Constructor - January/February 2013 - (Page 72)

LEGISLATIVE AND REGULATORY NEWS AGC PUSHES BACK AGAINST EFFORT TO IMPOSE A PLA ON SAN DIEGO NAVY PROJECT On Nov. 6, 2012, AGC of America sent a letter opposing a government-mandated project labor (PLA) inquiry posted by the Naval Facilities Engineering Command (NAVFAC). NAVFAC Southwest sought industry comments on a possible PLA for a project at the Naval Medical Center in San Diego, Calif. The job is for the design and repair of the medical center’s HVAC and ductwork systems valued at approximately $65 million. AGC neither supports nor opposes contractors’ voluntary use of PLAs on government projects, but strongly opposes any government mandate for contractors’ use of PLAs. AGC is committed to free and open competition for publicly funded work, and believes that the lawful labor relations policies and practices of private construction contractors should not be a factor in a government agency’s selection process. PROPOSITION 30 WILL IMPACT CALIFORNIA CONTRACTORS ON JAN. 1 With the passage of Proposition 30, California voters approved a ¼ cent sales tax for four years effective Jan. 1. They also approved a seven-year increase in income taxes for those individuals earning over $250,000 a year. The taxes are intended to help balance the state’s budget and fund California’s education system. However, there is an unintended consequence for contractors in Proposition 30: Those that are currently in fi xed-price contracts past Jan. 1 will have to absorb the tax increase; and those that plan to bid on a fi xed-price contract prior to Jan. 1 should factor in the tax hike when preparing a bid. This “tax hike” predicament hasn’t gone unnoticed at AGC San Diego Chapter. Earlier this year, the chapter tried unsuccessfully to get an exemption from the tax inserted into Proposition 30 as it was being drafted. It is interesting to note that current law allows an exemption to fi xed-price contracts for city and county tax increases. Over the last several years, AGC has tried to legislatively fi x the problem, and two options have been addressed in the event of a sales tax increase: Have the contractor pay the sales tax rate that was in effect at the time of the bid or provide for an adjustment in the contract to compensate the contractor for the increase. However, legislation this year was held in the Senate Appropriations Committee, and in 2009, Gov. Schwarzenegger vetoed a similar bill. AGC will continue to press its case for contractor relief from this tax increase and future tax increases. In the meantime, California contractors should take the necessary steps to prepare for the ¼ cent sales tax effective Jan. 1. 72 constructor | JAN U ARY/ FEBRU ARY 2013 http://www.naylornetwork.com/ngc-nxt/

Table of Contents for the Digital Edition of Constructor - January/February 2013

EDITOR’S NOTE
PRESIDENT’S MESSAGE
CEO’S LETTER
A SLOW CLIMB
OPTIMISM MATERIALIZES
BIM BUZZ
HIGH HEELS AND HARD HATS
ACHIEVING NET ZERO TAKES TEAMWORK
SECURE THAT SITE
AGC IN ACTION
ACCELERATED BRIDGE CONSTRUCTION EARNS HAMILTON TOP HONORS
WHO ARE YOU? PART II
LOW IMPACT AT HIGH SPEED
BUILDING CONCRETE RELATIONSHIPS THROUGH BIM
TECHNOLOGY TOOLBOX
TECHNOLOGY TOOLBOX
MEMBER AND CHAPTER NEWS
LEGISLATIVE AND REGULATORY NEWS
UPCOMING EVENTS
2013 SERVICE & SUPPLY BUYERS’ GUIDE - A SPECIAL ADVERTISING SECTION
PRODUCTS & SERVICES MARKETPLACE
INDEX TO ADVERTISERS
FINAL INSPECTION

Constructor - January/February 2013

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