MBEX Has the Scoop

Building Buzz: December 18 - 22

We're reading the headlines so you don't have to. From projects under construction, federal funding allocations, and employment reports, here's what's buzzing in the building world from the week of December 18 - 22, 2023:

Highway 210 project receives federal funding
The upcoming Highway 210 / Washington reconstruction projects in Brainerd received federal funding. U.S. Senator Amy Klobuchar and Tina Smith announced on December 11th, the U.S. Department of Transportation awarded $25-million to the project. The money is provided through the department's Multimodal Project Discretionary Grant program, and it will allow the Minnesota Department of Transportation to address safety concerns along the thoroughfare. The project --- estimated around $45-million --- is planned for 2026-2027 and will see the reconstruction of Highway 210 / Washington Street between Baxter Dreive and Pine Shores Road in Brainerd. (12-11-2023 | Brainerd Dispatch)

Catalyst Construction breaks ground on Mayfair Medical Commons
Milwaukee-based developer Irgens announced construction has started for Mayfair Medical Commons, a new 45,823-square-foot medical building in Wauwatosa. The building is part of a larger redevelopment planned for a prime infill site south of the Research Drive entrance into the Milwaukee County Research Park, officials said. The project calls for a two-story, steel frame structure with a flexible interior design. Ample signage will give many users bidding opportunities, less than a mile from the Milwaukee Regional Medical Center and access to Interstates 94 and 43. The Sigma Group provided civil engineering services. (12-12-2023 | Daily Reporter)

Enclave Cos. pitches 200 apartments, day care in Bloomington
Enclave Cos. is proposing to construct a 201-unit apartment building and detached day care in Bloomington. The Fargo, North Dakota-based developer is expected to present plans to the Bloomington Planning Commission next week. The project is proposed for a vacant site located at 6701 West 78th Street, which once housed a Life Time Fitness facility, according to city documents. The property owner is a business entity tied to Chanhassen-based Life Time. (12-15-2023 | Minneapolis / St. Paul Business Journal)

Minneapolis secures $20M for traffic safety measures
The U.S. Department of Transportation recently awarded the city of Minneapolis $20-million as a part of its "Safe Streets and Roads for All" grant program. The city will put the funds toward its Vision Zero program, which aims to reduce traffic collision deaths to zero by 2027. (12-15-2023 | Finance & Commerce)

The 2021 infrastructure bill put $5B toward and EV-charging network. The first station just opened.
On the western outskirts of Columbus, Ohio, two doors down from a Waffle House, is a truck stop that, as of recently, has the first electric vehicle charging station in the country to be financed in part by the 2021 federal infrastructure law. The Pilot Travel Center at I-70 and U.S. 42 has four charging ports. They are part of a partnership between General Motors and Pilot that the companies say will lead to chargers being installed at 500 Pilot and Flying J locations. (12-16-2023 | Fast Company)

Woodbury authorizes $800k clubhouse renovation at Eagle Valley Golf Course
The Woodbury City Council authorized a contract on December 13th with Minneapolis-based Kraus-Anderson Cos. Inc. to carry out an $800,000 renovation to the clubhouse at Eagle Valley Golf Course. The contract still needs to be signed by Woodbury's mayor and city administrator, which Dan Morris, recreation enterprise manager for the city, said he expected to happen this week. The $810,561 will come from the course's $2.8-million annual budget. (12-16-2023 | Minneapolis / St. Paul Business Journal)

Affordable housing project in Edina advances with MN Housing funds
Solhelm Companies' plan to bring 89 units of affordable housing to Edina appeared to be stuck in the mud just six months ago, but things are looking up as it's one of the big winners in the latest round of funding announced by Minnesota Funding. The project, known as 5780 Lincoln, will offer homes affordable to households at 50% or less the area's media income. The new apartment building will replace the old Londonderry Office Park at 5780 Lincoln Drive, as previously reported. (12-18-2023 | Finance & Commerce)

Alliant Energy completes 623-acre solar project in Wisconsin
Madison-based Alliant Energy announced the completion of a 99-megawatt solar array in Waushara County. "The completion of this project is a major accomplishment that will deliver safe, reliable, cost-effective energy to our customers for decades," Ben Lipari, assistant vice president of resource development at Alliant, said in a statement. (12-18-2023 | Finance & Commerce)

Convenience store chain making $151M of Wisconsin capital investments
Convenience store chain Kwik Trip plans to invest more than $151-million in an expansion of its Wisconsin operations, state officials announced. The company, according to the Wisconsin Economic Development Corp., intends to: (1) Expand its dairy, commissary and baking facilities in La Cross; (2) Purchase an renovate a commercial office building in Onalaska; and (3) Construct a new satellite distribution center. (12-18-2023  |  The Construction Broadsheet)

