Posts Tagged ‘Stimulus’

World Wide Green Frenzy

On March 9, 2009 Author By Scott Wolfe Jr        

With a weak economy, no jobs in sight and an incessant media frenzy, the White House has gone GREEN! Wouldn’t that make it a Green House? President Obama’s stimulus package aims to put about 20 billion dollars into greening the economy.

“Greening the economy” sounds like the US government is trimming hedges, planting bulbs and whacking weeds.  In all seriousness, the focus is on improving the current economic situation while simultaneously reversing the damage done to the environment. Genius! Obama’s goal is to create 2.5 million new jobs in the green sector of the economy by 2011.

Obama’s green stimulus package will also likely include tax breaks for clean tech projects like solar panels, wind farms, biofuels, and carbon capture and sequestration.  Therefore employment opportunities that are categorized as “green- collard jobs” such as green building, LEED certified construction professionals, wind turbine mechanics and jobs pertaining to energy efficiency and production will be in high demand.

All over the world from London to Hong Kong, governments are coming to the realization that “going green” is a necessity for creating jobs and saving the economy. You can read more about the world wide efforts to “go green” at the UN News Centre.

Right here in the the United States of America, states are adopting laws that provide individuals and developers with tax incentives to incorporate Green Building standards into their homes and/or commercial properties. The more emphasis placed on Green Building in the near future, construction professionals with knowledge and certification in Green Building will find themselves at the forefront of an upturned economy.

There are many opportunities for former construction workers in the green sector. In fact, the number of jobs in “renewable or energy efficient” industries is climbing at a fast rate and government support is only going to boost the speed!  Going green on a construction job encompasses using both renewable resources and energy efficient methods. Wolfe Law Group published a series of blog articles relating to Green Building for contractors. To read the Green Building article series click here.

Posted in:     Green Building  /  Tags: ,   /   Leave a comment

Around the Web: Updates on Construction Law and Wolfe Law Group 2/20/09

On February 20, 2009 Author By Scott Wolfe Jr        

Around the Web this week, we found lots of commentary and conversation about how the new Stimulus may positively impact the struggling construction industry…and, of course, talk about the upcoming Mardi Gras holiday (celebrated by our New Orleans office).

Posted in:     Around The Web  /  Tags: , , , , ,   /   Leave a comment

The Stimulus Package And Your Construction Business

On February 17, 2009 Author By Scott Wolfe Jr        

Yesterday, we wrote an article on the Stimulus Package and what it may mean to the construction industry.   Today, we’re focusing on what it may mean to your specific construction business.

While the private contracting business has suffered setbacks in the current economy, one bright spot has remained:  the growth of public and federal construction spending.

The passing of the new stimulus build with large investments into America’s infrastructure and other public works promises to put even more money into the public contracting business.

ConstructionBusinessOwner.com published two very informative articles about how your business can take advantage of the increased public spending.

The Differences Between Public and Private Projects

The first article, titled Three Key Steps for Shifting To Public Works Projects, explains some the key differences between private works and public works, and identifies common mistakes made by companies when entering the public sector.

The article encourages companies to consider bidding for and taking on more public work, but warns against doing so without proper preparations.  Here is a revealing quote:

Making the shift to prevailing wage jobs takes preparation. Without proper planning, contractors run the risk of underbidding jobs-and, subsequently, losing money-or getting slapped with steep penalties for improper recording keeping. Establishing protocols for certified payroll and AIA progress billings and having solid audit trails for each transaction are vital if you want to succeed in the government-financed construction market.

So what are the 3 Key Steps to shifting from private to public work?

  • Get Educated
  • Automate Your Accounting Practices
  • Bid on Projects Based on your Strengths

How To Get Federal Work

The second article, Claim Your Share Of Rising Federal Construction Spending, was published immediately after passage of the new stimulus package, and really explains how businesses – and especially small businesses – can intervene in the federal works bidding process and claim some work.

