Baltimore and Virginia Contemplating PLA Mandate Ordinances
A bill introduced in the Baltimore City Council by Councilmember Shannon Sneed and Council President Brandon Scott would make sweeping changes to the City of Baltimore’s procurement laws. The proposed ordinance, File 20-0488, would impose government-mandated project labor agreements on any construction contract valued at $25 million or more. The same mandate would also apply on any long-term capital improvement plan that involves construction projects at multiple locations if the total value of the project is valued at more than $15 million.
This is not the first instance where the Baltimore City Council has debated a PLA mandate on publicly financed construction projects in the city. In 2010, the Council proposed a similar ordinance that would have required PLAs on projects valued at $5 million or more. That legislation never made it into law after widespread pushback, including opposition from the Baltimore city solicitor and minority contractors that spoke out against the discriminatory nature of PLA mandates. If passed and signed, the law would go into effect 30 days after enactment.
In Virginia, legislation introduced by Sen. Richard L. Saslaw (SB 182) and Del. Alfonso Lopez (HB 358) would eliminate the state’s Fair and Open Competition statute restricting government-mandated PLAs, which would allow state and local governments to mandate PLAs on public works construction projects. In addition, legislation introduced by Sen. Saslaw (SB 8) and Del. Jennifer Carroll Foy (HB 833) would allow prevailing wage requirements on state and local construction projects at nonmarket rates set by a flawed wage determination process conducted by the U.S. Department of Labor, via the 1931 Davis-Bacon Act.
2021 International Plumbing and Mechanical Codes Available for Pre-Order
The International Code Council (ICC) has announced the release of International Plumbing Code (IPC) and International Mechanical Code (IMC) for 2021.
IPC additions/updates include:
- Multiple-user toilet facilities to serve all genders are now permitted.
- Two new methods for relining/rehabilitation of existing sewers have been added.
- Accommodations for mounted rooftop solar panels over vent terminals have been added.
- CSA B805/ICC 805 Rainwater Harvesting Systems is now allowed as an alternative design method.
IMC additions/updates include:
- Clothes dryer exhaust terminals are now required to be at least three feet from any opening into a building.
- Polyurethane spray-applied foam on the exterior of ducts in attics and crawl spaces is now required to meet specific smoke and flame index limits.
- Fire and smoke dampers must now be provided with approved access for inspection and maintenance.
- Refrigerant tables now include new refrigerants.
These codes are revised on a three-year cycle and draw from hundreds of experts nationwide in order to enhance safety, as well as save time and resources. In 2019, a study conducted by the ICC found that counties using IPC saved $38 billion in construction costs over a 12-year period. For more information, visit shop.iccsafe.org.
NCCER Updates Sheet Metal, Launches Green Environment Course
NCCER’s four-level sheet metal curriculum has been updated for the first time since 2009. Improvements include information regarding computers and software used for sheet metal fabrication; estimating and construction documentation software; and 3D scanning. In addition, specific training has been added to certain courses, and a commercial drawing package is now offered to the second course level for free.
Experts at ABC chapters collaborated to develop this updated curriculum, as well as a new module, “Your Role in the Green Environment,” which provides fundamental instruction on green construction practices and rating systems. Visit nccer.org/curricula to learn more.
Commercial, Multifamily Construction Starts in Top 20 Metros Up 11% Year-Over-Year, Says Dodge
The value of U.S. commercial and multifamily construction starts was $227.5 billion in 2019, up 1% from 2018, according to Dodge Data and Analytics. However, the value of commercial and multifamily starts in the top 20 metros increased 11% to $139.6 billion.
When breaking down year-over-year commercial and multifamily activity, commercial starts increased 7% to $132.3 billion. The value of multifamily starts, however, dropped 5% to $95.2 billion.
The commercial category, according to Dodge’s chief economist, continued to benefit from strong demand in 2019, but, after nine consecutive years of growth, it should see fewer large projects because of an expected slowing in the economy. The multifamily category, as indicated by the overall national decline, is past its peak and a decline in the value of those starts should affect more metros in the coming year. Dodge says.
Construction Rental Revenue to Increase Through 2023
Equipment and event rentals are forecasted to generate even more growth in 2020 than in 2019, says the American Rental Association. Companies are expected to generate up to $58.1 billion in revenue in the United States, an increase of 3.8%. Of this amount, construction and industrial equipment is expected to reach $40.1 billion this year.
This pattern is expected to continue, with total revenues increasing by 4.1% in 2021, 4.2% in 2022 and 3.5% in 2023.
National Rent Rates Rise
Although national rents have increased going into 2020 (by 3% year-over-year), growth is slowing down, according to a National Rent Report by RENTCafé. The report, which covers 260 cities across the United States divided by large, mid-sized and small markets, notes that the average rent climbed to $1,463 in January 2020—$43 more than the previous year.
Significant findings include that the largest rent hikes were found in Phoenix (8.3%), Las Vegas (5.9%) and Washington, D.C. (4.3%). Nevertheless, Manhattan remains the most expensive city to rent in, with apartment prices increasing 1.9% to $4,210. The lowest rents can be found in Wichita, Kansas, for $662 per month.
RENTCafé’s experts note that this hike will continue and is to be expected, due to issues of high demand and lack of affordable housing that have cropped up over the last decade.
Massachusetts to Fund Vocational Courses, Increase Skilled Workers
The Bay State kicked off the new year by launching the Career Technical Initiative, a training program designed to upskill 20,000 trades workers over the next four years. Gov. Baker joined a host of other administration officials, including Lt. Gov. Polito and other local leaders, to set in motion this initiative, which will operate three teaching shifts per day at vocational schools.
The program, developed by the Governor’s Workforce Skills Cabinet, is expected to expand following a multi-year investment in vocational school enrollment and evening courses by the Baker-Polito administration—to the tune of $15 million in FY 2021.
NLRB Redefines “Joint Employer”
The National Labor Relations Board has issued a final rule in the Federal Register regarding the definition of a “joint employer” under the National Labor Relations Standards Act. The rule, which will become effective on April 27, 2020, states that a company is only considered a joint employer of another company’s employees if it exercises “substantial direct and immediate control” over employee wages, benefits, work hours, or other “essential terms and conditions of employment.”
This clarity was necessary and critical because once found to be joint employers, companies must bargain with unions, share liability for each other’s unfair labor practices and are mutually subjected to union actions, such as picketing.
The rule overturns Browning v Ferris Industries of California (2015), a case that directly affected relationships between general contractors and subcontractors by declaring joint employer status even with “limited and routine” control, thereby reducing the risk that a stakeholder will be found to be a joint employer.
ABC submitted comments in support of the rule in 2019, as did the ABC-led Coalition for a Democratic Workplace.