Glen Taylor to donate $172-million for Minnesota and Iowa rural development
Glen Taylor, the state's richest man and the current majority owner of the Minnesota Timberwolves/Lynx organization as well as the owner of the Star Tribune, announced that he is donating $172-million to support people in southern Minnesota and rural communities across Minnesota and Iowa. The donation is the first phase of a larger charitable plan to support childhood education, rural community-revitalization, environmental sustainability and the social well-being of families in need and aims to create financial framework to support these and other causes. (12-19-2023 | Minneapolis/St Paul Business Journal)

Kowalski's is headed to Ridgedale Center
Local grocer Kowalski's Markets is heading to Minnetonka's Ridgedale Center. The Woodbury-based grocery store will be located in the 25,600-square-foot space previously occupied by Sears Auto Center. The family-owned and -operated grocery store is set to open sometime in 2025. (12-19-2023 | Minneapolis / St. Paul Business Journal)

Minnesota DLI alleges 'widespread wage theft' on 19 projects
The Minnesota Department of Labor and Industry said that is has uncovered 'widespread wage theft and unlawful practice' on 19 construction projects throughout Minnesota, including the Viking Lakes mixed-use development in Eagan. As a result of a its investigation, the department said its seeking $2.4-million in back wages and liquidated damages from Property Maintenance & Construction LLC (PMC, also known as Property Maintenance and Construction Inc), and Advantage Construction Inc. (12-19-2023 | Finance & Commerce)

Prudential campus redevelopment clears Met Council hurdle
The Metropolitan Council's Community Development Committee recommended approval of a comprehensive plan amendment for a proposed redevelopment of the former Prudential campus in Plymouth, but the project didn't make the committee's list of sites recommended for environmental cleanup money. The amendment re-guides 75-acres on the site at 13001 County Road 10 from "commercial office" to "mixed use," and accommodates "future redevelopment of the site with a mixture of multifamily housing, retail/commercial uses, and a medical technical business park," according to a committee staff report. (12-19-2023 | Finance & Commerce)

Ex-Viking Tim Baylor buys South Minneapolis Burger King for mixed-use plan
Minneapolis-based JADT Development Group, led by founder and CEO Tim Baylor, plans to develop a mixed-use building at the site of a South Minneapolis Burger King that shuttered during the pandemic. The fast-food joint is now being torn down after the property sold last week for $1.15-million, according to a public real estate filing with the Minnesota Department of Revenue. The public filing notes that the restaurant will be transformed into a new 75-unit apartment building with first-floor commercial space. (12-19-2023 | Minneapolis / St. Paul Business Journal)

Beacon Interfaith project in Maplewood gets funding boost
Beacon Interfaith, a nonprofit affordable housing developer, announced 40 new units will be built in Maplewood after the group secured state funding for the project. The state funding is a part of the historic one-time $1.3-billion investment signed in by Governor Tim Walz in May. More specifically, the $14.8-million awarded to Beacon Interfaith is a part of $250-million designated for financing affordable multi-family housing, according to a press release from Beacon. The 40 homes will be a community called Gladstone Crossing at 1375 Frost Avenue. Half of the home will be designated for people with incomes that are 30% of the area median income, while the other half will be for people with incomes that are 50% AMI. (12-20-2023 | Finance & Commerce)

Luxury housing project in Inver Grove Heights lands $60-million in financing
Trident Development has closed on financing for a 244-unit luxury residential community that it's planning in Inver Grove Heights, near the Eagan border. JLL Capital Markets announced it worked on behalf of St. Cloud-based developer Trident to secure a $45-million construction load from Grand Forks, North Dakota-based Alerus Financial and $15.14-million in mezzanine financing from Minot, North Dakota-based Centerspace for its apartment and townhome project called Avalon Apartments and Townhomes (12-20-2023 | Minneapolis - St. Paul Business Journal)

Minnesota's 2022 work fatalities similar to 2021
The number of fatal work injuries on Minnesota jobsites in 2022 was roughly unchanged from with the previous year, according to a report released by the Minnesota Department of Labor and Industry. DLI, citing information from the U.S. Department of Labor, reported that 81 fatal work-injuries were recorded in Minnesota in 2022, up from 80 in 2021. The state's 2022 fatal-injury rate is 2.8 fatalities per 100,000 full-time-equivalent workers, which is unchanged from the 2021 rate. (12-20-2023 | Finance & Commerce)

