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Over the weekend, the New Orleans Times Picayune had some promising news for contractors in the area, and even out-of state laborers and contractors:

Over the next several months, the Army Corps of Engineers plans to advertise three dozen construction contracts that could cost upwards of $3 billion -- more than it has spent since Hurricane Katrina...

So vast and compressed is the construction schedule that corps representatives have advised contractors to consider importing out-of-state labor, lining up temporary housing for employees and working around the clock.

This is certainly welcome news for Louisiana contractors, who are constantly reading grim economic forecasts for the rest of the nation.   Thus far, the post-Katrina market has seemingly insulated the region from economic peril, as New Orleans and Baton Rouge have maintained robust construction markets throughout the downturn.

If your company is going to bid for a piece of the Corps spending, be sure to enter into contracts carefully and protect your company's right to payment throughout the job.

Here are two important things to keep in mind:

Contracting:  Contacting an attorney - like Wolfe Law Group - to review your contracts can pay dividends on the project.   A simple contract review can cost as little as $1000.00, but give your company a better understanding of its rights and obligations under the agreement, and sometimes even point out provisions that can be altered to your company's benefit.

Just because a contract is put before your company, doesn't mean it needs to be signed in that form.  Frequently, contractors and project owners are willing to negotiate common terms, and simple changes to critical provisions can later save your company thousands.

Read more about construction contracts on our blog here.

Liens:   Since they will be funded by the Corps, these projects are all likely to be public.   However, just because a project is public doesn't mean your company is without "lien" rights.   Louisiana's Public Works Act allows unpaid companies to file "Statements of Claims" that protect a company's right to get paid...and since federal and state projects are nearly always bonded, the Statements of Claims can be a very powerful and effective collections tool.

However, filing successfully under the Public Works Act begins before you step foot on the job-site.  

Learn more about public liens and the Public Works Act here.

And for more information about the Corps projects and legal representation from Wolfe Law Group on these types of projects, contact us today.

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Katrina's Silver-Lining.  Three words New Orleanians didn't ever expect to hear, yet uttered this Sunday in print by both the Seattle Times and the New York Times.

While the rest of the nation's construction industry and real estate market has steadily suffered over the past 12 months, in New Orleans real estate prices hold firm and the construction industry is 'booming.'   Here is a quote from the Seattle Times article about the NOLA construction market, and even a quote from local contractor Landis Construction:

The recovery dollars are paying for projects large and small, including an $800 million replacement of the damaged "twin span" bridges over Lake Pontchartrain and thousands of homes being fixed under the state-administered Road Home program. The Army Corps of Engineers continues to use contractors to strengthen the levee system. In working-class neighborhoods such as the Ninth Ward, laborers are pounding away on small-scale renovations.

"Katrina was a horrible nightmare, but the reality is that, for the construction industry, it's been a blessing," said Theresa Leger, a vice president of Landis Construction, a local firm that has remained busy since the hurricane.

The New York Times article looked at the city's sustaining economy from a different angle; as evidence that a stimulus package can work to improve economic conditions.

The article calls the federal government's $51 billion injection into post-Katrina Louisiana an "unintended trial rune" of the $787 billion national stimulus bill.  

And what are the results?  

The New York Times says the results are good - and especially for the construction industry.  Here's a quote from the piece:

State economists specifically mention what one called “the ongoing building boom” from federal dollars as a main reason for the numbers. Largely a result of the damage caused by Hurricane Katrina, construction projects have not dried up as they have elsewhere, and a few can even be seen in downtown New Orleans.

Construction has “really hung in there and done very well,” said Loren Scott, an emeritus professor of economics at Louisiana State University. “In most states construction is way down, but in ours it has been up.” The relatively low unemployment rate in Louisiana “tells you that the stimulus can have an effect,” Mr. Scott said.

Read more about the Stimulus Package and how it relates to the Construction Industry on the Construction Law Monitor here.

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Here is a quote from New Orleans' Mayor Ray Nagin in a recent USA Today article titled "$700M in federal aid finally flowing to New Orleans:"

Construction on jails, police and fire stations, playgrounds, theaters and mixed-income housing developments — all battered by the 2005 floods — has started or will start this year, as public federal funds finally were unleashed from bureaucratic tangles, Mayor Ray Nagin said in an interview with USA TODAY.

"You're going to be able to see, touch and feel it," Nagin said. "We're really headed into a year of unprecedented construction."

Certainly this is exciting news for contractors in Southeast Louisiana, who experienced a surge of work in the aftermath of Hurricane Katrina, but has since succumbed to the rigors of the national recession.

The news of Katrina-related aid coming to the region is icing on top of the cake for the Louisiana construction industry, who is looking forward to a large amount of stimulus cash being spent in the state's infrastructure.

Just this weekend there was news out of Baton Rouge that despite previous resistance, Governor Bobby Jindal would likely be accepting all stimulus aid.  The state launched a stimulus spending website, http://www.stimulus.la.gov/, and identified the first LA project to use stimulus funds (the long awaited Larose bridge).

How Do You Take Advantage of The Stimulus?

If your company is interested in taking advantage of the planned stimulus projects it must get familiar with public contracting, Davis-Bacon prevailing wage requirements, the public bidding process and more.

A great resource to learn more the requirements and strategies of public contracting is Mike Purdy's Public Contracting Blog.

With more than 29 years of public contracting and procurement experience, Mike helps government agencies and businesses develop contracting strategies, solve contracting problems, and get better informed on a wide variety of public contracting and procurement issues.  His consulting company, Mike Purdy & Associates, is based out of Seattle, WA.

Here at the Construction Law Monitor, we provide commentary and insight on the legal components of government contractor (state and federal).  You can read posts related to public contracting through the category Public Contracting here.

Last month (Feb. 2009), we posted a particularly helpful article for businesses unfamiliar with the public contracting process called "The Stimulus Package and Your Construction Business." 

The article briefly breaks down the legal and practical differences between public and private work, and outlines the basics for contractors interested in preparing their company to bid on public jobs.

Wolfe Law Group Can Help
If your construction company is in Louisiana or Washington, we'd be happy to discuss Public Contracting with you further, and to help your organization position itself to responsibility bid on upcoming stimulus work.   Learn more about our practice at http://www.wolfelaw.com.

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