Austin Chapter AGC
Austin Chapter AGC Monthly News Update
June 2016
In This Issue
Upcoming Chapter Events
Expedited Permits
Concrete Placement Update
AISD Safety Update
AGC TBB Convention
Economic Update
CLC Leadership Forum
Resumes and Job Listings
Quick Links
 
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UPCOMING CHAPTER EVENTS
Sporting Clays Tournament - September 8 
Fish Fry at Texas Disposal Systems Exotic Game Ranch - Oct. 6

Safety training available on demand!  Contact Larry Connelly to schedule. 
CITY CONSIDERS ADDING BUILDER REQUIREMENTS in EXCHANGE for EXPEDITED PERMITS
The Austin City Council approved a resolution (draft available here) on June 16, 2016, directing the City Manager to prepare options that include minimum requirements for developers wishing to voluntarily participate in the City of Austin's expedited permit review process.  In addition to paying fees for the faster permit, a "minimum requirement" option under consideration could ask developers and their construction team to seek "Better Builder" certification, as offered by the local Workers Defense Project

At first glance the main Better Builder program components - safety training, pay by the hour at a minimum floor, workers comp coverage - are reasonable asks for commercial projects. 
In fact, these requirements are typically included as part of a commercial contractor's good business practices and are strongly encouraged by the Austin AGC.   So what's problematic, then, with requiring participation in a "Better Builder" program that contains these requirements in exchange for an expedited permit on commercial projects?   Here are a few issues of concern to AGC and other industry partners:
  • The added requirement defeats the purpose of an "expedited" permit process.  While the up front permit process may be expedited when developers opt in to the Better Builder program, these time and financial benefits are reduced, possibly neutralized, on the back end when the construction phase is begun. 
  • The program requirements will add costs to construction projects that will be ultimately borne by Austin's renters and owners.  While the developer and contractor will front the costs of the Better Builder program, related expenses (such as for hiring WDP monitors) will eventually be passed along to the building's end user, whether a renter or owner, and add to Austin's already high cost of living.
     
  • Better Builder monitors from the Workers Defense cannot be expected to be truly independent. The WDP is an organization established for low-income workers.  As such, WDP monitors can be expected to consistently prejudice - intentionally or not - common worksite disputes in favor of the workforce.
     
  • Other options exist besides the Better Builder program.  For example, Capital Metro recently approved a similar, but distinctive, building requirement for the Plaza Saltillo project.  The key difference on that project is that the developer and Cap Metro select an on site monitor, while only the WDP serves as the monitor under the Better Builder program.  
  • The program's local hire provision excludes construction workers coming out of many local programs.  By restricting local hiring goals to Department of Labor certified apprentice programs, the Better Builder program excludes workers who graduate from many other local construction education programs, including Goodwill, Austin area high schools, Austin Community College and others.
     
  • The WDP Better Builder program is actually part of a new strategy to strengthen organized labor efforts in the construction industry.  In the wake of declining union membership in Texas and nationwide, labor leaders believe that empowering worker associations to represent workers through onsite, worker-led, enforcement of local labor standards is a creative, 21st century strategy to strengthen worker organizing efforts.  This effort to require the Better Builder program in exchange for expedited permits is an example of this strategy in action.  
There are other issues as well, including the concern about one non-profit group advocating for City Council approval of program that, in turn, could directly and uniquely benefit that group alone. 

Council consideration of the Better Builder program in return for expedited permits could occur as early as August.  In the meantime, AGC is working to educate industry and decision-makers about the ramifications of "unexpediting" an expedited building permit, and other concerns. 

For more information, contact Phil Thoden.
CONCRETE PLACEMENT UPDATE
On May 19 the Austin City Council extended through August 31 the current, temporary rules for concrete placement at night and early mornings in downtown.  Since that time a coalition of industry partners has been actively engaged with City staff and downtown resident groups to craft compromise solutions that do not unfairly restrict contractors from pouring concrete downtown at night.  In June these stakeholders agreed on several options that are now being reviewed by City staff in preparation for City Council consideration in August. 