New bill would require school districts to follow competitive bidding process
Wisconsin school districts would have to use competitive bidding for construction projects worth $150,000 under a proposal introduced by lawmakers. Assembly Bill 723 would require public school boards to enter the competitive bidding process when constructing new buildings and facilities, according to the bill text. The bill would raise the amount required for local governments to solicit competitive bids for public works projects, instead of awarding them directly, from $25,000 to $50,000. Some highway projects would be excluded. (12-20-2023 | The Daily Reporter)

Wayzata Schools buys Optum subsidiary Solutran's ex-Plymouth headquarters
The Wayzata school district bought the two-story, 32,000-square-foot building, located at 13305 North 12th Avenue for $7.75-million this week, according to a public real estate filing with the Minnesota Department of Revenue. (12-20-2023 | Minneapolis-St. Paul Business Journal)

Biden's Milwaukee visit highlights Black-owned businesses, lead pipe replacement
President Joe Biden toured a Black-owned plumbing company that's replacing lead pipes, a nationwide initiative that's been supported by his administration with billions of dollars, during his visit to the battleground state of Wisconsin. The trip was designed to spotlight a surge in federal government assistance for Black-owned small businesses during Biden's term and to highlight his administration's efforts to ramp up investment in distressed communities. (12-21-2023 | Finance & Commerce)

Enclave pitches 201-unit apartment in Bloomington
If Enclave Cos. has its way, Bloomington will soon be 201 apartments richer, as the developer plans to build on a lot that has been vacant for 17 years. The building, located at 6701 West 78th Street, would be five stories with 201 units. A detached, 11,000-square-foot day care center would also operate on the property, according to city documents. (12-21-2023 | Finance & Commerce)

Minnesota construction jobs up in November
Minnesota's construction industry added 300 jobs in November and has now seen growth in seven of the past eight months, according to data released by the Minnesota Department of Employment and Economic Development (DEED). Overall, the state gained 9,500 jobs from October to November, the fifth straight month of growth, DEED said in a press release, adding that it's the largest increase since January and "well higher than the national rate" of job growth. Also in November, Minnesota's labor force decreased by 7,433 workers for a participation rate of 68.3%. The U.S. rate is 62.8%. (12-21-2023 | Finance & Commerce)

Why Minneapolis' 2040 Plan didn't fix housing's 'missing middle'
Cody Fischer became an infill housing developer in Minneapolis in large part because of the Minneapolis 2040 plan. That comprehensive plan, which went into effect in 2020, is heralded in planning circles as one of the biggest reforms to what's consistently identified as a significant barrier to building more housing in America: the elimination of exclusively single-family zoning. (12-21-2023 | Minneapolis - St. Paul Business Journal)

Down year for multi-family but improvement could be near
When asked how he felt the market for apartments and other multi-family real estate fared in 2023, Northmarq's Ted Bickel had two words to describe it: "Choppy and slow." While there are other factors, interest rates are the first thing he points to when looking for a cultprit for the "choppy and slow" environment. (12-22-2023 | Finance & Commerce)

Wisconsin to spend $414M on wastewater, storm infrastructure
Wisconsin Governor Tony Evers, along with the state's Department of Natural Resources, announced that the Badger State would send $414,4-million to 84 municipalities through its Clean Water Fund program. The funding will help municipalities across the state build needed water infrastructure, according to the release. Projects that reduce phosphorus discharges and address aging equipment are included in the awards, with a focus on small and disadvantaged communities. (12-22-2023 | Construction Dive)

Workplace Law Updates for the New Year

Article updated 12-28-2023

A number of important workplace updates have been put in place via the Minnesota Department of Labor and Industry (DLI) over the past few months and quite a few go into effect in the new year. We've gathered them here for commercial constructors to review and take action as needed.

 

EARNED SICK AND SAFE TIME
Minnesota's earned and sick and safe time (ESST) law goes into effect January 1, 2024. The DLI continues to add resources and materials to help employers comply with the new law.

Resources recently added include new ESST FAQs, a recorded webinar presentation, an outreach toolkit for organizations and individuals who would like to help build awareness about the ESST law, and a sample employer notice that must be provided by employers to employees starting by January 1, 2024 when the ESST law goes into effect, and an ESST workplace poster (available in 18 languages).

 

MINIMUM-WAGE RATE
Effective January 1, 2024, Minnesota's minimum-wage rates will increase from $10.59 to $10.85 an hour for large employers and from $8.63 to $8.85 an hour for other state minimum wages.

Learn more about minimum-wage rates.

 

PAY-HISTORY BAN EFFECTIVE JANUARY 1, 2024
Employers in Minnesota may no longer ask a job applicant about their pay history beginning January 1, 2024. This law is being implemented, overseen, and enforced by the Minnesota Department of Human Rights.

