from Mark Smith, Advocate, California Builders Alliance
Construction spending in the US fell 0.1% in July from June, with private nonresidential and multifamily sectors seeing declines as public construction and single-family homebuilding rose, according to the Associated General Contractors of America. AGC attributes the overall decline to tariffs and labor shortages, with 16% of contractors reporting cancellations or postponements due to tariffs and 45% citing delays because of labor shortages.
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Full Story: Construction Briefing |
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California has enacted a law to cap retention at 5% for private construction projects starting Jan. 1, 2026. Senate Bill 61 introduces California Civil Code Section 8811, which mandates the cap for owners, contractors and subcontractors. Exceptions include projects requiring payment and performance bonds and certain residential projects.
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Full Story: The National Law Review |
Severe labor shortages have prompted the Associated General Contractors of America to urge the federal government to create of lawful pathways for foreign construction workers, including a construction-specific temporary visa, noting current options like H-2B are cumbersome and used by only 10% of firms. Immigration crackdowns are already disrupting workforces at 28% of firms. With about one-third of US construction trade workers born outside the US--with half or more in several states and up to 61% in trades like insulation, drywall, and roofing---AGC's survey underscores that immigration reform expanding legal work channels is essential even as contractors raise pay and invest in training. However, waiting for the government to act won't help firms in the meantime.
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Full Story: Construction Briefing (9/1), Global Construction Review (UK) |
The House has passed a $57.3 billion energy and water development appropriations bill by a narrow margin, with four Republicans joining Democrats in opposition. The bill includes significant cuts to renewable energy funding, with a 47% reduction for the Office of Energy Efficiency and Renewable Energy, but it increases funding for nuclear power and the US Army Corps of Engineers. The bill also rescinds $5.1 billion from programs under the Infrastructure Investment and Jobs Act.
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Full Story: Engineering News-Record (tiered subscription model) |
Despite the traction design-build delivery is gaining in the construction industry, myths persist, such as misconceptions about clarity, control, quality, change orders and competitive bidding. Examples of real-world projects, such as Qcells' manufacturing facilities and Grady Memorial Hospital's expansion, demonstrate the efficacy of design-build, writes Patrick McCowan, chief operating officer of Gray Construction.
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Full Story: Building Design+Construction |
ARX is addressing the need for personal protective equipment designed exclusively for women, with a focus on fit, comfort and function. "What if you handed to men, women's PPE and expected them to wear it?" says ARX co-founder Kaitlin McCarthy. "It's funny, because that really drives it home for people -- that it seems socially unacceptable to give that to men, but not the other way around."
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Full Story: Engineering News-Record (tiered subscription model) |
The Consumer Product Safety Commission has withdrawn a pending rule that would have required table saws to have sensor-activated brakes to prevent injuries, citing concerns about costs and competition. The move, part of a broader deregulatory approach, has drawn criticism from safety advocates who say the technology could prevent thousands of injuries annually. SawStop, a company with a significant market share in this technology, faces patent-related opposition that has led to a bill in Congress to delay the rule until key patents expire.
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Full Story: Engineering News-Record (tiered subscription model) |
Trimble has announced 16 finalists for its 0-60 Challenge, an accelerator program aimed at supporting startups in the architecture, engineering, construction and asset lifecycle management sectors. The finalists, selected for their innovative solutions in connected data, design and field operations, will present their ideas at the Trimble Dimensions User Conference in Las Vegas, Nev. The top three will receive cash prizes and all participants can offer their integrations on the Trimble Marketplace.
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Full Story: Construction Briefing |
Lisa Stalteri, a partner at Lathrop GPM, discusses the importance of effective project management and risk allocation in contracts for megaprojects. Stalteri highlights the construction managment at-risk delivery method as effective for large projects and notes the prevalence of material price escalation clauses due to economic uncertainties. She cautions that a zero-sum approach to risk allocation increases the chance of defaults, insolvency, and litigation, while a balanced approach, supported by clear dispute resolution processes, helps ensure project success
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Full Story: Construction Dive |
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The Turlock, Calif., Irrigation District has completed the wide-span section of Project Nexus, California's first solar-over-canals pilot project. The project, a partnership with the California Department of Water Resources, the University of California at Merced and Solar AquaGrid, has a total generation capacity of 1.6 megawatts and aims to produce clean energy while reducing water evaporation from canals.
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Full Story: KMPH-TV (Fresno, Calif.) |
Two new road extensions have opened near Los Angeles International Airport as part of a $5.5 billion mobility program, easing connections between Century Blvd/Westchester Pkwy and La Cienega Blvd/405 for access to the Consolidated Rent-A-Car facility. Jetway's first phase was built by Myers & Sons Construction and Griffith Co., its second phase by the LAX Integrated Express Solutions consortium (including Fluor, Balfour Beatty and ACS Group affiliates), while Skanska Civil USA led the 98th Street extension.
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Full Story: Los Angeles Business Journal |
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Mark Smith
Advocate
California Builders Alliance
5370 Elvas Avenue ǀ Sacramento, CA 95819
Cell: 916.335.5072
Email: mark.smith@calbuilders.org
Email: mark@smithpolicygroup.com
