Turning Back the Clock: DOL Proposes Previous Davis-Bacon Prevailing Wage Definition
April 19, 2022 —
David Chidlaw & Carina Novell - Sheppard Mullin Construction & Infrastructure Law BlogOn March 11, 2022, the Department of Labor (“DOL”) proposed reverting the definition of “prevailing wage” under the Davis-Bacon Act to a definition used over 40 years ago. According to the DOL, the proposal is meant to modernize the law and “reflect better the needs of workers in the construction industry and planned federal construction investments.”
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Brief History Lesson
The Davis-Bacon Act was enacted in 1931 and requires the payment of locally prevailing wages and fringe benefits on federal construction contracts. The law applies to workers on contracts in excess of $2,000 entered into by federal agencies and the District of Columbia for the construction, alteration, or repair of public buildings or public works.[2]
From the 1930s to the early 1980s, the DOL used the following three-step process to define prevailing wage:
- Any wage rate paid to a majority of workers.
- If there was no wage rate paid to a majority of workers, then the wage rate paid to the greatest number of workers, provided it was paid to at least 30 percent of workers (i.e., the “30 percent rule”).
- If the 30 percent rule was not met, the weighted average rate.
Reprinted courtesy of
David Chidlaw, Sheppard Mullin and
Carina Novell, Sheppard Mullin
Mr. Chidlaw may be contacted at dchidlaw@sheppardmullin.com
Ms. Novell may be contacted at cnovell@sheppardmullin.com
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7 Areas where Technology is Shifting the Construction Business
November 21, 2018 —
Eric Weisbrot – JW Surety BondsThe digital transformation of the last two decades has taken hold of the business environment in a powerful way. Companies in nearly all sectors are experiencing a significant shift in the way business is done, with a heavy focus on improved productivity, increase profitability, and enhanced product and service offerings. The construction industry has been historically slow to update its processes and business models in-line with other industries, but technology is currently making its long-awaited appearance in the sector. Construction professionals can embrace these new solutions to run more efficient businesses and keep a closer eye on profitability by reducing
common costs over time.
These are the seven major areas where technology is changing construction.
1 - Business Management
One of the most apparent shifts taking place in the construction industry thanks to technology is the advancement of business processes and systems behind the scenes. Construction managers and job site owners have countless
digital tools at their fingertips to help with managing all aspects of the business. This includes more efficient ways to manage material use and equipment inventory, logging subcontractor hours and pay, and maintaining reporting requirements from regulatory perspectives. Many software solutions integrate with older, legacy systems, making this change an easy one for construction businesses across the board.
2 – Jobsite Productivity
Another area of transformation in construction is productivity on each job site. Technology has offered job owners and general contractors more efficient methods to keep track of project timelines as well as subcontractor progress from start to finish. The technology advancements in this arena come in the form of wearable devices that track work performed, as well as mobile devices that help keep the often mundane tasks necessary for a project’s success up to date and completed on time.
3 – Worker Safety
Although wearables are being utilized in several different ways in the construction business, these devices are making a significant difference in the safety of workers. From smart helmets to digitally enhanced eyewear, workers are alerted to potential hazards on the job that they otherwise could not identify. Similarly, augmented and virtual reality solutions are being used to train workers before they arrive at a job, preparing them for safety concerns well in advance. Even though most licensed and
bonded construction workers have appropriate training throughout their careers, the addition of these resources has the ability to further reduce the risks often associated with construction work.
4 – Surveying and Monitoring
Unmanned aerial vehicles, also known as
drones, are being used throughout construction. These digital tools are equipped with cameras to offer a bird’s eye view of a construction site to help with surveying and identifying potential hazards for workers. Drones also help with inspections throughout a project’s progression, offering some reduction in cost and improving efficiencies.
5 – Improved Materials
Technology is also playing a role in the materials used on job sites. The addition of 3D printing has proven beneficial for construction companies, as concrete composites, plastics, and other materials are being printed and used to create structures on-site. This offers a more cost-effective and accurate way to complete a project.
6 – Self-operating Equipment
Some technology firms are making waves in the construction industry because they are currently developing and implementing
autonomous equipment solutions. Heavy machinery, like excavators, bricklayers, and bulldozers, are already being used on construction sites to help ease the burden of the labor shortage in the industry. While these machines are not yet mainstream, the benefits they offer mean they are likely to become a staple in construction in the years to come.
7 – Big Data
Finally, technology is shifting the construction business by way of big data analytics. With the detailed information from new software solutions, wearable tech, and drones, construction site managers have more data than they have ever had. This influx of information offers a way to analyze job site progress, budgets, timelines, and efficiency for companies large and small.
Author:
Eric Weisbrot is the Chief Marketing Officer of
JW Surety Bonds. With years of experience in the surety industry under several different roles within the company, he is also a contributing author to the surety bond blog.
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What Will the 2024 Construction Economy Look Like?
January 02, 2024 —
Grace Calengor - Construction ExecutiveCE just wrapped its "2024 Economic Update and Forecast" webinar, which revealed some interesting insights for 2023 and projections for next year. Anirban Basu, chief economist for ABC and CEO of Sage Policy Group, began his presentation by stating auspiciously: “The economy has been much stronger along more dimensions than I expected.”
Polling: good news for the supply chain
Not only did Basu's own research reveal strong construction growth in a majority of sectors, a decent number of construction job openings and wage increases, as well as supply-chain improvement and a stagnating federal rate—but webinar attendees who answered Basu's polling questions felt similarly.
Reprinted courtesy of
Grace Calengor, Construction Executive, a publication of Associated Builders and Contractors. All rights reserved.