 

NEW EMPLOYEE NOTICES
Veterans Benefits and Services
• All employers with more than 50 full-time employees are required to display this poster in a location where employees can easily see it. Required as of January 1, 2024

Earned Sick and Safe Time
• All employers must provide this notice to each of their employees by January 1, 2024 or at the start of employment if employment starts after January 1, 2024. Employers that have an employee handbook must include the notice in the handbook. Required as of January 1, 2024

Nursing Mothers, Lactating Employees. and Pregnancy Accommodations
• All employers must provide this notice to each of their employees at the time of hire and when an employee makes an inquiry about or requests parental leave. Required as of July 1, 2023

Employer-Sponsored Meeting or Communications
• All employers must post notice of employees' rights under this law by August 31, 2023. State law prohibits from taking or threatening to take any adverse employment action against employees who decline to attend employer-sponsored meetings concerning religious or political matters. Last updated August 2023

Minimum Wage Rates
• All employers are required to display this poster in a location where employees can easily see it. Last updated October 2023 

How to get the above mentioned poster notices?
1.)  Download and print the posters individually or in a five-poster PDF file. Posters fit on 8.5" x 11" paper.
2.)  Order posters online.
3.)  Email a request to dli.post@state.mn.us with a business name, contact name, mailing address, phone number and the name and amount of each poster needed.
4.) Order posters by phone at (651) 284-5042. When ordering, include a contact name, mailing address, phone number, and the name and amount of each poster needed. 

 

NOTICE OF CORRECTION TO PREVAILING-WAGE RATES
Affects highway and heavy regions

The commissioner of the Minnesota Department of Labor and Industry certified prevailing-wage rates for highway and heavy construction projects in all 10 Minnesota regions November 20, 2023.

This notice regards a correction to the rates for Region 2 (Job Code Group 306), Region 3 (Job Code Group 304), and Region 7 (Job Code Group 304). This correction is for all public works highway and heavy contracts advertised for bid on or after this date. 

The revised wage rate determinations and all other wage rate determinations are available online.

 

UPDATE ADDED DECEMBER 28, 2023
The Department of Labor and Industry (DLI) commissioner has certified prevailing-wage rates for commercial construction projects in all 87 counties, effective December 26, 2023. 

These rates were identified by annual voluntary survey of commercial construction projects in Minnesota collected by DLI.

See wage-rate determinations on DLI's website here. 

 

NOTICE OF TRUCK RENTAL RATE CERTIFICATION
The commissioner of the Minnesota DLI has announced a certification of minimum truck rental rates for state-funded construction projects in Minnesota.

The new rates are effective Monday, December 18, 2023. View the minimum truck rental rates here.

 

NEWS RELEASE
DLI seeks $2.4-million in back wages and liquidated damages in enforcement action against construction contractors

Minnesota's DLI has initiated a contested case against Property Maintenance & Construction LLC and Property Maintenance and Construction Inc (PMC) and Advantage Construction Inc (Advantage) by filing a Notice and Order for Hearing at the Office of Administrative Hearings. In the notice, DLI alleges PMC and Advantage failed to pay workers as required by law, resulting in back wages owed in the amount of approximately $1.2-million and an additional equal amount of approximately $1.2-million as liquidated damages.

DLI's investigation of PMG and Advantage uncovered widespread wage theft and related unlawful practices on 19 separate construction projects, including the Viking Lakes project in Eagan, Minn., during its investigative audit period of March 4, 2019, to June 5, 20222. DLI identified 25 employees that it alleges were jointly employed by PMC and Advantage and had not been paid the wages they were due, including overtime wages. DLI's findings include that many employees were paid off the books and in cash for a substantial portion for their employment and were not provided with earning statements as required by law. 

DLI also alleges the violations were willful. As described in the notice, PMC's owner displayed knowledge of overtime laws while flouting them and refusing to pay workers the overtime wages they were owed. Additionally described in the notice, the owner discouraged workers from reporting violations of the law and participating in DLI's investigation. As a result, DLI imposed a civil penalty of $25,000 for these willful violations of the law. Read the full press release here.

Hard Hats, Harder Times: Construction’s 2024 Landscape

As we wrap up 2023 and peek into 2024, let's have a real talk about the construction landscape. It's been a rollercoaster, hasn't it? With buzzwords like "recession" and "economic downturn" flying around, it's natural to feel uneasy about the future of the industry. But, we're a resilient bunch, and there's a lot we can do to navigate these choppy waters.

