Around the Web in Construction Law – May 21, 2010

• 29 States Add Construction Jobs Between March and April:    The Associated General Contractors of America released its report on the rise/fall of construction jobs around the country for the most recently reported month, and there is a mixture of good news and bad news (depending on where you are).   29 states splits the country directly in half, with some folks having a good month and some folks not.   The New Orleans City Business Blog chimed in to pass along word that Louisiana lost jobs during the period. Washington and Oregon gained jobs in the period, barely.   .01% and .02% respectively.
• I subscribed to a new blog this week, Government Contracts Legal Forum, recently launched by Crowell Moring and focusing on….government contracting law.   Involved with this blog is our friend in green building law, Chris Cheatham, who works at Crowell Moring and will be posting on the new blog from time to time.   Chris runs the Green Building Law Update blog.   One of his firsts posts on the new blog points out an Obama Executive Order that will require more green building projects.
• New Lead Based Paint, Renovation, Repair and Painting Rule is causing contractors to panic, as per Andrea Goldman’s Massachusetts Builders Law Blog.   Andrea has posted a great deal about the new RRP rules, and if you deal with lead-based paint in any way or you renovate homes or buildings with lead-based paint, you will want to pay attention to these important changes from the EPA.
• Louisiana Construction Law Blog on Blogspot discusses “Initial Decision Makers” in construction projects.   While IDMs have been around for a while, there really became popular when the AIA incorporated the concept into its contract documents a few years ago.    This post from our friends up in Shreveport, Louisiana, offers a great primer on the concept.

Interested in more articles and blog posts around the web on construction law?   You can check out other articles I’ve shared over the past week on my Google Reader Shared Items Feed.

E-Verify Required Starting September 9, 2009. Is it Really Going to Happen?

E-Verify, a government web-based system that helps employers verify a workers legal status, has been in the news before.

Originally a George W Bush executive order, E-Verify was slated to become mandatory for federal contractors beginning January 15, 2009.   The change in executive administrations and a handful of lawsuits, however, pushed the requirement back indefinitely.

This week, the Obama administration chimed in on the subject, and announced that it would support the E-Verify requirement, and that it would take effect across the country starting September 8, 2009.   Appropriately, the day after Labor Day.

Any federal projects or businesses receiving money under the federal stimulus program will be subject to the rule, and required to register and use the E-Verify system.

Differences Between Obama E-Verify and Bush E-Verify

When comparing the Obama E-Verify requirement and the Bush E-Verify requirement, one difference stands out:   Obama has ditched the “No-Match” system.

As a result, for better or worse, the requirement going into effect this September will have substantially less teeth.

Ditching the “No-Match” component of the E-Verify requirement will benefit employers because they will not be required to terminate (on such a tight time-line) employees whose social security numbers do not match with the system.

It will benefit workers, too, because Obama will not allow the federal government to use mismatched SSN data to find illegal immigrants in the workplace.

Is It Really Going To Happen This Time?

The short answer:  Yes.

While it has been delayed repeatedly in the past year, and there’s always a possibility for more delay, it looks like the latest effective date will stick.

The Obama administration has reviewed the requirement, and is now standing behind it, and by ditching the most controversial aspects of the rule, there will be fewer legal and political challenges.

Beginning September 8, 2009, therefore, the government will award contracts only to companies in compliance.

Who Needs to Be Prepared?

A lot of people need to be prepared for this E-Verify requirement.

While the controversial components of the requirement have been removed by Obama, the scope of the rules applicability has actually gotten broader.   The requirement will not only apply to contractors and subcontractors on federal projects, but it will also apply to any business receiving money under the federal stimulus project.

With the influx in federal and state spending on construction projects, and the decrease in private work available, more and more contractors are being forced into bidding and working on public works.  And with the now wider reach of the E-Verify program, contractors and subcontractors need to prepare themselves.

In February 2009, we wrote a post here at the Construction Law Monitor titled “The Stimulus Package and Your Construction Business.”

The post discussed the differences between private and public works, and addressed some of the issues private contractors face when working on its first public project.

Add the new E-Verify requirement to the list, and the article is still a good read.

Is this Still Controversial?

Even with Obama’s backing of the system and some tweaks to its enforcement power, the E-Verify program definitely still has its detractors.

The San Bernardino Sun News just ran an article about how the E-Verify system puts Obama at odds with some democrats.

Despite the controversy, the E-Verify requirement will take effect on September 8th, and construction companies around the country must be prepared.

Louisiana Gearing Up For Green Boom? Is it Finally True?

The New Orleans Times Picayune ran a story last week that lead off with these two paragraphs:

Louisiana is expected to get $122.3 million in federal economic recovery money to improve the energy efficiency of homes, government buildings and public transportation over the next three years and to jump-start renewable energy projects for electricity generation.

The money should create scores of new jobs for tradesmen willing to learn green building practices. It also will help moderate-income households around the state improve the energy-efficiency of their homes and lower their utility bills.

Over the next three years, authorties estimate that over 6,000 homes will be weatherized under the program.

In addition to this, President Obama has recently come out to designate New Orleans as the “U.S. Blueprint” for green construction and environmental protection, invigorating urban centers and stressing volunteerism.

Perhaps the promise of the Global Green USA’s Build It Back Green program, Brad Pitt’s Make It Right Foundation and other similar programs are finally making its impression, and the New Orleans area will see real investment in green building over the next few years.