Quality People. Quality Projects. Associated General Contractors of Ohio’s Government Affairs Update provides information about AGC’s advocacy efforts and government related matters of interest to the commercial building industry. It is e-mailed to AGC of Ohio members and available online at www.agcohio.com/advocacy.html. Direct questions and comments to Andrea Ashley, Vice President of Government Relations: andrea@agcohio.com or (614) 486-6446. April 28, 2014 CONTRIBUTE TO AGC ACTION! Last week AGC of Ohio began the fundraising campaign for AGC Action, AGC of Ohio’s political action committee. AGC Action pools voluntary contributions from individuals in the construction industry to make political contributions to candidates for legislative and statewide offices. PAC funds help AGC build stronger relationships at the statehouse and give AGC the opportunity to reinforce the commercial building industry’s message with key decision makers. It supports legislators that support the industry and construction employers. To contribute to AGC Action, send your personal or PAC check to AGC Action, 1755 Northwest Blvd, Columbus, OH 43212. PAC contributions are not tax deductible, and corporate checks cannot be accepted. WHAT HAPPENED TO MUNICIPAL TAX REFORM? Over the past month, many of Ohio’s newspapers have ran articles or editorials highlighting municipal tax reform efforts and some of the challenges associated with it. AGC of Ohio is a strong supporter of HB 5, the legislation that would create a more uniform municipal tax structure across Ohio. Senate leaders have indicated they do not plan to take up HB 5 until after the November election, although some preliminary meetings and hearings may take place when the legislature returns from spring break in May. Many of the municipalities in opposition are spreading misinformation, putting pressure on state legislators and even attempting to make it a re-election issue in some cases. As you meet or correspond with your state senators, educate them about how Ohio’s municipal tax structure impacts your business and the importance of municipal tax reform. Learn more about municipal tax reform here. ODNR TO INVEST $88.5 MILLION IN CAPITAL IMPROVEMENTS On April 23, the Ohio Department of Natural Resources (ODNR) announced that the state will invest more than $88.5 million in capital improvements at Ohio State Parks over the next two years. The funding will be used to improve state park facilities and lodges. Additionally, bathrooms and campsites will be updated or replaced through much of the parks system. ODNR has been working to identify the most immediate needs and will continue to announce projects throughout the process. A website was launched to allow park users to submit their ideas and assist ODNR in identifying needed improvements. Page 1 of 4 Government Affairs Update – Apr 28, 2014 U.S. EPA TOP 25 LIST OF CITIES WITH MOST ENERGY STAR BUILDINGS Cincinnati & Columbus Included in the Rankings The Environmental Protection Agency (EPA) announced last week its sixth annual list of the top 25 U.S. metropolitan areas with the most Energy Star certified buildings. The cities on this list demonstrate the economic and environmental benefits achieved by facility owners and managers when they apply a proven approach to energy efficiency to their buildings. Two Ohio cities are included on the list: Cincinnati ranks 19th and Columbus 21st. The city links provide an area map of Energy Star buildings and accompanying list to reference. According to the Agency’s release, energy use in commercial buildings accounts for 17 percent of U.S. greenhouse gas emissions at a cost of more than $100 billion per year. Energy Star certified office buildings cost $0.50 less per square foot to operate than average office buildings, and use nearly two times less energy per square foot than average office buildings. The data also show that more than 23,000 buildings across America earned EPA’s Energy Star certification by the end of 2013. Commercial buildings that earn EPA’s Energy Star must perform in the top 25 percent of similar buildings nationwide and must be independently verified by a licensed professional engineer or a registered architect. Energy Star certified buildings use an average of 35 percent less energy and are responsible for 35 percent less carbon dioxide emissions than typical buildings. View the complete EPA press release. UPCOMING AGC EVENTS AGC of Ohio Safety Meeting May 2, 9:30 a.m.-noon; AGC office (Columbus) Join other AGC members and safety professionals for a discussion about a variety of current safety issues and OSHA enforcement and regulatory activity. Additionally, a guest speaker will provide an update on some new and innovative safety products, and lunch will be provided to those participating. The meeting is open to AGC of Ohio members and free of charge. Direct questions or RSVP to Andrea Ashley at AGC of Ohio andrea@agcohio.com or ph (614) 486-6446. AGC of Ohio Golf Outing May 16, 10:00 a.m. Shotgun Start, Bent Tree Golf Club (Sunbury) Enjoy a day on the golf course with fellow AGC members and support the AGC of Ohio Education Foundation Scholarship Fund! The reservation form with more information is available here and due this Friday (May 2). Sponsorship opportunities are also available. Direct questions to Melissa Ottinger at (614) 486-6446 or melissa@agcohio.com. AGC Federal Contractors Conference June 10-12, Washington D.C. With the fiscal year 2014 budget in place and the president’s fiscal year 2015 budget released, federal agencies have a better understanding of the projects coming down the pipe. Many top federal agency leaders and their colleagues will discuss their plans at the 2014 AGC Federal Contractors Conference held June 10-12 at the Mayflower Hotel in Washington, D.C. Registration Open for 2014 AGC IT Forum Conference July 31-August 1, Chicago. Early bird rates available through June 30th. The 6th Annual AGC IT Forum Conference is now open for registration. Registration and hotel information are available here: http://meetings.agc.org/it_conference/. In the coming weeks, updates and announcements will be posted on the web and via social media. Be sure to join the IT Forum LinkedIn Group, AGC IT Forum, and sign up to follow AGC IT on Twitter. Page 2 of 4 Government Affairs Update – Apr 28, 2014 OHIO FACILITIES CONSTRUCTION COMMISSION NEWS From OFCC Connector, April 2014 Ohio Energy Services Coalition The Ohio Facilities Construction Commission has joined a partnership with a number of private sector firms to encourage the use of energy performance contracting. The inaugural meeting of the Ohio Chapter of the Energy Services Coalition was held on January 29, 2014, with more than 50 persons in attendance. A second meeting was held on March 14, 2014. The Energy Services Coalition (ESC) is a public/private partnership promoting the benefits of, providing education on, and serving as an advocate for the widespread use of energy performance contracting in public and private facilities. The ESC provides a unique forum in which all stakeholders can work together to address and overcome any barriers which are limiting the effective use of energy services performance contracting. Four (4) committees were formed: 1. 