First off, the construction sector isn't immune to the hiccups of inflation, labor shortages, and those pesky supply chain disruptions. And yes, the experts are predicting more slowdowns thanks to those supply chain issues, rising costs, and high-interests rates. These challenges are not disappearing overnight, so its' crucial to stay sharp and find ways to keep the projects rolling smoothly.

The big question isn't if contractors will weather the storm, but more how well they do it. Let's dive in:

 

LABOR SHORTAGES
Everyone is feeling the pinch here. Finding and keeping great workers is tough, and the construction industry is feeling the squeeze particularly hard on this one compared to other industries. The demand for skilled hands is sky-high, but there isn't enough skilled workers to go around. Last year's survey from the AGC of American showed 91% of contractors struggled to fill positions. And guess what? In order to keep up with demand, about 546,000 new workers need to be brought on.

 

SUPPLY CHAIN DISTRUPTIONS
Oh, COVID-19, the gift that keeps on giving, right? The supply chain is still trying to bounce back, and the Build America, Buy America Act is adding more pressure with sourcing U.S.-made materials, especially for those businesses working on federally funded projects. We're talking longer wait times for materials to arrive.

 

INFLATION & MATERIAL COSTS
Here's a number for you: construction input prices have jumped 37.7% since 2020. This year's increase is 4.9%, a bit less scary than 2021's 23.1% hike. The price tags on materials are all over the place, with some, like lumber, actually dropping, while others, like concrete and construction equipment, are on the rise. This has made renting equipment more popular than ever.

 

THRIVING DURING UNCERTAIN TIMES
So, how can we keep our heads above water? Adaptation is the name of the game. Many industry vets have weathered economic downturns like this before, and there's wisdom in that experience. Look for cost-cutting strategies, protect your assets, keep informed, and stay optimistic.

 

STAY ON TOP OF TRENDS
Knowledge is power, folks. Keeping up with industry trends and news helps contractors prepare and tweak their strategies. Think articles, reports, newsletters --- all that good stuff to keep your business in the loop (and MBEX is a great go-to source for all of the above).

Another great place to gain insights into the 2024 construction season, tune in to Construction Executive's 2024 Construction Economic Update and Forecast on Wednesday, December 13 at 1:00pm CST. Led by Anirban Basu (chief economist for Associated Builders and Contractors) and crafted with commercial constructors in mind, he will offer insights on challenges facing the industry, sharing data and insights on labor expenses, materials pricing, market-sector growth and construction spending, as well as the latest on inflation and if, and/or when we'll actually see a recession. Register for this one-hour, free webinar here.

 

PLAN FOR THE UNEXPECTED
Expect hiccups with supply chains. Here are a few pro tips:

• Order early to avoid delays.
• Have a backup plan for material shortages/delays to keep projects on schedule.
• Look for alternative suppliers and subcontractors, as well as better rates.
• Use security measures like cameras to protect your materials.

 

FOCUS ON YOUR TEAM
A project is only as good as one's team. Investing your workforce is key; here's a few ideas on how to support them:

• Competitive Pay: It's not just about the paycheck; it's a sign of your company's value. The best talents expect the best compensation. 
• Embrace diversity: Diversity isn't just good for ethics; it's good business. More diverse companies tend to be more profitable.
• New Recruitment Avenues: Hit up job fairs and trade shows to find fresh talent, with both inexperienced and well-versed backgrounds.
• Supportive Culture: A great work environment keeps great workers. Think safety, fun, and growth opportunities.

 

LOSS PREVENTION
With high material costs, safeguarding your assets is crucial. Security cameras and professional monitoring not only deter theft but might also snag your business an insurance discount. Protecting your assets is key to maintaining profitability.

 

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No one is denying we're in a tough spot right now, but this industry is resilient (remember how we powered through the thick of COVID-19?). By facing these hurdles head-on, staying united, and being smart about costs, our industry is poised to emerge stronger than ever.

Roll up those sleeves, finish 2023 strong, and let's show 2024 what we're made of.

Navigating the Impact of a Looming Government Shutdown

Congress is once again approaching a critical deadline, one that could lead to a national government shutdown at 12:01 AM on Sunday, October 1, 2023. 

With congressional gridlock preventing the passage of even a continuing resolution, the prospect of a federal government shutdown, the third in five years, is looming large. While this political standoff impacts many sectors, the construction industry, a key player in infrastructure projects and development as well as job creation, is not immune to its effects.

In today's complex project funding landscape, even construction projects with partial federal funding could face disruptions. The consequences of a government shutdown extend beyond the immediately noticed surface, often overshadowing the federal contractors who support day-today government operations.

