flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

House democrats' coronavirus measure provides some relief for contractors, but lacks other steps needed to help construction

Market Data

House democrats' coronavirus measure provides some relief for contractors, but lacks other steps needed to help construction

Construction official says new highway funding, employee retention credits and pension relief will help, but lack of safe harbor measure, Eextension of unemployment bonus will undermine recovery.


By AGC | May 13, 2020

Courtesy Pixabay

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 | Aug 6, 2020

6 must reads for the AEC industry today: August 6, 2020

Oklahoma State's new North Academic Building and can smart buildings outsmart coronavirus?

Market Data | Aug 5, 2020

6 must reads for the AEC industry today: August 5, 2020

San Jose's new tallest tower and Virginia is the first state to adopt COVID-19 worker safety rules.

Market Data | Aug 4, 2020

7 must reads for the AEC industry today: August 4, 2020

Construction spending decreases for fourth consecutive month and 100% affordable housing development breaks ground in Mountain View.

Market Data | Aug 3, 2020

Construction spending decreases for fourth consecutive month in June

Association officials warn further contraction is likely unless federal government enacts prompt, major investment in infrastructure as state and local governments face deficits.

Market Data | Aug 3, 2020

6 must reads for the AEC industry today: August 3, 2020

The future is a number game for retail and restaurants and 5 reasons universities are renovating student housing.

Market Data | Jul 31, 2020

5 must reads for the AEC industry today: July 31, 2020

Vegas's newest resort and casino is packed with contactless technology and Mariott, Hilton, and IHG dominate the U.S. hotel construction pipeline.

Market Data | Jul 30, 2020

Marriott, Hilton, and IHG continue to dominate the U.S. hotel construction pipeline at Q2’20 close

Hilton’s Home2 Suites and IHG’s Holiday Inn Express continue to be the most prominent brands in the U.S. pipeline.

Market Data | Jul 30, 2020

7 must reads for the AEC industry today: July 30, 2020

Millennium Tower finally has a fix and construction costs decrease for the first time in 10 years.

Market Data | Jul 29, 2020

62% of metros shed construction jobs from June 2019 to June 2020 as Association calls for new infrastructure funding, other relief steps

New York City and Brockton-Bridgewater-Easton, Mass. have worst 12-month losses, while Austin and Walla Walla, Wash. top job gainers.

Market Data | Jul 29, 2020

6 must reads for the AEC industry today: July 29, 2020

The world's first net-zero airport and California utility adopts climate emergency declaration.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021