NEWSLINE
CONSTRUCTION NEWS BULLETIN
NEWSLINE ABC Discusses Impacts of Obama’s Regulatory Expansion and Trump’s Regulatory Relief on Merit Shop Contractors On Sept.On 3, Sept. ABC sent 3, ABC a letter sent to a letter Rep. to Rep. labor agreement labor agreement policiespolicies that that of just 12 ofcontracts just 12 contracts exceeding exceeding James Comer, James the Comer, ranking the ranking membermemberare inconsistent are inconsistent across federal across federal $25 million $25(totaling million (totaling $1.25 billion) $1.25 billion) of the U.S. of the House U.S.of House Representatives of Representatives agencies agencies that were that procured were procured and builtand in the built in the Committee Committee on Oversight on Oversight and Reform, and Reform, 2. U.S. Department 2. U.S. Department of Laborofpolicies Labor policies United States Unitedsubject States subject to federal to federal explaining explaining the negative the negative impactsimpacts related to related the Davis-Bacon to the Davis-Bacon Act Act government-mandated government-mandated PLAs and PLAs and of the Obama of the administration’s Obama administration’s that stifle that competition stifle competition and impose and impose • PLA preferences • PLA preferences out of 1,681 out of 1,681 regulatory regulatory expansion expansion on ABC on ABC enormous enormous burdensburdens on contractor on contractorfederal contracts federal contracts (totaling(totaling $98.74 $98.74 membermember contractors, contractors, as well as as the well as theproductivity productivity and needlessly and needlessly billion) from billion) FY2009 from FY2009 throughthrough Trump administration’s Trump administration’s regulatory regulatory increaseincrease construction construction costs costs FY2019 FY2019 that were that subject were subject to the to the relief initiatives, relief initiatives, which have which helped have helped 3. DOL policies 3. DOL policies that serve that asserve barriers as barriers Obama administration’s Obama administration’s pro-PLApro-PLA to remove to remove burdensome burdensome barriers barriers to to to workforce to workforce development development Executive Executive Order 13502. Order 13502. job creation. job creation. • In contrast, • In contrast, the prevalence the prevalence of PLA of PLA ABC described ABC described how these how issues thesehave issues have mandates mandates on federally on federally assistedassisted “ABC member “ABC member contractors contractors applaudapplaud a chillinga effect chillingoneffect competition on competition and andprojectsprojects procured procured by certain by certain the Trump theadministration’s Trump administration’s impede job impede creation job creation and economic and economic blue states blueand states localities and localities are are substantial substantial deregulatory deregulatory efforts, efforts,recovery: recovery: wastingwasting billions of billions federal of tax federal tax which brought which brought to light cost to light andcost and dollars, dollars, slowingslowing the velocity the velocity of of burdensburdens these regulations these regulations put put 1. Government-mandated 1. Government-mandated PLAs PLAs new infrastructure new infrastructure and stifling and stifling on contractors,” on contractors,” said ABC said in ABC in job creation job creation and opportunity and opportunity for for the letter. the“During letter. “During the Obama the Obama • Anti-competitive • Anti-competitive and costly and costly all industry all industry professionals professionals during during administration, administration, ABC members ABC members government-mandated government-mandated PLAs onPLAs on America’s America’s economic economic recoveryrecovery from from sufferedsuffered from an from aggressive an aggressive and and federal and federal federally and federally assistedassisted the COVID-19 the COVID-19 pandemic. pandemic. burdensome burdensome rulemaking rulemaking agenda,agenda, contracts contracts drive updrive the cost up the of cost of where regulations where regulations were promulgated were promulgated taxpayer-funded taxpayer-funded construction construction hastily with hastily limited with stakeholder limited stakeholder projectsprojects by between by between 12% and12% 20%. and 20%. 2. DOL’s 2. Davis-Bacon DOL’s Davis-Bacon Act policies Act policies input and input questionable and questionable legal legal • Government-mandated • Government-mandated PLAs PLAs authority. authority. Many ofMany the Obama-era of the Obama-era unfairly unfairly discourage discourage merit shop merit shop • ABC members • ABC members frequently frequently cite cite regulations regulations were litigated, were litigated, which which contractors, contractors, which employ which employ more moreonerousonerous Davis-Bacon Davis-Bacon Act Act created created significant significant uncertainty uncertainty than 87.4% thanof87.4% the U.S. of the construction U.S. construction regulations regulations and compliance and compliance costs costs for ABC for member ABC member contractors contractors and and workforce, workforce, from bidding from bidding on the on the as reasons as reasons why theywhy do they not pursue do not pursue hampered hampered economic economic growth. growth. To To projects.projects. The negative The negative impact of impact ofpublic works publicprojects works projects subject subject to to promotepromote economic economic growth, growth, we mustwe must PLAs disproportionately PLAs disproportionately harms harms federal, federal, state or state local or prevailing local prevailing free industry free industry from those from regulations those regulations small businesses. small businesses. wage laws. wage laws. that create thatunnecessary create unnecessary and costly and costly • The needless • The needless paperwork, paperwork, waste waste• Regulations • Regulations implementing implementing DOL’s DOL’s bureaucratic bureaucratic layers.” layers.” and red and tapered associated tape associated with thewith the Wage and Wage Hour and Division Hour Division processprocess to to federal government’s federal government’s evaluation evaluation survey contractors survey contractors and determine and determine ABC’s most ABC’s pressing most pressing concerns concerns are areand procurement and procurement of federal of federal prevailing prevailing wage rates wage is inherently rates is inherently centeredcentered around three around areas: three areas: contracts contracts potentially potentially subject subject to to flawed and flawed failsand to produce fails to produce government-mandated government-mandated PLAs is PLAs is accurate, accurate, prevailing prevailing or timelyorrates. timely rates. 1. Government-mandated 1. Government-mandated project project especially especially frustrating. frustrating. ABC is aware ABC is aware • In recent • Inyears, recentunion years, wage union wage 20 | SEPTEMBER2020
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