So, what would a government shutdown mean for the construction industry if it should happen later this week? Now is a key time for contractors to ensure they are taking the right steps to weather this impending storm. In this article, we will delve into both the short-term and long-term effects a shutdown could have on our industry, along with strategies to manage this uncertainty. 

 

Project Delays
One of the most immediate effects of a government shutdown would be immediate project delays, affecting infrastructure projects that rely on federal funding or permits. Key federal agencies, including the U.S. Department of Transportation (DOT), would not be fully operational. This means new federal projects may not begin, awards could be suspended, and ongoing projects could be put on hold. Clear communication with Contracting Officers (CO) is crucial during this period, as guidance on which activities can continue would be essential.

Some vital government functions are exempt, but most federal agencies would be curtailed. Key federal agencies, such as the U.S. Department of Transportation (DOT), would not be fully operational, meaning new federal projects would not break ground, awards would be suspended, and current projects would be put on hold. Federal agencies would also be unable to issue new guidance as to how funds should be used.

Clear communication with your Contracting Officers (CO) is crucial during a period like this. Ask for clear direction on which activities, if any, should continue during a shutdown. The Office of Management and Budget (OMB) is responsible for issuing instructions to federal agencies, including as to which employees and/or activities can be continued. Agencies develop internal plans based on those instructions, and COs should in turn instruct contractors based on their agencies’ plans. These instructions should also address whether government personnel will work during the shutdown, as well as which services will continue under individual contracts. 

 

Permitting and Regulatory Delays
Shutdowns disrupt the workflow of construction projects requiring federal permits or approvals. Understaffed agencies may struggle to process applications promptly, leading to uncertainty and project timeline delays.

It's also highly likely agencies like the Environmental Protection Agency (EPA) and the Department of the Interior (DOI) will see furloughed employees, preventing the issuance of necessary project documents, permits, and environmental reviews.  

One the positive side of the coin, the Federal Highway Administration could stay open and construction should be able to continue without interruption for current projects underway since they use highway trust fund money.

But, on the other side of the same coin, rail and transit projects face different obstacles. Federal transit employees would be furloughed, meaning local transit and rail agencies would need to use their own funds to pay contractors or shut down altogether. Airport construction will also sees shutdowns, depending on how the project funding came in.

 

Contract Disruptions
Contractors working on government projects may encounter payment delays, contract modifications, and stop-work orders. It's important to remember that a "shutdown" does not necessarily close everything down: a shutdown may halt performance under some contracts but not others.

Many contracts are "fully funded" --- i.e., funds have already been obligated to cover the price of a fixed-price contract or the estimated cost of a cost-reimbursable contract. Of course, complications can arise if performance depends on government employees who are furloughed, government facilities that are closed, or other government contracts that require additional funding during the lapse. For these reasons, and others, the government may stop work even on contracts that are already funded.

Similarly, a shutdown may affect funded contracts if performance is expected to exceed the estimated cost due to changes, delays, or other events for which a cost adjustment may be needed.

 

Infrastructure Deficiency
Delayed government-funded infrastructure projects can result in long-term deficiencies, impacting economic development and competitiveness. The Federal Emergency Management Agency’s Disaster Relief Fund, for instance, could face running out of funds, delaying disaster response and recovery efforts.

 

Investor Uncertainty
Prolonged government shutdowns can create market uncertainty, causing investors to pause and rethink committing to long-term projects, hindering industry growth.

State Departments of Transportation (DOTs) might hesitate to authorize new construction projects due to concerns about reimbursement (this is what happened during the 34-day shutdown in 2019). This could particularly affect new programs like those under the Infrastructure Investment and Jobs Act (IIJA). Many of these programs are new and agencies don't have a historical precedent to use in guiding how they'll be reimbursed during this type of project pause.

 

Private Sector Impact
The private sector is indirectly affected as well. Private projects that rely on government support, such as financing or loan guarantees, may face delays or increased costs.

 

Labor Force Challenges
As if the construction industry didn't already face enough challenges when it comes to its labor and workforce, a prolonged government shutdown could lead skilled workers to seek employment in other industries, posing challenges for retaining talent. 

Contractors are sometimes asked to renew a contract without funding because their work is considered “excepted,” and that could apply to more and more functions as a shutdown drags on. In any case, companies may want to ask what breathing room they do have and what they should do with their workers affected by a funding gap, whether that’s putting them on paid leave, setting them up with on-the-job training, furloughing them, or redirecting them to non-billable tasks not considered their primary duty.

 

Economic Impact
The construction industry is a significant contributor to the national economy, and a shutdown can lead to economic downturns, including job losses, reduced economic growth, and decreased consumer confidence.

