Austin Chapter AGC
Austin Chapter AGC Monthly News Update
March 2017
In This Issue
Upcoming Chapter Events
Workforce Survey Results
Expedited Permits
Legislative Day
CLC Networking Event
Resumes and Job Listings
Quick Links
 
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UPCOMING CHAPTER EVENTS
Safety Committee Meeting - April 3
Spring Golf Tournament - May 15 (more info soon)
Communications Workshop - May 16  (more info soon)

Safety training available on demand!  Contact Rob Williams to schedule. 
AUSTIN AGC SURVEY FINDS 3 OUT OF 4 LOCAL CONSTRUCTION COMPANIES HAVING HARD TIME FINDING WORKERS
   

A recent Austin AGC survey of local contractors found that  74% of local commercial construction companies are having a hard time finding hourly craft workers. Coincidentally, this figure is exactly the same as the statewide result reported in an AGC of America survey last year.  

Also, 39 % responded that they've been having trouble for years finding workers, regardless of the recent government policy changes regarding illegal immigration . Only 19% responded that the recent changes are having SOME or a MAJOR impact on their work. 24% say it's too early to tell, while 15% said it's having no impact.
These survey results help confirm that the Central Texas construction industry is currently suffering, and has been for years, from a workforce shortage.  Further straining the worker pipeline is Austin's rapid growth that has placed unprecedented demand on the industry for construction projects in all markets - housing, buildings, roads and other infrastructure - resulting typically in higher pricing and longer schedules.
The survey also asked for perspectives on the frequently cited statistic that 50% of construction workers in Texas are undocumented.  On this question, 30% said this figure is about right or even too low while 29% said it depends on the type of work and trades involved.  Also, 16% said the statistic is too high while 20% said they don't really know.  
Numerous comments submitted by the 79 survey responders indicate that the percentage of undocumented workers varies depending on work performed and owner requirements. For example, c ontractors working on Federally funded projects are required to E-Verify the workforce, a process that effectively weeds out any undocumented workers.  
The comments also confirm that most companies want to see a clear pathway established for immigrants so they can attain some level of legal status and help the construction industry keep up with workforce demand.  To this end, the AGC of America strongly supports a number of  immigration reform measures that both secure the border while allowing a pipeline of eligible workers to come to the US and earn legal citizenship.  
Here on the local level, the Austin AGC has been a strong supporter of workforce development opportunities ranging from apprenticeships, high school and community college vocational training, workforce reentry programs and efforts to promote construction as a career path of first choice.  
CITY of AUSTIN UNANIMOUSLY APPROVES EXPEDITED PERMIT OPTION WITH STRINGS ATTACHED

 
The good news is that the Austin City Council finally approved an expedited permit option for building construction projects, but the bad news is that large commercial projects above $7.5 million must also opt in to a "Better Builder" certification process as advocated (and offered) by a local community organizing group in order to get the quicker review. Residential and smaller commercial projects are NOT included in this extra requirement, evidently out of cost and burdensome regulation concerns. More details of this new permit process are now available on the City's Development Services Department (DSD) website here.  

One very important detail not available as of yet is the added cost of opting into this "Better Builder" worksite monitoring program, though it has been estimated by City officials at $1.25 per square foot of the project with an annual cost cap of $60,000). The only costs available at this time are for the actual permit review process conducted with City staff.

The Austin AGC and other industry groups opposed this extra "Better Builder" requirement, but it was clear from the earliest stakeholder discussions last year that this added ask enjoyed overwhelming support from the City Council and Mayor. T he AGC strongly supports safety and worker protections, of course, but the "Better Builder" requirement targets only large, commercial projects with no residential component. This is odd because it's typically on the larger commercial construction sites where the best trained and most safety conscious workforce can be found.  

Another concern under this proposal is that the City wants to contract out with a 3rd party for the monitoring of the "Better Builder" standards.  Assuming a high cost to opt in to the program (again it has been estimated at $60,000 a year by the Development Services Department), the City is missing out on a large revenue generating opportunity that could go a long way toward funding other improvements in the permit and building review process. 
 
More details as to how exactly this "Better Builder" program will be enforced, and at what cost, are expected in the months to come.


CONTRACTORS at the TEXAS CAPITOL
More than 160 AGC members and students from across the state flooded the Capitol last week week to advocate on behalf of the Texas commercial construction industry.   Attendees met with lawmakers and staff from the House and Senate as well as Texas Comptroller Glenn Hegar to move the ball on three legislative priorities: Right to repair construction defects; modernization of lien laws; and state breach of contract laws. Bills addressing each of those issues (HB 2343, SB 1506, HB 2121, and HB 2128) were referred to committees this month. To stay on top of the AGC Texas Building Branch (TBB) legislative activities, be sure to sign up for their newsletter here.

THANK YOU to all who made it to the Capitol for this year's Legislative Day, especially those from the Austin AGC! 
CLC NETWORKING EVENT on APRIL 20
 
 
Please join the Austin Construction Leadership Council (CLC) on April 20 for the annual CLC Spring Celebration!  This is a chance to mingle with members of the A/E/C industry, learn about how to become more involved with the Chapter, and have a real good time!   More information here .
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.