program are slated to take effect in April 2010. By that date, construction firms must apply for and receive EPA certification to disturb paint as part of their work in pre-1978 housing and child-occupied facilities. In addition, all of these jobs must be supervised by certified renovators; specifically, individuals who have completed an EPA-accredited, full-day training course. Plus, other craft workers on such jobsites must be properly trained and equipped to follow the RRP Program's lead-safe work practices when performing their assigned tasks. Íæż½ã½ã members covered by the RRP rule should take steps now to meet the upcoming April 2010 compliance deadline. EPA's RRP Program is a federal regulatory program affecting construction firms and individual workers who disturb painted surfaces.  It applies to residential houses, apartments and child-occupied facilities such as schools and day-care centers built before 1978. It includes training, certification and work practice requirements that take effect in April 2010, as well as pre-renovation education requirements that are currently in effect. Renovation is broadly defined as any activity that disturbs painted surfaces and includes most repair, remodeling and maintenance activities, including window replacement. Because the term "renovation" is defined so broadly, many contractors who are not generally considered "renovators," as that term is commonly used, are considered to be "renovators" under the RRP Program and must follow the rule's requirements.Training, Certification & Work Practice Requirements Take Effect April 2010!Under EPA's RRP Program, both construction firms and individual workers who perform (or direct other craft workers to perform) renovations must be certified by EPA by April 2010.  In addition, all craft workers must be trained on the lead-safe work practices that they must use when performing their assigned tasks.A construction firm can become certified to perform renovations by submitting an application for firm certification (PDF) and fee payment to EPA. The Agency will begin processing applications on October 22, 2009. The Agency has up to 90 days after receiving a complete request for certification to approve or disapprove the application. The certified construction firm is required to ensure (1) that all individuals performing activities that disturb painted surfaces on behalf of the firm are either certified renovators or have been trained by a certified renovator; (2) that a certified renovator is assigned to each renovation project; (3) that the program's recordkeeping requirements are met; and (4) that the pre-renovation educational materials are properly distributed (see below).An individual worker can become a certified renovator by successfully completing an eight-hour initial renovator training course offered by an accredited training provider. The course completion certificate serves as proof of certification. The certified individual must then complete an accredited refresher course every 5 years. (Note:  Individuals with prior relevant EPA or U.S. Department of Housing and Urban Development training (e.g., certified lead abatement contractors) need only complete a refresher course.) EPA estimates that that there is an initial trainee base of approximately 250,000 renovators. EPA reports that hundreds of workers have already become EPA-certified renovators; however, EPA warns that it may be difficult to find an open course if you wait until right before the compliance deadline.  As of October 6, 2009, EPA has 72 accredited training providers.  Read the list of EPA's accredited training providers.The certified renovator is required to ensure that the renovation is performed in accordance with the work practice standards of the RRP Program, among other things. These requirements pertain to warning signs and work area containment, the restriction or prohibition of certain practices (e.g., high heat gun, torch, power sanding), waste handling, cleaning and post-renovation cleaning verification. EPA's rule does not require everyone involved in performing a regulated renovation project to receive training from an accredited training provider. The rule allows firms to use other workers to perform renovation activities, as long as they receive on-the-job training (OJT) in work practices from a certified renovator.Pre-renovation Education Requirements Are Currently In Effect!Currently, contractors who perform renovation, repairs and painting jobs in pre-1978 housing and child-occupied facilities must, before beginning work, provide owners, tenants and child-care facilities with a copy of EPA's lead hazard information pamphlet, Renovate Right: Important Lead Hazard Information for Families, Child Care Providers, and Schools (PDF) | En Español (PDF).  Contractors must document compliance with this requirement. EPA's pre-renovation disclosure form (PDF) may be used for this purpose. Failure to comply with EPA's RRP Program requirements could result in penalties of up to $37,500 per day per violation.For additional information, visit EPA's web site at http://epa.gov/lead/pubs/renovation.htm or call the National Lead Information Center (NLIC) at 1(800) 424-LEAD [5323] to find out more. See also the June 2009 issue of Íæż½ã½ã's Environmental Observer newsletter at http://newsmanager.commpartners.com/agcenv/issues/2009-06-01/3.html.
On October 1, the president signed legislation for a three-month extension to authorize programs of the Federal Aviation Administration, which was scheduled to expire September 30. H.R. 3607 continues federal aviation programs through December 31, providing $1 billion in funding for the Airport Improvement Program. This action was necessary because Congress has been unable to come to an agreement on a long-term reauthorization. FAA's authorizing legislation expired in 2007 and has been extended six times since then. The House passed its four-year authorization measure May 21 (H.R. 915). In the Senate, the Commerce, Science, and Transportation Committee has reported a two-year bill (S. 1451), but the Finance Committee, which must act on the revenue title, has not taken action.For more information, contact Brian Deery at deeryb@agc.org.
KSFY-Sioux Falls, S.D., reported that all of the South Dakota schools that applied for the Qualified School Construction Bonds program have received interest-free loans. The $56 million will be used to help rebuild school infrastructure and accounts for almost one third of the total cost of the building projects.To read the entire article, please click here.
An ENR article reports that "some economists have dubbed the current economic troubles 'The Great Recession' to differentiate it from the Great Depression of the 1930s. While there are significant differences between the two economic calamities, there is one striking similarity: a sharp and prolonged decline in construction costs."Read the full article here. (ENR subscription required)
In a CNBC interview, CEO Daniel Tishman, of Tishman Construction, discussed the ominous future of commercial real estate. In the interview, Tishman addressed the fact that trillions of dollars will need to be refinanced in the next five to seven years, potentially causing a financial crisis. Even properties doing well will not be able to be refinanced. He maintained that the government will need to create new programs to assist all commercial real estate sectors.To view the full video from CNBC, click here.