In 2019, the five-week shutdown led to nearly 800,000 furloughed federal workers (or they continued to work but without pay) and an untold number of contractor employees were affected. It is estimated that 10,000 companies with government contracts were affected at the time, per reporting by the Washington Post. 

 

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Is there a way to lessen the impacts of a government shutdown now or in the future? There are several strategies to consider:

1.) Diversify Funding Sources
Contractors can consider diversifying their funding sources, such as seeking private investments or state-level funding, instead of relying completely on federal funding. This can help in making projects less vulnerable to government shutdowns when they occur.

2.) Contractual Protections
Contractors can incorporate clauses in their contracts that address the possibility of government shutdowns, allowing for negotiations and adjustments in case of disruptions.

Despite contract awards being delayed, government officials furloughed, and government facilities closed, the safest approach is to assume all deadlines remain unchanged until officially notified —especially deadlines for submitting proposals, filing bid protests, and appealing CO final decisions. Plan on meeting all solicitation deadlines for bid and proposal submissions and get further instructions from the contracting agency.

3.) Document Everything
In the days leading up to and during a shutdown, document all communications with your CO. This should include instructions or guidance provided by the government about the availability of government personnel, facilities, and other resources that you need to perform your contracts.

Keep detailed records of all work your employees perform under all your contracts as well as the impacts on the schedule for performance. It is also important to document your efforts to minimize any costs incurred due to the shutdown.

 

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National government shutdowns present significant challenges to the construction industry both in the short-term and long-term. By being proactive, contractors can take steps to minimize a shutdown's impact. Stay informed, adaptable, communicate clearly, and be prepared; together, we can navigate these uncertain times and continue contributing to infrastructure development and job creation.

 

Information regarding details of a possible government shutdown within this blog post were sourced from this Federal Times article written by Moly Weisner published on September 19, 2023; this Wiley Law article published on September 25, 2023; and; this Construction Dive article written by Julie Strupp published on September 26, 2023.

Why Physical and Mental Well-Being is Crucial

It's a familiar sight: Men and women clustered at a job site, hard hats and safety vests on and clearly visible. This standard image showcases a commitment to the physical safety of its workforce, a necessary aspect of any construction company.

The construction industry is one of enormous physical labor, including significant physical stress. However, mental stress has just as much of an impact on the safety of construction workers and at all levels. Whether managing projects in an office or working tirelessly on-site, the importance of both mental and physical well-being cannot be overstated. These two pillars of health are not just beneficial but are absolutely crucial for the success and longevity of every construction worker's career.

In this week's blog, we delve deeper into the significant benefits of prioritizing one's mental and physical well-being, not just for professional reasons, but personally, too.

 

Mental Well-Being: A Cornerstone of Success

1.) Stress Management: Construction projects often come with tight deadlines, budget constraints, and client expectations. Nurturing your mental well-being equips you with the tools to manage stress effectively. This, in turn, allows you to maintain a clear head, make rational decisions, and avoid burnout.

2.) Optimal Decision-Making: In construction, the ability to make sound decisions is paramount. When you prioritize your mental health, your cognitive abilities are sharpened, enabling you to make informed choices that can significantly impact the success of a project.

3.) Safety and Focus: Construction sites can be hazardous places. Mental well-being ensures that you remain alert, focused, and attentive to safety protocols, reducing the risk of accidents and injuries.

4.) Enhanced Communication and Collaboration: Successful construction projects rely on effective teamwork and communication. Mental well-being enhances your ability to relate to colleagues, clients, and subcontractors, fostering positive working relationships and efficient collaboration.

 

Physical Well-Being: The Key to Longevity

1.) Sustained Energy Levels: Construction work is physically demanding, often requiring long hours and strenuous labor. Maintaining your physical health ensures that you have the energy and endurance to tackle even the toughest tasks, day in and day out.

2.) Injury Prevention: The construction industry is known for its risks. Physical self-care, including warm-up exercises, stretches, and adherence to ergonomic principles, serves as a protective shield against workplace accidents and injuries.

3.) Career Longevity: A construction career can span decades, but only if physical well-being is made a top priority. By taking care of your body, you not only endure the rigors of the job but also ensure that you can enjoy a long and fulfilling career.

4.) Body and Mind Connection: It's important to recognize the relationship between one's mental and physical well-being. Regular exercise and a balanced diet not only promote physical health but also enhance mental clarity, emotional stability, and overall resilience.