2. 3. 4. Membership - promote and seek new members for the coalition Outreach - promote the chapter and performance contracting Workshops - plan training and educational workshops on performance contracting State Documents - Edit or create documents that define procedures for submitting and reporting performance contracting projects. The next meeting will be held on May 21. Membership is open to all parties who have an interest in energy services performance contracting. For more information, please go to the ESC website at http://oh.energyservicescoalition.org. Contact information for co-chairs of the Ohio chapter is included on that website. Construction documents update In January, the OFCC began rolling out its 2014 edition of the Standard Requirements for Public Facility Construction. To date, OFCC has released new documents for the Construction Manager at Risk, General Contracting and Design-Build delivery methods. This month, the Multiple Prime and Construction Manager as Agent documents will be posted. For a period of time, we will post the current (2012 Edition) documents, as well as the updated documents, to accommodate projects that are currently underway, with terms and conditions that are connected from the design stage and into the construction phase. In February, OFCC hosted a webinar outlining the changes to these documents. If you missed the webinar, you can view the recording on our website at http://ofcc.ohio.gov (click on Webinar Archive). The PowerPoint presentation and a question and answer document for this webinar is also available for download. To be notified when new documents are posted to the OFCC website, go to our home page at the web link above and click on "Join Our Mailing List." Related to the updated OFCC contract documents, a workgroup of large and small, union and open shop AGC members met multiple times with OFCC staff and recommended changes to the documents, many of which were adopted by the agency. AGC of Ohio and the workgroup continue to educate OFCC staff about challenges related to the implementation of construction reform and are working with the agency to address concerns with the design build documents. Page 3 of 4 Government Affairs Update – Apr 28, 2014 NATIONAL NEWS… Information courtesy of AGC of America "Good Foundation for Construction Recovery," Economists Say The country's economy has stabilized, and this has created a strong environment for commercial building lending. Ken Simonson, chief economist at the AGC of America forecasts a 6% to 10% increase in nonresidential construction spending each year until 2017. Simonson participated in a webinar entitled “2014: Emerging Opportunities for Construction” on April 17 with AIA chief economist Kermit Baker and Bernard Markstein of Reed Construction Data. SmartBrief editor Jennifer Hicks reports on what the three economists see for the rest of this year and moving forward – view her blog. ConsensusDocs Releases New Constructor & Consultant Agreements ConsensusDocs has released the new ConsensusDocs 746 Constructor & Geotechnical Consultant Agreement and the 747 Constructor & Consultant Agreement. These new contracts provide an industry standard contract for a constructor who wants to retain a consultant on a construction project. Similar to the ConsensusDocs 246 and 247 (Owner and Consultant agreements), these constructor and consultant agreements were crafted to provide a solid contractual base for a variety of consulting arrangements, including interior design, inspection, industrial hygiene, retrofits, procurement and many others. The agreements further the ConsensusDocs Coalition's goals of writing fairer contracts to facilitate better project results with a project-first philosophy and less litigation. Learn more: www.ConsensusDocs.org. ABI Shows Slight Improvement After starting the year on a positive note, there was another minor increase in the Architecture Billings Index (ABI) last month. As a leading economic indicator of construction activity, the ABI reflects the approximate nine to twelve month lead time between architecture billings and construction spending. The AIA reported the February ABI score was 50.7, up slightly from a mark of 50.4 in January. This score reflects an increase in design services (any score above 50 indicates an increase in billings). The new projects inquiry index was 56.8, down from the reading of 58.5 the previous month. Read more. March Construction Employment Increased in 38 States from a Year Ago, Half of Country in Latest Month Construction firms added jobs in 38 states over the past 12 months, although job gains leveled off between February and March, according to an April 18 AGC of America analysis of Labor Department data. Association officials said the ongoing year-over-year pickup points to the urgency of revitalizing and initiating programs to encourage workers and graduating students to get construction careers. “The widespread gains in employment from a year ago are encouraging, given the tough winter many states endured right through March,” said Ken Simonson, the association’s chief economist. “The neverending winter of 2014 may account for the dip in the number of states that added construction jobs in the latest month, but it is also possible that single-family homebuilders are not adding workers as some forecasters expected.” Read the full press release here. AGC Advocacy – Top Policy Priorities; Congressional Voting Records Many AGC members have been receiving fundraising request from their Congressional delegation, and some may even have the opportunity to meet with them. As you do so, consider reminding them about AGC of America’s top policy priorities and understand their voting records about issues of importance to the construction employers. For more about AGC of America advocacy, go to: www.agc.org/cs/advocacy. Additionally, AGC of America has a federal PAC that supports federal candidates. Learn more here or contact David Ashinoff, Director of AGC PAC & Political Advocacy: ashinoffd@agc.org or (202) 547-5013. Page 4 of 4