News Briefs: March 2020

by | Mar 1, 2020

NYC expands use of design-build, P3 agreement released by ConsensusDocs, NDAA passes congress and more.

NYC Governor Allows Expanded Use of Design-Build

New York Gov. Andrew Cuomo recently signed the New York City Public Works Investment Act (Assembly Bill 7636) into law, a new policy allowing the expanded use of the design-build alternative delivery method.

The policy applies to projects under the New York City Department of Design and Construction, Department of Environmental Protection, Department of Transportation and Department of Parks and Recreation, as well as the city’s Health and Hospitals Corporation, School Construction Authority and Housing Authority. Eligible projects must have a cost in excess of $10 million, with a caveat of a $1.2 million cost threshold for Department of Parks and Recreation projects and certain other pedestrian and security infrastructure improvements and cultural renovations. Most notably, all eligible projects must be performed under PLAs, pursuant to existing union collective bargaining agreements.

Supporters of the new law point to alternative delivery methods, such as design-build, as a successful way to save money and streamline project timelines. Opponents cite New York’s specific requirement of the use of PLAs as a driver of cost increases due to a reduced bidding pool as well as work jurisdiction rules contained in the collective bargaining agreements, which offset any cost savings that could be achieved through design-build.

Building Codes and Floodplain Regs Work Congruously in FEMA Guide

FEMA, in tandem with the International Code Council, has released the fifth edition of “Reducing Flood Losses Through the International Codes® Coordinating Building Codes and Floodplain Management Regulations.”

Published in October 2019, the guide details the integration of I-Codes into floodplain management regulatory processes related to structures, buildings and other development to satisfy the requirements for participation in the National Flood Insurance Program.

Coordinating building codes with floodplain management regulations will reduce duplication of efforts and improve the review, permitting and enforcement processes, among other benefits.

P3 Agreement Released by ConsensusDocs

A coalition representing more than 300,000 stakeholders, ConsensusDocs is setting the industry standard with the publication of a new public-private partnership (P3) agreement. The 900 Standard P3 Agreement and General Conditions provides a fair, off-the-shelf solution that can be modified to meet specific project needs, lowering transactional costs.

The P3 document creates a baseline in order to mitigate risk for small- and medium-sized projects and is part of ConsensucDocs’ P3 900-Series. Visit ConsensusDocs for more information.

NDAA Passes Congress

The National Defense Authorization Act (NDAA) for 2020, which authorizes funding for the Department of Defense and other national security programs, contains several provisions that have an impact on contractors and apprenticeship programs in the United States. The legislation passed the House on Dec. 11 and is expected to be enacted into law.

Included in the subsequently released conference report is a requirement that the U.S. comptroller general conduct a report on DoD contractor violations under either the Occupational Safety and Health Act of 1970 or the Fair Labor Standards Act of 1938; a directive to conduct a study on the contracted practices of the U.S. Army Corps of Engineers that specifically focuses on how the Corps complies with and enforces the Davis-Bacon Act; and a requirement that contractors establish goals for apprentices to consist of 20% of the total workforce employed on a contract.

“Qualified apprentice” is defined as an employee participating in a Department of Labor registered apprenticeship or certain high-quality industry-recognized apprenticeship programs.

Economic Slowdown Drags on U.S. Cities

The United States’ top 10 cities’ growth performance is set to drag through 2023, says an analysis from Oxford Economics. The Global Cities report cites that top areas, like San Jose, Dallas, San Francisco, Boston and Atlanta are all forecasted to see weaker GDP growth compared with recent years’ intensive expansion.

This is, however, not necessarily a projection of doom. San Francisco will remain one of the nation’s fastest growing cities. Although its growth rate will decrease from its current rate of 5.3%, it is projected to continue at a healthy growth rate of 2.7% through 2023. Per the report, 76 of the top 98 North American cities can expect a similar slowdown.

Author

  • Construction Executive

    Construction Executive, an award-winning magazine published by Associated Builders and Contractors, is the leading source for news, market developments and business issues impacting the construction industry. CE helps its more than 50,000 print readers understand and manage risk, technology, economics, legal challenges and more to run more profitable and productive businesses.

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