April 12, 2024

Thank you to everyone who sponsored and joined us at the Leadership Blueprint Graduation Reception and our Spring Member Networking event this week! Click below to see photos.

Leadership Blueprint Graduation Reception

Spring Member Networking Event

NEXT WEEK: WORK ZONE AWARENESS WEEK

GOVERNMENT AFFAIRS NEWS

Oppose Legislation that Drastically Alters Independent Contracting

in Construction

Fast-tracked legislation that establishes a new multi-part independent contractor test for building construction and improvement services is nearing its final committee stops in the MN House and MN Senate.

WHAT TO DO: Tell your State House Representatives and Senators to oppose HF 4444/ SF 4483.

WHY IT MATTERS: The new multi-part test increases the current nine-factor test to 14 requirements to be a legitimate independent contractor operating in construction. If the worker fails to meet even one of the 14 criteria, the bill states the worker is an employee. Then, the legislation uses individual and successor liability flowing up the contracting chain with substantial penalties for misclassification. The contractor would face liability regardless of fault or knowledge of the misclassification. In many cases, it is not possible to independently verify that a contractor meets all 14 requirements. The bill intends to enforce these requirements on building construction and improvement services, including private and public commercial sector or residential building or improvement services.

Contact your legislators in under 1 minute

THE LEGISLATION:

Creates significant risk that a contractor and any owner, partner, principal, member, officer, or agent could face liability for compensatory and punitive damages without fault or knowledge of misclassifying employees.

Makes legitimate independent contractors employees because they cannot satisfy all 14 test requirements.

For example, requirement #13 requires that an independent contractor must be “responsible for the satisfactory completion of the specific services … and is responsible … for failure to complete the specific services.” This conflicts with the long-standing principle that contractors can only be deemed responsible for following the design provided by owners and cannot be held solely responsible for ensuring a satisfactory result.

Increases operational costs for contractors to try to comply. Meticulous record-keeping and record-submissions to upper-tier contractors will strain generals and subs, particularly smaller contractors.

For example, part of requirement #4 requires an independent contractor to receive and retain 1099 forms for income received for building construction or improvement service provided or performed. An upstream contractor will need to rely on their downstream contractor to provide an accurate list of all income instances where a 1099 was required and then rely on subs to provide a copy of each 1099 document. The upstream contractor has no way of to verify through a public or third party means. The magnitude of information needed to be collected is significant, and much of it will require confidentially protections.

AGC POSITION AND ACTION:

In many instances, it is not possible for a contractor to meet all of the requirements to be in compliance. It is also not feasible for an upper-tier contractor to independently verify the current status of each criterion for every contractor they do business with. AGC has asked the Department of Labor and Industry how contractors will be able to comply if signed into law. AGC government affairs staff have been in discussions with legislators and the Department of Labor and Industry, and have testified with strong opposition in all of the committees stops.

Contact your legislators in under 1 minute

DIVERSITY, EQUITY, & INCLUSION (DEI) NEWS

BGCTC Changemaker Challenge Collaboration Event

BGCTC’s NEW Changemaker Challenge encourages Club teens to develop innovative solutions or ideas that address specific social, environmental, or community challenges that aim to create positive change. Within the framework of TLC (Think, Learn, Create), participants are asked to propose and develop an advocacy project that has a meaningful impact on the social challenge they have identified. The goal is to inspire and support those who aim to make a difference in their communities. Social challenges include mental health, food deserts, foster care, clean water, and access to adequate clothing.

Hennepin County 2024 Construction Networking Event

The event brought together:

Minnesota’s premier general contractors
Local resource providers
Local small and emerging companies

General contractors
Subcontractors
Suppliers

Small business owners learned about:

Upcoming opportunities available in 2024-2025
Resources available to grow their business
Ways of connecting with their project teams

GENERAL NEWS

AGC Members can post RFPs for free

Are you using all of your AGC member benefits? AGC member contractors can post DBE/MBE/WBE/ Veterans Preference RFPs on the AGC website for free. These count toward your good faith efforts!

Send a .pdf copy of your RFPs to Renee (be sure the bid date is included) for posting.

Federal Reserve Spring Construction Survey

The Federal Reserve Bank of Minneapolis needs your input on current conditions in the construction sector and at your company.

Please take this short survey to help the Fed better understand business conditions at your company and across the sector.