 

10 Ways to Improve Your Physical and Mental Well-Being

1.) Practice Mindfulness Meditation. Allocate a few minutes each day for mindfulness meditation to reduce stress and enhance mental clarity.
2.) Regular Exercise. Incorporate regular physical activity into your routine, whether it's a workout, a walk, or stretching exercises. Aim for at least 30 minutes a day.
3.) Take Short Breaks. Incorporate short breaks into your workday to clear your mind and recharge.
4.) Balanced Nutrition. Maintain a balanced diet rich in fruits, vegetables, lean proteins, and whole grains to provide your body with the necessary nutrients for energy and recovery.
5.) Talk About Your Feelings. Don't hesitate to discuss your mental health with trusted colleagues or professionals if needed. Sharing your feelings can be therapeutic.
6.) Stay Hydrated. Drink enough water throughout the day to stay properly hydrated, especially in hot weather.
7.) Set Realistic Goals. Establish achievable goals for your projects and tasks to prevent overwhelm and reduce anxiety.
8.) Ergonomic Practices. Follow proper lifting techniques and ergonomic principles to minimize the risk of workplace injuries.
9.) Time Management. Use effective time management techniques to prioritize tasks and reduce work-related stress.
10.) Adequate Rest. Ensure you get enough sleep each night. Quality rest is essential for physical and mental recovery.

 

Self-care is an ongoing process. Everyone's approach to suit their individual needs and circumstances. By incorporating these suggestions into your daily routine, you can better your mental and physical well-being and thrive in the demanding field of construction.

Mental and physical well-being are not luxuries; they are foundational elements of success. By nurturing these aspects of your health, you not only improve your personal quality of life but also enhance your performance, safety, and longevity in the industry. Whether making strategic decisions in an office or laboring on a job site, your commitment to both your professional and personal well-being is an investment in your success.

Make plans to join MBEX and the Women's POWER series for the annual Fall Social and the first-ever Self-Care Health Fair on October 10 at Pinstripes. There will be a variety of mental and physical well-being experts present and ready to share their knowledge and tips from chiropractic CARE to mental health services to nutrition. Bonus: if you visit each Health Fair station, you'll be entered to win a very special self-care-focused giveaway to continue improving your overall well-being following the event. Register now to join us on October 10!

PS - This event is open to both MBEX members and non-members across the construction industry. Tell your friends!

Celebrating Labor Day

Labor Day is just around the corner (it's on Monday, September 4!), and it's not just an excuse for a three-day weekend or the last hurrah of summer. It's a day that pays homage to the backbone of our society: labor. Let's put on our hard hats and take a stroll down the history lane of Labor Day.

 

Why Labor Day Matters
Labor Day is a grand salute to workers, the champions who construct our world – quite literally. From towering skyscrapers to humble homes, bridges that span gaps to tunnels that connect, every brick, beam, and blueprint finds its way to realization through the dedication of construction workers of all trades and specialties. This day celebrates their tenacity, their skills, and their contributions to the progress we enjoy today.

 

The Origins: Back to the 19th Century
Travel back with us to the late 1800s, a time when a 12-hour workday was more common than an iPhone. Labor unions began to form, advocating for better working conditions, reasonable hours, and fair wages. Then, in 1882, New York City hosted the first Labor Day parade – a nonchalant, yet revolutionary, demonstration of workers' rights and unity.

 

How Labor Day Became a National Holiday
Fast-forward to 1894, and picture this: the Pullman Strike halted railroad operations, leading to a nationwide standoff between workers and their corporate leaders. The U.S. government (likely with an eye on avoiding more rail-related drama) quickly passed Labor Day as a national holiday, designated for the first Monday of every September. Clever, right? It was a gesture that said, "We see you, workers, and we respect your contributions."

 

The Parades: Not Just For Candy
Labor Day parades are not just an opportunity to toss candy to kids. These parades originated as demonstrations of solidarity, showing the world that workers were a force to be reckoned with. Today, they're still a nod to the historical struggle, but also a celebration of achievements (and an excuse to show off some snazzy floats). So, put on your construction-themed costumes and join the parade – safety vests optional.

 

The Ultimate Weekend
We can't finish this post without addressing what everyone *really* looks forward to when Labor Day rolls around: the long weekend. Labor Day isn't just about barbecues and pool parties (although, no complaints there). It's a reminder to pause, take a breath, and acknowledge the value and dignity of labor. It's about taking a well-earned break and recognizing the hard work and hard workers that underpin our modern society. Thank a construction worker today!

 

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As the final days of summer slip away, let's raise our glasses to the workers, the unsung heroes who turn architectural dreams into concrete realities. Whether you're in a hard hat or a corner office, we're celebrating the essence of progress and prosperity that's built on the shoulders of dedicated labor. Cheers to you on this Labor Day!