In its discussion of why small or minority owned businesses have a dog in the federal contracting fight, the article states as follows:

Unfortunately, far too few small businesses take advantage of federal contract opportunities, even though the federal government is required by Congressional mandate to direct 23 percent of its contracts toward small businesses. Despite this mandate, the latest figures from the Small Business Administration indicate that the federal government fell short of this figure.

Although there are various factors behind this shortfall, two things are pretty clear. First, if more small businesses were competing for these contracts, more would win them. And second, small business owners who are savvy about the process of securing government contracts are the ones most likely to land them.

Summary of the article’s tips for preparing to bid on federal projects:

  • The government will want basic information and methods of Identification.   Get a DUNS number (free from Dun & Bradstreet), a Federal Tax ID number (EIN), understand your NAICS and SIC classification, and have accurate financial routing information for your business available.
  • Create a profile on the Central Contractor Registration database. The CCR is where all government agencies and prime contractors turn when they are looking for potential vendors.
  • The federal government is obligated to award a certain percentage of its contracts to various underrepresented and disadvantaged groups. If you think your business may qualify, you should register with the U.S. Small Business Administration (SBA), whose Small Disadvantaged Business (SDB) and 8(a) programs are designed to help specific groups secure federal contracts and subcontracts.
  • Consider Subcontract work.  Getting your foot in the door is sometimes the hardest part in landing government contracts. First-time bidders can be at a disadvantage because the government often relies on established relationships when selecting contractors. Fortunately, large construction projects often depend on a host of subcontractors, which could be your ticket in.

See also Industry Week’s article, Your Best New Customer May Be Uncle Sam, for other helpful information.

Posted in:     State & Federal Contracting  /  Tags: ,   /   1 Comment

The Stimulus Package And The Construction Market

On February 16, 2009 Author By Scott Wolfe Jr        

It’s official:  The Stimulus package has passed Congress and is expecting the President’s signature early this week.

Now that the parameters of the “economic recovery” package have been set, the construction industry can step back to determine whether and how the stimulus can help.

It’s no secret that the construction industry has been closely monitoring the economic stimulus legislation.    With residential construction spending sinking to new lows each month, organizations like the Associated General Contractors of America have been lobbying the legislature to “invest in the country’s infrastructure” as an attempt to equalize some of the woes of the private sector with growth in the public sector.

Notwithstanding the lobbying efforts of trade organizations and the monitoring of the stimulus bill, it’s nearly unanimous among commentators on the subject that construction companies will likely be the biggest beneficiaries of the stimulus deal.

The clear next question, of course, is “how?”

Frost Brown Todd, LLC published a blog article about “What Contractors Need To Know“ about the House version of the stimulus package.  While not a direct analysis of the final bill, the article is still very relevant to it, explaining a number of details about the bill, where stimulus money will be allocated and why the construction industry may benefit from the spending.

Perhaps the best break-down of information comes from The Associated General Contractors of America website, which provides a state-by-state stimulus impact chart.

The AGC’s website also provides PDFs for each state, with a detailed status-briefing of the construct industry and an explanation of how the stimulus package may help.   You can download the reports on Washington here, and Louisiana here.

The AGC’s summary of the Economic Impact of the Stimulus Investment in Louisiana is as follows:

An additional $1 billion in nonresidential construction spending would add about $2.2 billion to the state’s Gross Domestic Product (GDP), about $698 million to personal earnings and create or sustain 23,000 jobs.

The AGC’s summary of the Economic Impact of the Stimulus Investment in Washington is as follows:

An additional $1 billion in nonresidential construction spending would add about $2.4 billion to the state’s Gross Domestic Product (GDP), about $753 million to personal earnings and create or sustain 20,000 jobs.

This article has discussed the stimulus package and how it may impact the construction industry.  Tomorrow, we’ll discuss how the stimulus package may affect your construction business….and give you tips on how to take advantage of the increase in public construction spending!

Now, for some comic relief, here is a clip of Mr. Stephen Colbert’s discussion of the Stimulus debate:

 

Posted in:     Construction News  /  Tags: , , ,   /   4 Comments
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