For more information, contact Phil Thoden.
AUSTIN AGC SAFETY DIRECTOR RETIRING
   
Thank you Larry for all your efforts to teach safety to thousands in the Austin construction community!
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Austin AGC Safety Director, Larry Connelly , has decided to retire at the end of 2016.  Larry started at the AGC in May of 2008, and since that time he has served as a tireless teacher and friend to thousands of construction professionals striving to keep workers safe on jobsites.  His engaging personality, endless desire to help workers, and extensive knowledge about construction safety will be greatly missed by both the Austin and Texas construction communities.
 
As Larry prepares for retirement, the Austin AGC is actively seeking candidates for the position of Safety Director.   We would like to have a replacement on board before Larry departs so they can work together for several months to ensure a smooth transition into 2017 and beyond. 
 
 A list of the Safety Director job requirements is available here. Please refer any qualified applicants or questions to Phil Thoden at the Austin AGC.  
 
I hope you will take time at some point in the next 6 months to reach out to Larry and thank him for his service to the industry, your company, and your employees!
AGC TEXAS BUILDING BRANCH (TBB) STATE CONVENTION RECAP 
Nearly 300 attendees from Texas' 11 AGC building chapters headed to Horseshoe Bay Resort for the 39th annual AGC Texas Building Branch Convention held June 12-15.   Considerable time was spent reviewing and discussing the TBB's 2017 legislative agenda
 
On Monday, AGC TBB membe rs convened for the General Business Session, featuring Harvey Hilderbran, who spoke about his role as the Texas State Facilities Commission executive director. Prior to his appointment to the post in January 2015, Hilderbran served in District 53 of the Texas House. 
 
Following Hilderbran's presentation, AGCTBB Vice President and  General Counsel Corbin Van Arsdale moderated a panel discussion with Reps. John Cyrier and Paul Workman (left and center, respectively)   - two AGC members serving in the Texas House. Workman (R-Austin) has served in the Legislature since 2011 and represents House District 47. Cyrier (R-Lockhart) serves House District 12 and was elected in a special election in February 2015.
 
The morning session closed with Ross Fischer, of The Gober Group, who focused his presentation on House Bills 23 and 195 - two ethics bills that passed into law in 2015. An expert in the areas of political law, professional ethics and public integrity matters, Fischer was appointed in 2014 to serve on the select interim committee to study ethics law.
     
On Tuesday, two members of the AGCTBB Legal Affairs Committee - Robert Bass, Winstead, PC and Curt Martin, Peckar & Abramson, PC - spoke about lien law and right-to-cure issues, respectively.  Bass is considered by many in our industry to be the godfather of the Texas lien laws and its changes over the past 30-plus years. 
   

Martin , who served on the AGC of America National Mold L itigation Task Force and the Risk Management  Committee focused on construction defect claims and ongoing AGC TBB issues at hand.
 
Rep. Carol Alvarado (D-Houston), serving Texas House District 145, spoke about her political career, which began serving the 1st District on the Houston City Council in 2007. She currently serves as co-chair of the Transparency in State Agency Operations Committee, vice-chair of the Urban Affairs Committee and member of the House Calendars and Special Purpose Districts Committees. 

More information about the Convention is available in the TBB newsletter here.  Presentations and more photos are on the TBB website here
AGC ECONOMIST DELIVERS CONSTRUCTION FORECAST to AUSTIN CHAPTER
On June 17, AGC of America Chief Economist Ken Simonson visited the Austin Chapter and delivered his construction forecast.  Ken says private non-residential will tick up steadily at 5-10% in 2016 and 5-8% in 2017.  Meanwhile material prices will stay steady in the 0-2% range through 2017 while labor costs tick higher in the 3-4.5% range.

 
CLC LEADERSHIP ACTIVITIES
 
Registration is now open for the AGC Sporting Clays Tournament benefiting the Austin Construction Leadership Council (CLC) scheduled September 8 at the Capital City Trap and Skeet Club. Interest in this event is high, so register now and don't get shut out!

More information and registration here. Thank you to all our sponsors!   


CONSTRUCTION RESUMES and JOB LISTINGS 
AGC Chapters around Texas have formed a partner website called  texasconstructioncareers.com   to  help you find employment or an employee.  Check out the job bank page to post yo ur resume or review potential hires.