The chief executive officer of the Associated General Contractors of America, Stephen E. Sandherr, issued the following statement in reaction to release today of House Democrats’ Proposed Coronavirus Recovery Measure:
“It is encouraging to see House Democrats moving quickly on legislation intended to help the economy recover from the coronavirus. Their proposal includes measures that will help construction firms that have been hard-hit by declining demand and uncertainty about future market conditions. But the proposal’s authors missed an opportunity to address some of the most significant challenges facing the industry.
“On the positive side, the measure includes some needed relief for state highway programs that have been hammered by declining gas tax revenue amid broad economic lockdown measures. The measure also includes an expansion of the employee retention tax credit that will benefit construction firms that have worked to retain employees. It authorizes composite retirement plans, which hold great potential to address the challenges facing multiemployer retirement plans in which many construction firms participate and provides other needed pension relief. And it includes measures to help construction firms working on federal projects cope with schedule delays and other impacts related to the coronavirus.
“The measure, however, fails to include any safe harbor language to protect firms that are safeguarding workers and the public from the coronavirus from limitless litigation. Meanwhile, the proposed repeal of the net operating loss carryback provision will punish firms, especially family-owned businesses, that suffered losses of $250,000 or more this year. This will make it even harder for these firms to retain staff. And the proposed expansion of the unemployment supplement through January 31 will make it more challenging for firms to rehire employees once demand begins to rebound.
“We appreciate that this measure advances a much-needed debate about the best way to re-start the economy. That is why we will continue to work with members of both parties to craft measures, including liability protections, new infrastructure investments and pension relief, that will help the construction industry recover and rebuild.”
Related Stories
Market Data | Oct 24, 2016
New construction starts in 2017 to increase 5% to $713 billion
Dodge Outlook Report predicts moderate growth for most project types – single family housing, commercial and institutional building, and public works, while multifamily housing levels off and electric utilities/gas plants decline.
High-rise Construction | Oct 21, 2016
The world’s 100 tallest buildings: Which architects have designed the most?
Two firms stand well above the others when it comes to the number of tall buildings they have designed.
Market Data | Oct 19, 2016
Architecture Billings Index slips consecutive months for first time since 2012
“This recent backslide should act as a warning signal,” said AIA Chief Economist, Kermit Baker.
Market Data | Oct 11, 2016
Building design revenue topped $28 billion in 2015
Growing profitability at architecture firms has led to reinvestment and expansion
Market Data | Oct 4, 2016
Nonresidential spending slips in August
Public sector spending is declining faster than the private sector.
Industry Research | Oct 3, 2016
Structure Tone survey shows cost is still a major barrier to building green
Climate change, resilience and wellness are also growing concerns.
Industry Research | Sep 27, 2016
Sterling Risk Sentiment Index indicates risk exposure perception remains stable in construction industry
Nearly half (45%) of those polled say election year uncertainty has a negative effect on risk perception in the construction market.
Market Data | Sep 22, 2016
Architecture Billings Index slips, overall outlook remains positive
Business conditions are slumping in the Northeast.
Market Data | Sep 20, 2016
Backlog skyrockets for largest firms during second quarter, but falls to 8.5 months overall
While a handful of commercial construction segments continue to be associated with expanding volumes, for the most part, the average contractor is no longer getting busier, says ABC Chief Economist Anirban Basu.
Designers | Sep 13, 2016
5 trends propelling a new era of food halls
Food halls have not only become an economical solution for restauranteurs and chefs experiencing skyrocketing retail prices and rents in large cities, but they also tap into our increased interest in gourmet locally sourced food, writes Gensler's Toshi Kasai.