Why respond? A couple of reasons:

It provides real-time information to Minneapolis Fed President Neel Kashkari for FOMC meetings (where the Fed decides interest rates and other monetary policy).
It provides real-time information to our partner organizations like AGC.

All responses are anonymous. To maintain anonymity, please do not include any self-identifying information in comments. If you receive this survey from multiple partners, please respond once.

Your input is greatly valued, and the Minneapolis Fed appreciates your time and insights on these important matters.

Help AGC and HCSS Improve Highway Work Zone Safety

Each year AGC of America conducts a survey of members involved in construction work on or near highways to evaluate the state of work zone safety. AGC will use the information collected from this survey as the main focus of a media and public education campaign to get the message out that drivers need to slow down and be more careful in work zones.

To do that, AGC wants to collect information on the number, severity, impacts and potential solutions to highway work zone crashes. They also want to know if you feel that current work zone laws, and enforcement efforts, are effective in the states where you operate.

Please take a few minutes to complete the survey by Friday, May 10. This will give enough time to analyze the results and release the results and safety messages to the media and broader public in advance of Memorial Day and the traditional start of the summer driving season.

Please do not hesitate to contact Brian Turmail with any questions, comments or concerns about this survey and the plans to use it to promote highway work zone safety.

Questions to Ask Yourself Before Investing in Construction Technology

As a contractor, you know the benefits technology can offer to your job sites, but you may not know where to start. Your first step: find the right partner to review your business needs and budget. Next step? Ask yourself these questions to make a smart investment: What is my most significant pain point? How much am I willing to invest? Am I prepared for the future? Read more.

John Weber has worked in the construction equipment industry for more than seven years. As the General Manager of RDO Equipment Co. in Dayton and Sauk Rapids, Minnesota, he helps contractors build in rural and metropolitan areas.

Environmental Permitting Reform: Regional Meetings

Minnesota’s environmental permitting process has long been the topic of concern among business leaders, with several notable economic development projects have stalled out or left the state due to reported permitting challenges. The Minnesota Chamber Foundation, the nonpartisan research arm of the Minnesota Chamber of Commerce, recently released a report providing recommendations to increase certainty throughout Minnesota’s permitting system and provide actionable strategies to improve transparency and timeliness without lowering standards.

This six month analysis was completed in conjunction with consulting partners Barr Engineering, the Policy Navigation Group and Squire Patton Boggs. The research examined Minnesota’s air, water and wetland permitting process, along with environmental review. In addition to the analysis around timeliness and certainty, the study compared Minnesota to neighboring and peer states, reveals the economic impact of delays and uncovers the challenges impacting transparency. The report also identifies clear and actionable strategies to streamline permitting for new business investments.

Join either of the upcoming meetings to learn the facts and data uncovered in the report, and the Minnesota Chamber Foundation’s recommendations to shape an environmental permitting process that can both protect the state’s cherished natural resources and produce timely and reliable outcomes for businesses:

Full Summer Overweight Permits Start April 15 in the South and Southeast Frost Zones

The Minnesota Department of Transportation will start full-summer overweight permits in the South and Southeast frost zones Monday, April 15, at 12:01 am.

Seasonal load limit zones and restricted routes can be found here. Start and end dates and other load limit information are shown here.

Apply for Scholarships!

The application form for 2024-2025 AGC of Minnesota Foundation scholarships is open. Please share with any young people pursuing a degree in the construction industry!

EVENTS & NETWORKING

Expand the Toolbox: Reinventing our Construction Workforce Through Technology Advancements

Join us on Thursday, May 2 at Knutson Construction for an exciting event exploring the cutting-edge technologies evolving the construction industry! This event will host industry experts that will discuss the latest technological trends and innovations that are shaping the future of construction.

Contractors and Education - If you are looking to incorporate new technology into your business or update your workforce with the latest skills and knowledge, this event is perfect for you! We will cover a wide range of topics, from digital tools and software to advanced equipment that are changing the way we build.

Attendees will have the opportunity to learn from industry leaders, participate in interactive panel discussion, and even experience live demos of the newest construction technology equipment in action.

Learn more and Register

CERT Connect Open House for ALL Small Businesses

Join many departments within Ramsey County, as well as city partners and the U of M, on Thursday, May 9 (8:00-10:30 a.m.) at the Maplewood Community Center for an opportunity for small businesses to have deliberate, worthwhile conversations with county staff who are directly involved in construction!

Learn more and Register