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As Recovery Continues, Home Improvement Stores Make Sales
August 27, 2013 —
CDJ STAFFNeed another sign of the housing recovery? Lowe’s stock price is up. Bloomberg News reports that the home-improvement retailer rose by 88 cents a share in the last quarter. Analysts had predicted gains of 79 cents a share, and the same quarter last year saw profits of 64 cents a share. The increase in profits come from more purchases and higher spending per purchase. While Lowe’s negotiated some better prices with vendors and dropped some items that weren’t selling, none of the profits came from staff reduction; the retailer actually increased staffing.
Home Depot, the largest such chain (Lowe’s is number 2), also saw profits that exceeded analysts’ projections. They, too, have decided to focus on assisting customers. Their increase in profits was attributed to greater spending by contractors and homeowners.
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Client Alert: California’s Unfair Competition Law (B&P §17200) Preempted by Federal Workplace Safety Law
September 24, 2014 —
R. Bryan Martin, Yvette Davis, & Kristian Moriarty - Haight Brown & Bonesteel LLPIn Solus Industrial Innovations LLC v. Superior Court (No. G047661, filed 9/22/2014) (“Solus”) the California Court of Appeal, Fourth Appellate District, held California’s Unfair Competition Law (Business & Professions Code §17200) is preempted by the federal Occupational Safety and Health Act of 1970 (“Fed/OSHA”) because the Unfair Competition law, as approved by the United States Secretary of Labor, does not include any provision for civil enforcement of workplace safety standards by a state prosecutor through a complaint for penalties.
Solus Industrial Innovations, LLC (“Solus”) is a plastics manufacturer. In 2007, Solus installed a residential water heater at its commercial facility in Orange County. The water heater exploded in March 2009, killing two workers. California’s Division of Occupational Safety and Health (“Cal/OSHA”) investigated and determined the explosion was caused by a failed safety valve and lack of any proper safety feature on the water heater. Cal/OSHA charged Solus with five violations of Title 8 of the California Code of Regulations. Because deaths were involved, Cal/OSHA forwarded the results of its investigation to the Orange County District Attorney.
In March 2012, the Orange County District Attorney filed criminal charges against Solus’ plant manager and maintenance supervisor. The District Attorney also filed a civil action against Solus, including two causes of action for violation of California Business & Professions Code §17200 – the Unfair Competition Law (“UCL”). The action sought civil penalties under the UCL in the amount of $2,500 per day, per employee, from November 29, 2007 through March 19, 2009.
Reprinted courtesy of Haight Brown & Bonesteel LLP attorneys
R. Bryan Martin,
Yvette Davis and
Kristian Moriarty
Mr. Martin may be contacted at bmartin@hbblaw.com
Ms. Davis may be contacted at ydavis@hbblaw.com
Mr. Moriarty may be contacted at kmoriarty@hbblaw.com
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Unqualified Threat to Picket a Neutral is Unfair Labor Practice
January 08, 2019 —
Wally Zimolong - Supplemental ConditionsOn December 27, 2018, the National Labor Relations Board enforced a decades old policy that a union’s unqualified threat to picket a neutral employer at a “common situs” a/k/a a construction site is a violation of the National Labor Relations Act.
Background
The case involved area standards picketing by the IBEW of a project owned by the Las Vegas Convention and Visitors Authority (LVCVA). The IBEW sent a letter to various affiliated unions who were working on the project advising them of its intent to engage in area standards picketing at the project directed to the merit shop electrical subcontractor performing work there. The IBEW also sent a copy of the letter to the LVCVA.
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Wally Zimolong, Zimolong LLCMr. Zimolong may be contacted at
wally@zimolonglaw.com
Construction Mezzanine Financing
March 29, 2017 —
Tim Davis & Steven Coury - White and Williams LLPConstruction mezzanine lending is on the rise and more development deals are getting done with a capital stack that includes mezzanine debt in addition to the traditional components of sponsor equity and senior mortgage debt. Below are important issues and concepts to bear in mind when structuring the financing of a construction project that includes a mezzanine debt component.
Funding Sequence
Funding Sequence
When will the proceeds of the mezzanine loan be advanced? In some instances, the mezzanine loan proceeds will be advanced only after all of the borrower’s equity has been contributed to the construction of the project. In other instances, the borrower’s equity and the mezzanine loan proceeds go in either pari passu or simultaneously at another ratio. If the equity is not entirely contributed in advance, the mezzanine lender may require that the uncontributed equity be held by the mezzanine lender or held in a pledged account. The mezzanine lender may also further mitigate the risk of non-funding of the equity by requiring an equity funding guaranty (as discussed below).
Additionally, when will the mezzanine loan proceeds be advanced in relation to the senior mortgage loan proceeds? Will the entire mezzanine loan be advanced prior to any senior mortgage loan advance or will they be advanced pari passu? Depending on the business deal, the mezzanine loan agreement will need to reflect how and when the equity, the mezzanine debt, and the mortgage debt will be advanced.
Reprinted courtesy of
Tim Davis, White and Williams LLP and
Steven Coury, White and Williams LLP
Mr. Davis may be contacted at davist@whiteandwilliams.com
Mr. Coury may be contacted at courys@whiteandwilliams.com
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Will Colorado Pass a Construction Defect Reform Bill in 2016?
December 17, 2015 —
Beverley BevenFlorez-CDJ STAFFAccording to blogger Jill Jamieson-Nichols of the Colorado Real Estate Journal, another construction defects bill may be debated in Colorado next year. Representative Dan Pabon told Jamieson-Nichols that “the answer lies in ‘thinking about the insurance piece’ so condominium developers can afford insurance against litigation that might arise.” She also stated that the city of Denver is considering ways to increase funding to increase affordable housing in the area.
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