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| March 18, 2011
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AGC Outlines Proposals to Spur Building More Projects |
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The Associated General Contractors of America released a plan Tuesday detailing proposals to jump-start the nationwide demand for construction, including for transportation projects. That plan is needed to address the declines in construction employment that have occurred in 317 of 337 metropolitan areas since January 2007, according to AGC.
"Our goal is to rebuild a devastated construction market that has left millions jobless; littered cities with incomplete projects; and sapped much needed revenue, commerce, and customers out of our economy," said Stephen Sandherr, AGC's CEO. "Considering the scope and impact of construction job losses, the last thing any of us can afford is a repeat of the past four years." The plan, "Building A Stronger Future: A New Blueprint for Economic Growth," outlines several measures to reverse those trends. "Taken together, these changes will allow sound private-sector construction projects easier access to credit and financing, encourage greater efficiency upgrades in our buildings and facilities, and keep construction costs competitive," according to the plan. One way to accomplish that involves encouraging private-sector demand for construction through such means as various tax deductions and exemptions for businesses. The plan also sets forth proposals for taking on the ever-expanding backlog of infrastructure maintenance needs across the nation. "Transportation projects are often complex, multiyear projects that take time to plan, fund, and complete," according to AGC. "Many multiyear surface and aviation projects are now months late because long-term surface and aviation transportation bills have languished." AGC also suggests addressing the infrastructure backlog by transitioning from the current gas tax to a vehicle miles traveled tax, creating a national infrastructure bank, consolidating all earmarked transportation funds that have gone unused for at least 10 years into a Public/Private Partnership Innovation Fund, and re-establishing the now-expired Build America Bonds program. (see related story regarding NIB and BABs) The plan also discusses possible regulatory reforms to facilitate the pace of construction projects. The reforms include streamlining both environmental reviews for infrastructure projects and the approval process for the Federal Transit Administration's New Starts capital program. (see related story about U.S. Department of Transportation regulatory review) "Nobody questions the need to ask tough questions and demand good answers about construction's impact on the environment, the quality of work, and whether the government is getting a good value for its investment," according to the plan. "But it shouldn't take years of effort, dozens of staff, and miles of red tape to answer those questions." The 12-page plan is available at bit.ly/AGC-Plan. Questions regarding this article may be directed to editor@aashtojournal.org. |